T-Mobile’s service revenue in 3Q17
T-Mobile (TMUS) once again led the US wireless sector in YoY (year-over-year) service revenue percentage growth in 3Q17. This marks the 14th-straight quarter that the telecom company has led the sector in this metric.
Service revenues are the stable revenue streams common to wireless behemoths like T-Mobile, AT&T (T), Verizon Communications (VZ), and Sprint (S). T-Mobile’s service revenues rose ~7.0% YoY to ~$7.6 billion in 3Q17.
T-Mobile’s YoY growth in service revenues was primarily driven by growth in its subscriber base in existing and expansion markets, driven by “UN-Carrier” initiatives as well as the MetroPCS brand.
The prepaid and postpaid segments continued to fuel service revenue growth in 3Q17, bug growth was more significant in the prepaid segment. Service revenues in the postpaid segment grew ~5.9% YoY to ~$4.9 billion in 3Q17. The prepaid segment contributed ~$2.4 billion to service revenues, and this revenue stream grew ~8.9% YoY during the quarter.
Performances of other significant US wireless carriers in 3Q17
By comparison, Verizon’s wireless service revenues fell ~5.1% YoY to ~$15.8 billion, while AT&T’s wireless service revenues from its combined domestic operations fell ~2.8% YoY to ~$14.5 billion in 3Q17.
During the same quarter, Sprint’s service revenues from its wireless component fell ~6.1% YoY to $5.6 billion.