uploads///Telecom T Mobile Q Service Revenue

Why Do T-Mobile’s Service Revenues Keep Rising?

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Dec. 4 2020, Updated 10:53 a.m. ET

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.

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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.

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