uploads///Telecom Q Wireless Service Revenue

Wireless Service Revenue Trend of the Top Telecom Players

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Wireless service revenue

Let’s take a look now at two important segments of US telecom (telecommunication) carriers’ wireless revenues. The larger segment is wireless service revenue, and the smaller segment is wireless equipment revenue. Wireless service revenue is a stable revenue stream that’s common to wireless carriers, including Verizon (VZ), T-Mobile (TMUS), AT&T (T), and Sprint (S).

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Wireless service revenue of top telecom players

Verizon generated wireless service revenue of $15.6 billion in 2Q17, a 6.7% fall YoY (year-over-year). The fall was mainly due to lost overage revenue and pricing plan optimizations primarily by single-line users after the launch of an unlimited offering.

T-Mobile’s wireless service revenue rose ~8.1% on a YoY basis to ~$7.4 billion in 2Q17. The rise was mainly due to an increase in the company’s subscriber base in existing and expansion markets, driven by its Un-carrier plan initiatives and the MetroPCS brand.

Sprint’s wireless service revenue fell ~6.2% YoY and ~0.30% sequentially to ~$5.7 billion in fiscal 1Q17 (quarter ended June 2017). The fall was due to changes in the company’s device insurance program and lower postpaid phone ARPU (average revenue per user).

AT&T’s wireless service revenue from its domestic operations fell ~2.5% YoY to ~$14.5 billion in 2Q17. The fall was due to the continued adoption of unlimited plans as well as intense wireless competition.

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