What to Expect from AT&T’s 3Q17 Postpaid Phone Net Additions



AT&T’s postpaid phone net additions

In the previous part of this series, we looked at AT&T’s (T) anticipated combined domestic wireless operations EBITDA (earnings before interest, tax, depreciation, and amortization) for 3Q17. Now we’ll see what postpaid phone net customer additions we might expect from AT&T in 3Q17. Wall Street analysts foresee postpaid phone net customer additions as negative due to the growing intense competition in AT&T’s traditional wireless business.

In 2Q17, AT&T lost 89,000 postpaid phone net subscribers. That compares to 348,000 net losses in 1Q17.

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Peer comparison of postpaid phone net additions in 2Q17

In 2Q17, T-Mobile (TMUS) gained 786,000 postpaid phone net subscribers, and Verizon (VZ) gained 358,000. Sprint (S) added 88,000 postpaid phone net customers during the same period.

Postpaid handset users, especially smartphone subscribers, are of significant value to wireless carriers. Users of smartphones such as Google’s (GOOG) Android or Apple’s (AAPL) iPhone tend to have higher data usage, making them the most lucrative users.

In the next part of this series, we’ll look at the anticipated postpaid phone churn rate for AT&T in 3Q17.


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