uploads///Telecom ATT Q Wireless Service Revenue

Why AT&T’s Wireless Service Revenue Fell in 4Q17

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Feb. 23 2018, Updated 7:33 a.m. ET

AT&T’s wireless service revenue

In this part, we’ll look at the two important components of AT&T’s (T) wireless revenue. The smaller part is the telecom company’s wireless equipment revenue, whereas the larger part is its wireless service revenue. Its combined domestic wireless operations service revenue continued to fall in 4Q17.

In 4Q17, AT&T posted combined domestic wireless operations service revenue of $14.3 billion, a ~2.5% reduction YoY (year-over-year). This reduction was mainly due to lost overage revenue and rate-plan optimization by single-line users after the introduction of unlimited offerings. AT&T expects its wireless service revenue growth to improve in 2018 and turn positive.

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Other US wireless carriers’ performance

In calendar 4Q17, Sprint’s (S) wireless service revenue fell ~5.5% YoY to $5.6 billion, whereas Verizon’s (VZ) fell ~2.9% YoY to $15.9 billion. Meanwhile, T-Mobile’s (TMUS) wireless service revenue rose ~7.1% YoY to $7.8 billion.

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