Profits are significantly up for wireless carriers AT&T and Verizon. So if you are looking for better rates, don’t hesitate to ask for those discounts and promotions. They are doing just fine revenue-wise, so the opening to reduce your expenses has arrived.
According to FierceWireless, industry analyst Chetan Sharma issued his report following third quarter. “In 2015 so far, Verizon and AT&T earned roughly $17/subscription/month while T-Mobile and Sprint collectively lost $0.39 on every subscription/month,” Sharma said. Corporate financials revealed that the front runners focused strategically on margins for optimization, while the latter two went after increasing net subscriptions.
Taking a look at EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), AT&T posted a record wireless service margin of 49.4 percent in third quarter 2015; a slight increase from its second quarter at 48.5 percent, and up 6.3 percent from the third quarter 2014’s posting of 43.1. Verizon’s performance beat AT&T’s. Its wireless segment EBITDA margin on service revenues was 56.4 percent for third quarter 2015, 6.9 percent up from its third quarter 2014 posting of 49.5 percent.
In third quarter 2015 postpaid net adds, Verizon secured the lead with 1.3 million postpaid customer additions. However, reports indicate that the bulk of the additions came via tablets (totaling 818,000) versus postpaid handsets which yield higher profitability. For a more extensive breakdown about carrier performance, take a look at this article from FierceWireless.
If you would like to learn more about renegotiating your wireless contract, be sure to request our free guide, The Five Questions You Should Ask When Renegotiating Your Wireless Contract. Simply click here to download your copy today!
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