In Peru, as you are aware, last quarter we made the decision to delay a broader rollout of our 3G Push-to-Talk product while we made adjustments to improve the quality of the service. This was the right decision, as quality will be one of the most important ingredients to drive profitable growth in the future. This delay, combined with higher customer churn, resulted in lower net adds for the quarter. I will provide more information in a few moments, but we are happy to report that we have completed improvements to our 3G Push-to-Talk service and we are making this service available on a broader scale in Peru beginning in May. We expect this service to contribute to our growth beginning in the third quarter.
In Argentina, as we discussed in our last call, after experiencing positive initial customer acceptance of our prepaid trial service, we made the decision to take a more deliberate approach to growing our prepaid base so that we can better understand the characteristics of the customers who prefer this service and how best to serve them. We will use that learning to find the right balance between prepaid subscriber growth and profitability. As a result, we reported a fairly significant sequential decline in our prepaid gross subscribers during the first quarter. Going forward, we expect prepaid plans to be a component of our strategy in Argentina and may contribute more growth in the coming quarters.
We expect that we will continue to face challenges through the balance of this year, but we believe that the actions we've taken and planned to date will create a path to reach our 2012 net add goals. These actions include our more aggressive offering of voice services on our 3G network in Peru and our launch of services on our 3G networks in Chile and Mexico later this year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV