uploads///Telecom Q Postpaid Phone Net Additions

What to Expect from Verizon’s Postpaid Phone Net Additions in 3Q17

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Oct. 10 2017, Updated 7:43 a.m. ET

Verizon’s postpaid phone net additions in 3Q17

Earlier in this series, we discussed the Wall Street analysts’ expectations for Verizon’s (VZ) 3Q17 earnings and total revenue growth. We also looked at the consolidated adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] that we could anticipate from Verizon in 3Q17.

In this article, we’ll look at the postpaid phone net additions that Verizon could report. Wall Street analysts expect 185,000 postpaid phone net additions from Verizon in 3Q17.

In 2Q17, Verizon added 358,000 postpaid phone net customers, while the company had lost 289,000 postpaid phone customers during 1Q17. This increase in postpaid phone net customers is mostly due to the success of its unlimited plans at lowering churn.

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Verizon’s peer comparison of postpaid phone net additions in 2Q17

In 2Q17, T-Mobile (TMUS) gained 786,000 postpaid phone net customers, whereas AT&T (T) lost 89,000 postpaid phone customers. Sprint (S) added 88,000 postpaid phone net customers in fiscal 1Q17.[1. fiscal 1Q17 ended June 2017]

Postpaid handset users, especially smartphone users, are of significant value to the telecom companies. Users of smartphones such as Google’s (GOOG) Android or Apple’s (AAPL) iPhone tend to have relatively higher data usage. Thus, smartphone users are the most lucrative users for the mobile carriers.

In the next part, we’ll look at Verizon’s prepaid component.

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