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This statistic highlights T-Mobile’s Average Billing Per Postpaid User, reported on a quarterly basis from Q1 2016 onwards.
What is Average Billing Per User?
Average Billings Per User (ABPU) describes the average monthly customer billings, including monthly EIP billings and lease revenues, prior to securitization, per consumer. Branded Postpaid ABPU was a significant metric in the course of the movement from classic plans to EIP based plans as it assisted to explain the customer billing relationship in a period which had transformation in customer billings from branded postpaid service revenues to equipment sales revenues.
Postpaid customers generally include customers who are subjected to pay after receiving wireless communications services utilizing phones, high speed internet, wearables, DIGITS (a service that provides the customers to use a number of mobile numbers on any compatible smartphone, wearable or other device with internet connection) or other connected devices, which consist of tablets and SyncUp products. The service revenue of the company by customer category includes 73% Postpaid customers.
T-Mobile’s Average Billing Per Postpaid User
|Average Billing Per Postpaid Users||Q1 2017||Q2 2017||Q3 2017||Q4 2017||Q1 2018||Q2 2018||Q3 2018||Q4 2018|
(All figures are in millions)
Average Billing Per Postpaid User decreased from $59.88 million in Q4 2017 to $57.66 million in Q4 2018, marking a dip of 3.7% on a year-on-year basis. Furthermore, it slightly declined by 0.05% as compared to $57.69 million in Q3 2018, on a quarter-on-quarter basis.
In 2017, the average billing per postpaid users decreased from $61.89 million in Q1 2017 to $60.40 million in Q2 2017, marking a dip of 2.4%. This decline continued as the average billing per postpaid users dips to $59.89 million in Q3 2017, accounting for a decrease of 0.8%. It stood at $59.88 million in Q4 2017, basically unchanged on a quarterly basis.
In 2018, there was again a subsequent decrease in the average billing per postpaid users on each passing quarter. It declined from $60.14 million in Q1 2018 to $58.37 million in Q2 2018, marking a dip of 3%. Additionally, it fell to $57.69 million and $57.66 million in Q3 2018 and Q4 2018, respectively, which was almost a decline of 1%, on a quarterly basis.
The decline in Branded Postpaid ABPU was mainly because of diminished branded postpaid phone Average Revenue Per User (ARPU), lower lease revenues and increase in the branded postpaid customer base with a lower ARPU than branded postpaid phone.
The company believed branded postpaid ABPU provides management, investors and analysts with useful information to evaluate average branded postpaid customer billings as it is indicative of estimated cash collections, including device financing payments, from the customers each month. However, with the passage of time, the benefits of ABPU to management, analysts, and investors have decreased as the remaining classic plan base is insignificant and branded postpaid service revenue and branded postpaid phone ARPU metrics in periods published can be compared. Therefore, the company planned to discontinue reporting ABPU beginning with the Q1 2019.
Founded in 1994 as VoiceStream Wireless PCS, T-Mobile USA Inc is a Delaware corporation. VoiceStream was acquired by Deutsche Telekom AG in 2001 and renamed as T-Mobile USA Inc. in 2002. The company provides services, devices and accessories across the flagship brands, T-Mobile and Metro by T-Mobile, through its owned and operated retail stores, as well as through its websites, T-Mobile app, customer care channels and through national retailers. It provides wireless services to 108.7 million postpaid and prepaid customers as of December 31, 2021, and makes revenue by providing economical wireless communications services to these customers, additionally providing an extensive selection of wireless devices and accessories.
The company completed the merger with Sprint, a communications company providing a comprehensive range of wireless and wireline communications products and services, on April 1, 2020. As a result, Sprint and its subsidiaries became wholly-owned integrated subsidiaries of T-Mobile. T-Mobile’s merger with Sprint greatly enhanced its spectrum position. T-Mobile is on a mission to build America’s best 5G network, benefitting customers with unrivalled coverage and capacity where they live, work and play.
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