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Verizon’s Postpaid Phone Net Additions Returned to Solid Growth

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Verizon’s postpaid phone net additions in 2Q17

In the previous part, we learned that Verizon’s (VZ) wireline component EBITDA (earnings before interest, tax, depreciation, and amortization) margin has risen significantly YoY (year-over-year) for the last few quarters. Now let’s take a look at Verizon’s postpaid phone subscriber net additions.

In 2Q17, Verizon gained 358,000 postpaid phone net subscribers, whereas it lost 289,000 postpaid phone net subscribers in 1Q17. This increase in postpaid phone subscribers was mainly due to the success of its unlimited plans at lowering churn.

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Peer comparison

In 2Q17, T-Mobile (TMUS) added 786,000 postpaid phone net subscribers, whereas AT&T (T) lost 89,000 postpaid phone subscribers during the same period. Meanwhile, Sprint (S) reported 88,000 postpaid phone net additions in fiscal 1Q17, which ended in June 2017.

Postpaid phone customers, especially the smartphone customers, are of particular value to telecom companies. Users of smartphones like Apple’s (AAPL) iPhone or Google’s (GOOG) Android tend to have higher data usage. Thus, smartphone customers are the most lucrative customers for mobile carriers.

In the next part, we’ll take a look at Verizon’s prepaid customer net additions.

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