OKLAHOMA CITY, April 16, 2004 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) reported today that its gross subscriber additions (postpaid) for the first quarter ended March 31, 2004 were approximately 68,700, compared with 89,100 gross subscriber additions for the immediately previous quarter and 75,000 for the first quarter of 2003. Subscriber and churn totals for 2004 and 2003 include the results of Dobson Cellular Systems and American Cellular Corporation, which became a wholly owned subsidiary of Dobson Communications in August 2003.
Postpaid customer churn was 1.9 percent for the first quarter of 2004, compared with churn of 1.9 percent for the fourth quarter of 2003 and churn of 1.8 percent in the first quarter of 2003 for the combined operations of Dobson Cellular and American Cellular.
Consequently, Dobson reported a net reduction of approximately 5,400 total subscribers for the first quarter (apart from acquired subscribers), compared with approximately 14,400 net subscribers added for the fourth quarter of 2003 and 13,500 in the first quarter of 2003 for the combined operations of Dobson Cellular and American Cellular. Dobson served a total of approximately 1,567,200 subscribers as of March 31, 2004, which includes approximately 20,500 subscribers added with the acquisition of the Michigan Rural Service Area (RSA) 5 during the first quarter. Postpaid, prepaid and reseller subscribers are included in net subscriber additions. Gross subscriber additions and churn are reported on a postpaid basis only.
Dobson plans to report full financial results for the first quarter after the close of market trading on Monday, May 10, 2004. At this time, the Company expects to report first quarter roaming revenue of approximately $42 million for the quarter, based on approximately 300 million minutes of use (MOUs). MOUs for the first quarter were virtually flat compared to the first quarter last year, on a pro forma basis for the Company's 2003 acquisitions. The Company said that GSM roaming traffic accounted for approximately 10 percent of its first quarter roaming MOUs. Based on these results, Dobson stated that its roaming revenue outlook for 2004 has not changed from that which it presented at its February 18, 2004 Investors Conference.
For most of the first quarter, Dobson was selling only TDMA handsets in the majority of its markets. The Company launched retail sales of GSM/GPRS handsets and calling plans in limited markets in March, and it is on schedule to launch GSM/GPRS sales in all of its markets by July 2004. Consequently, the Company expects stronger sales volumes in the remainder of the year.
Dobson also announced that it has completed the overlay of GSM technology in all its cell sites in the Continental United States in the first quarter, as well as adding 30 new GSM cell sites. The project's next stage is to overlay its Alaska markets in the current quarter and upgrade systemwide with EDGE software, which supports high-speed wireless data communications, by the end of July 2004.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.