Did Verizon’s Wireless Service Revenues Accelerate in Q1?

In this part, we’ll discuss the two most important divisions of Verizon’s (VZ) wireless revenues. The smaller part is the company’s wireless equipment revenues, while the larger part is its wireless service revenues. In the first quarter, Verizon reported wireless service revenues of $16.1 billion—up ~4.4% YoY (year-over-year).

During Verizon’s first-quarter earnings conference call, the company’s management stated that “Wireless service revenue increased by 4.4% mainly due to customers stepping up into higher-priced plans, contribution from the strong net adds late in the fourth quarter and an increase in connections per account.”

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AT&T’s (T) wireless service revenues from its combined domestic operations increased ~2.9% YoY to $13.8 billion in the first quarter. T-Mobile (TMUS) and Sprint (S) haven’t reported their financial results for the same quarter. Analysts expect T-Mobile’s wireless service revenues to grow ~7.6% YoY to $8.4 billion. Sprint’s wireless service revenues are expected to decline ~3.1% YoY to $5.4 billion.