uploads///Telecom Sprint Platforms Postpaid Customers

How Is Sprint’s Offer for Competitors’ Customers Faring?

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Nov. 20 2020, Updated 3:16 p.m. ET

Sprint’s offer for T-Mobile, Verizon, and AT&T customers

In this part, we’ll look at Sprint’s (S) 50% offer for select customers of carriers T-Mobile (TMUS), Verizon (VZ), and AT&T (T). According to the company, this promotional effort was started on November 20, 2015. Additionally, the 50% discount being offered to the customers of these wireless carriers is for monthly charges associated with the service plan as well as the access line. During the Citi Internet, Media & Telecommunications Conference held on January 7, 2016, Sprint’s chief financial officer Tarek Robbiati talked about how this promotion was doing.

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According to Tarek Robbiati, “So the promotion we’ve is for a limited time only, but we felt good about it and you probably heard already. We announced it, Marcelo announced it with the tweet. We are extending it for further 30 days.” He added, “It’s worthwhile for us and you would extend something that wouldn’t work well for you, would you. So it would be happy with it as it stands.”

Postpaid customer growth: Sprint versus peers

Now let’s look at how Sprint’s postpaid growth has been compared to that of peers in the first nine months of 2015. At the end of the period, postpaid subscribers of Sprint’s platform increased YoY (year-over-year) by ~3.7% to ~30.6 million.

For Verizon and AT&T, YoY postpaid growth in customers was ~4.9% and ~2.1%, respectively, at the end of the same period. Verizon and AT&T had ~105 million and ~76.7 million postpaid customers, respectively. T-Mobile’s (TMUS) postpaid customer growth was significantly higher than that of peers during the period. The wireless carrier’s postpaid customers increased by ~17.3% YoY to reach ~30.4 million by the end of the first nine months of 2015.

For diversified exposure to telecom companies in the United States, you may consider investing in the iShares Russell 1000 Value ETF (IWD). The ETF held a total of ~2.5% in some of the US telecom players at the end of December 2015.

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