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T-Mobile reported net income of $425 million in the second quarter, up from $322 million in the first quarter, but down from $452 a year ago. Its revenue also fell to $5.34 billion from $5.47 billion a year ago. Probably diversely affected by the increase in churn rate, although the nation’s forth-largest wireless carrier added 325,000 customers in Q2, the figure went down from the 415,000 additions in the previous quarter and the 668,000 additions in Q2 2008. Among these new customers, only 17 percent were contract based. For the quarter ended in June 30, the company has a total of 33.5 million customers, keeping its fourth place among other carriers.

Meanwhile, Sprint, being the third-place carrier but losing a lot of customers, is not doing very well either. While T-Mobile and Sprint are competing with smaller carriers for lower-profit prepaid customers, their strong rivals AT&T and Verizon have attracted valuable contract-signing subscribers: AT&T added 1.4 million customers in the second quarter and Verizon Wireless added 1.1 million subscribers.

To retrieve the situation in the next quarter, T-Mobile is giving most of its faith in its newly launched smartphone myTouch 3G, which is running on Google’s Android. It offers mobile devices high stability and shows a strong focus on software with its inventive Android Market. The carrier will also release new models later to help boost its rank in the fast-growing smartphone market.

"In 2009, we're launching the best products and services we've ever brought to market," T-Mobile USA President and CEO Robert Dotson said in a press release.

But competition remains fierce, as AT&T enhanced its strength with the launch of iPhone 3GS in June, and Verizon Wireless will also enter the Android-powered phone market with Motorola in the fourth quarter of 2009. Therefore, T-Mobile will have to work harder in order to counter balance with other cell phone providers in such intense smartphone market.