T-Mobile (TMUS) continues to expect that its branded postpaid phone ARPU (average revenue per user) in 2018 will be generally stable compared to its 2017 ARPU excluding the impact of the new revenue recognition accounting standard.
In the second quarter, T-Mobile’s branded postpaid phone ARPU fell ~1.2% YoY (year-over-year) to $46.52. This YoY reduction in postpaid phone ARPU was mainly the result of its promotional activities targeting new segments, which was partially offset by the positive impact of the continued adoption of its T-Mobile ONE rate plans.
T-Mobile’s postpaid ABPU (average billing per user) was $58.37 in the second quarter compared to $60.40 in the previous year’s period. This YoY reduction in postpaid ABPU was mainly the result of lower lease revenue and reduced branded postpaid phone ARPU.
ABPU includes service revenues and the installment payments made by postpaid users. These installment billings are labeled as equipment revenues.
Installment billings and service revenues are stable revenue sources for wireless carriers such as Sprint (S), T-Mobile, Verizon (VZ), and AT&T (T). T-Mobile’s JUMP! installment plan is similar to Verizon’s device payment plan and AT&T’s Next plan.
T-Mobile exited the second quarter with 75.6 million wireless subscribers. Verizon, AT&T, and Sprint closed the quarter with 152.7 million, 147.3 million, and 53.7 million wireless subscribers, respectively.