T-Mobile’s service revenues in 1Q17
T-Mobile (TMUS) once again led the industry in YoY (year-over-year) service revenue percentage growth in 1Q17. This marks the 12th consecutive quarter that TMUS has led the industry in this metric. Service revenues are stable revenue streams common among wireless carriers such as T-Mobile, Verizon (VZ), AT&T (T), and Sprint (S). T-Mobile’s service revenues increased ~11.4% YoY to reach ~$7.3 billion in 1Q17.
The main reason for the increased service revenues was growth in the company’s subscriber base in existing and expansion markets, driven by the MetroPCS brand and Un-Carrier plan initiatives.
The postpaid and prepaid segments fueled service revenue growth during 1Q17. Growth was more significant in the prepaid segment.
Service revenues in the postpaid segment grew ~9.8% YoY to reach ~$4.7 billion in 1Q17. The prepaid segment also contributed ~$2.3 billion of service revenues. This revenue stream grew ~13.5% YoY during the quarter.
Performance of other significant US wireless carriers in 1Q17
Let’s look at the growth in wireless service revenues of the other major US wireless players in 1Q17. During the quarter, Verizon’s wireless service revenue decreased ~6.1% YoY to reach ~$15.8 billion.
Meanwhile, AT&T’s wireless service revenues from its domestic operations fell ~1.8% YoY to ~$14.5 billion in 1Q17. During the same quarter, Sprint’s service revenues from the wireless component decreased ~6.7% YoY to reach $5.7 billion. This shows that T-Mobile managed to grow the most among its peers.