T-Mobile’s service revenue
Service revenue is the stable revenue stream that’s common to wireless service providers. In the fourth quarter, T-Mobile (TMUS) led the US wireless industry in terms of YoY (year-over-year) service revenue percentage growth. This marks the 19th consecutive quarter in which the telecommunications company has led the industry in this measure. T-Mobile’s service revenue rose ~5.6% YoY to reach $8.2 billion in the fourth quarter.
This YoY significant growth in service revenue was primarily the result of the growth in T-Mobile’s branded postpaid and prepaid revenues.
T-Mobile’s service revenue in the postpaid component increased by ~8.0% YoY to $5.4 billion in the fourth quarter, while the service revenue in the prepaid component rose ~1.2% YoY to $2.4 billion.
Performance of other US mobile operators
Now let’s assess the growth in wireless service revenue of the other major US mobile carriers in the quarter that ended on December 31. Verizon’s (VZ) wireless service revenue rose ~0.1% YoY to reach $15.9 billion, while AT&T’s (T) wireless service revenue from its combined domestic operations fell ~3.0% YoY to $13.9 billion. During the same quarter, Sprint’s (S) service revenue from the wireless component fell ~3.0% YoY to reach $5.4 billion.