T-Mobile’s service revenue
Service revenue is a stable revenue stream for wireless carriers such as T-Mobile (TMUS), Verizon (VZ), AT&T (T), and Sprint (S). In the second quarter, T-Mobile once again led the US wireless sector in YoY (year-over-year) service revenue percentage growth. This marks the 17th straight quarter that T-Mobile has led the sector in this measure. T-Mobile’s service revenue grew by ~6.5% YoY to reach $7.9 billion in the second quarter.
This significant YoY growth in service revenue was primarily due to the growth in the company’s subscriber base in existing and expansion markets, driven by “UN-carrier” initiatives as well as MetroPCS brand.
The prepaid and postpaid components continued to fuel T-Mobile’s service revenue growth in the second quarter. Service revenue in the postpaid segment rose ~7.1% YoY to reach $5.2 billion. Additionally, the prepaid segment also contributed $2.4 billion of service revenue. This revenue stream rose ~2.9% YoY during the quarter.
Performance of other significant US wireless carriers
Now let’s assess the growth in wireless service revenue of the other major US mobile operators in the second quarter. Verizon’s wireless service revenue rose ~0.8% YoY to reach $15.8 billion. Meanwhile, AT&T’s wireless service revenue from its combined domestic operations declined ~5.5% YoY to $13.7 billion in the second quarter. During the same quarter, Sprint’s service revenue from the wireless component declined ~4.6% YoY to reach $5.5 billion.