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What to Expect from AT&T’s Postpaid Net Additions in Q2 2018

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AT&T’s postpaid phone net additions

In the previous article, we discussed AT&T’s (T) expected combined domestic wireless operations service revenue growth in the second quarter. In this article, we’ll look at the kind of postpaid phone subscriber net additions we can expect from AT&T in the second quarter.

Wall Street analysts expect 300,000 postpaid customer net additions from AT&T in the second quarter, including 150,000 postpaid phone customer net additions due to promotional activities and bundling.

In the first quarter, AT&T lost 22,000 postpaid phone customers compared to its 348,000 postpaid phone customer losses in the first quarter of 2017. These losses were the result of fierce competition among the top four telecommunications companies.

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Peer comparison

T-Mobile (TMUS) added 617,000 postpaid phone net subscribers in the first quarter, whereas Verizon (VZ) lost 24,000 postpaid phone net subscribers during the same period. Meanwhile, Sprint (S) posted 55,000 postpaid phone customer net additions in its fiscal fourth quarter of 2017.

Postpaid handset customers, especially smartphone users, are of particular value to mobile operators. Users of smartphones such as Google’s Android or Apple’s iPhone tend to have relatively high data usage. Hence, they’re the most lucrative customers for mobile operators.

In the next article, we’ll take a look at AT&T’s expected prepaid customer net additions in the second quarter.

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