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MetroPCS CEO: Disappointed In Subscriber Growth

By Roger Cheng, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- MetroPCS Communications Inc. (PCS) Chairman and Chief Executive Roger Linquist said he was disappointed with the wireless provider's customer growth, and blamed competitive forces and high unemployment for the shortfall.

The company is working on enhancing the value of its services, but noted that the depth and duration of the economic downturn, with consumers in its footprint having little prospects for jobs, Linquist told analysts during a conference call on Thursday.

The third-quarter weakness and lower full-year expectations have at least one analyst wondering whether a merger with Leap Wireless International Inc. (LEAP) would make sense. Linquist, however, dashed any hopes on the call.

"There's no interest in pursuing the transaction," he said, but added that if there was an opportunity for a deal, he would be open to it.

Investors were concerned with MetroPCS's lowered adjusted earnings before interest, taxes, depreciation and amortization and subscriber growth estimates for the year, and the fact that the company declined to provide an estimate for next year. But Chief Financial Officer J. Braxton Carter defended the lowered 2009 estimate, noting that it was prudent to remain conservative with its expectations. The uncertainty makes it tough to offer an accurate estimate for next year, he added.

Looking ahead, Linquist said the company will rely on its move to the faster fourth-generation, or 4G, wireless network and a push toward more smartphones. It won't be until the second half of next year when the company can get adequate 4G coverage, he said.

He added he plans to offer devices using Google Inc.'s (GOOG) Android software, as well as offer its own App Store next year. He said he sees an opportunity in connecting smartphones to the 4G network.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com

  (END) Dow Jones Newswires
  11-05-091026ET
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