uploads///Telecom Q Postpaid Phone Net Additions

What to Expect from Sprint’s Postpaid Phone Net Additions



Sprint’s postpaid phone net additions in fiscal 4Q16

In the earlier parts of this series, we looked at Wall Street analysts’ expectations for Sprint’s (S) fiscal 4Q16 (ended March 31, 2017) earnings and how much revenue growth we can expect. We also looked at expectations for Sprint’s adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). Now let’s see what postpaid phone net additions we could expect from Sprint in fiscal 4Q16.

According to a FierceWireless report on April 5, 2017, “Wells Fargo recently lowered postpaid net addition expectations for Sprint to 20,000, and it expects AT&T and Verizon to report negative phone additions despite the launch of unlimited plans.”

In fiscal 3Q16, the strong momentum at Sprint showed no signs of slowing down, with 368,000 postpaid phone net additions compared to 347,000 in fiscal 2Q16 and 366,000 in fiscal 3Q15. The main reason for the increase was improved gross additions.

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Peer comparison of postpaid phone net additions

Major wireless carriers in the United States will continue to face pressure on postpaid phone volumes in the coming years, given an increasingly competitive market. In comparison, postpaid phone net additions for Verizon (VZ) were 167,000 in calendar 4Q16. AT&T (T) suffered a loss of 67,000 postpaid phone subscribers that quarter, and T-Mobile (TMUS) reported 933,000 postpaid phone net additions.

Postpaid phone users, especially smartphone users, are of particular value to mobile carriers. Users of smartphones such as Google’s (GOOG) Android and Apple’s (AAPL) iPhone tend to have high data usage, making them the most lucrative customers for telecommunication companies.

Let’s move on to the next part and look at Sprint’s prepaid net additions.


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