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The statistic highlights AT&T’s Mobility ARPU(Average Revenue Per User ) from Q4 FY 2016 to the latest quarter.
An American multinational conglomerate, headquartered in Texas, is the world’s largest telecommunications company and largest provider of mobile and fixed telephone services. AT&T has also diversified itself into mass media segment after the acquisition of Warner Bros, which made them the largest media and entertainment company in terms of revenue. Out of 50 states, AT&T covers more than 90% area in 36 states, which depicts the largest subscriber base across U.S. AT&T also operates across Mexico and 11 countries in Latin America and the Caribbean.
The average revenue per user (ARPU) is the measure of the revenue generated per user. It is a non-GAAP which measure which shows the company’s operational performance. It helps the investors to know how well the company is utilizing its resources by measuring the marginal profit and unit cost. For any telecom company, ARPU defined as wireless service revenues during the period divided by average wireless subscribers during the period.
AT&T’s postpaid phone-only ARPU overall increased by 2.5% in 2016 with a mark of $59.20 in Q4 2016. In installment plans offered by the company, users usually pay for devices in monthly installments, and growth occurs when customers keep their smartphones for a longer period without upgrading.
AT&T is following its historical accounting method of revenue recognition – ASC 605 and going to adopt new U.S. accounting standards as required that deal with revenue recognition – ASC 606. The company witnessed a linear growth till Q3, then reported a downfall in Q4 of 2.55% YoY.
AT&T’s postpaid phone-only ARPU continued to trend lower due to the continuous offering of unsubsidized plans and an increasing shift towards the unlimited offerings, which was limiting the overage fees. While reported ARPU decreased by 8.6% in quarter one versus the prior-year quarter to $53, due to a change in accounting method, the decline stood at about 1.9% on a comparable basis.
Q2 reported the impact of revenue recognition and change in policy on Federal universal services fees (USF) and continuous efforts of shifting on no-overage plans, observed on postpaid service ARPU. Postpaid phone-only ARPU decreased by 7.1% versus the year-earlier quarter.
Although, the earned total wireless revenues were $17.9 billion in Q3, up 3.3% YoY, due to an increase in equipment revenues and company had a net loss of 232,000 postpaid subscribers due to tablet losses, the postpaid phone-only ARPU decreased 5.1% versus the year-earlier quarter.
In the last quarter, total wireless revenues were $18.8 billion, down 2.1% year over year due to a decline in equipment revenues, which was mostly offset by an increase in service revenues. The company had 13,000 postpaid net adds with gains in wearables and phones mostly offset by tablet losses, the postpaid phone-only ARPU decreased 4.1% versus YoY.
For postpaid, ARPU growth seems linear throughout the year. Starting in Q1, the wireless service revenue went up by 2.9% YoY to $13.8 billion, due to overall net subscriber gain of 80,000 postpaid phone, after offsetting 204,000 postpaid net losses with losses in tablets offsetting gains in wearables and phones. Postpaid phone-only ARPU increased by 3.7% versus the year-ago quarter.
With some subtle improvements, the wireless service revenue went up by 2.4% YoY due to 72,000 postpaid phone net adds, which increased the postpaid phone-only ARPU by 2.2% versus the year-ago quarter. Last quarter observed a slight increase of 0.4% versus the year-ago quarter in the ARPU as the revenue went up to $13.9 billion, up by 1.8% YoY, and the postpaid net adds also increased to 1,35,000 with gains in wearables and phones more than offsetting losses in tablets.
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