
T-Mobile Expects Stable Postpaid Phone Revenue Growth This Year
By Ambrish ShahUpdated
T-Mobile’s postpaid phone average revenue per user
This year, T-Mobile (TMUS) expects its branded postpaid phone ARPU (average revenue per user) to be stable YoY (year-over-year). In the fourth quarter, its branded postpaid phone ARPU fell ~0.2% YoY to $46.29, mainly due to the growing success of new customer segments and rate plans such as T-Mobile ONE Military, T-Mobile ONE Unlimited 55+, and T-Mobile for Business, and a decline in some non-recurring charges. The ARPU reduction was partially offset by a net decrease in promotional activities and higher insurance revenue.
T-Mobile’s average billing per user
In the fourth quarter, T-Mobile reported that its branded postpaid ABPU (average billing per user) fell YoY to $57.66 from $59.88, primarily due to “growth in the branded postpaid other customer base, which has a lower ARPU than branded postpaid phones.” Postpaid ABPU includes service revenue and installment payments made by customers for equipment.