T-Mobile’s Average Revenue Per User (ARPU) (2016 – 2022)

This statistic highlights T-Mobile’s Average Revenue per User, for Branded post-paid phone and Branded prepaid phone categories.

T-Mobile provides wireless prepaid and post-paid services to around 102 million customers worldwide. The company also deals in wireless devices and accessories that are sold at affordable prices and supplied through a wide range of channels. 

What is Average Revenue Per User (ARPU)?

Average Revenue Per User helps measure the profitability of a product in terms of the money that is generated by each of its subscribers/ users. A simple way of calculating ARPU is to divide the total revenue generated by the number of users, or subscribers.

This figure has a wide range of uses but most often, it is reported by companies in the telecom and media sector. A company’s management, or potential investors look at this metric to get an idea of which particular products in the company are performing best. It also gives a good idea of the general demand of a product, or service in the markets.

T-Mobile’s Average Revenue Per User

T-Mobile’s Average Total Revenue per User has gone up from $83.8 to $87.6 between Q1 2016 and Q3 2021, which depicts an overall increase of 4.5%. It declined by $0.4 between Q4 2019 and Q1 2020. In Q2 2020, it saw an increase of 2.2%, as it broke the $85 mark. In the previous quarter, this figure stood at $83.9. It again jumped up by $1.2 in Q3 2020, resulting in an Average Revenue Per User of $87.

However, the ARPU marginally declined in Q1 2021 when it reduced to $85.1 from $85.9 in the previous quarter. Since then, T-Mobile’s Average Total Revenue per User has been on a rise and in Q3 2021, it stood at $87.9. When compared on a year-on-year basis, the ARPU in Q3 2021 was 1.03% higher than the ARPU in Q3 2020.

The consumers of T-Mobile are of two different categories: those who avail the post-paid phone services, and those who avail prepaid services.

Branded Post-Paid Phone ARPU

Post-paid services refer to those services where the consumers pay the required amount after availing all the services that they wish to. The total cost is generally paid after a fixed amount of time, for example on a monthly or quarterly basis.

T-Mobile’s Average Revenue per User from Post-Paid phones has increased from $46.2 to $48.1, between Q1 2016 and Q3 2021, which shows an increase of 4.2%. Although it has been on a constant rise over the past few years, the Average Revenue per User from Post-Paid phones in Q3 2021 was 1.02% lower than that of Q3 2020, when it was $48.1 and $48.6 respectively. Overall, it has varied in a close range between $45 to $48. 

Branded Prepaid Phones ARPU

In Pre-Paid services, the customer has to pay the required amount before availing any services. This service is limited in nature, because one can not avail any other service that is not mentioned in the pre-paid services offer.

The Average Revenue per User from Pre-Paid services has gone up by 5.1% between Q1 2016 and Q3 2021. It shows great variance between the quarters, but remains tied to a close range between $37 and $39. In Q3 2021, it stood at $39.5 as compared to $38.5 in Q3 2020, thus depicting an increase of 2.5%.

Overall, T-Mobile’s Average Revenue per User has increased by 4.5% since 2016, which depicts greater customer satisfaction. The above data also concludes that the majority of the Average Revenue per User comes from Post-Paid phone services, thus making it the company’s major revenue contributor.

About T-Mobile

T-Mobile provides wireless services to post-paid and prepaid customers which account for a total of 102.1 million consumers. The company also generates revenue by providing wireless communications services to these customers at very affordable prices, which includes a wide selection of wireless devices and accessories. The company’s majority expenditure is concerned with operating and escalating its network, providing a full range of devices, attaining and retaining high-quality customers, and reimbursing employees.

It provides services, devices, and accessories across its leading brands, T-Mobile and Metro by T-Mobile, through its owned and operated retail stores, as well as through its websites. T-Mobile also sells devices to dealers and other third-party distributors for resale through third-party retail stores and a range of third-party websites.

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