Wells Fargo sees Verizon and T-Mobile reporting strong fourth quarter net subscriber additions

Wells Fargo sees Verizon and T-Mobile reporting strong fourth quarter net subscriber additions
Verizon and T-Mobile will report solid net new additions to their postpaid subscribers for the fourth quarter of 2015. That is according to the latest forecast made by the securities arm of Wells Fargo bank. The analysts working for the bank shook up their Magic 8-balls twice as hard as usual to predict that Verizon added 1.52 million net new postpaid customers from October through December. 844,000 of them will be postpaid phone subscribers, according to the forecast. The bank says that Big Red's new Go90 video offering did not contribute to the positive results for the quarter. The analysts say that Verizon will report fourth quarter postpaid churn of 1.08%

Wells Fargo expects that T-Mobile will report that it added 1.29 million net new postpaid subscribers during 2015's last quarterly period. 917,000 of them will be handset subscribers. Postpaid churn will tally 1.46% for the quarter. Leasing, the latest revenue producer that some carriers are using to provide subscribers with new phones, should have brought in $100 million in revenue for T-Mobile during Q4.

The bank, based out of San Francisco, has very positive comments about the nation's third largest carrier. According to its fortune tellers (also known as analysts), T-Mobile had the majority of postpaid handset growth among the four major U.S. carriers during the three months. In addition, Wells Fargo praised the mobile operator's customer additions and churn numbers, and expects it to generate leasing revenue of $1.3 billion this year.

Sprint, according to Wells Fargo, will report net new postpaid additions of 625,000 for the quarter. 300,000 of them will be net new handset accounts. Churn will drop from 2.3% to 2.1%. AT&T will offset the loss of 300,000 in postpaid phone subscribers during the fourth quarter, with  500,000 in tablet additions. However, handset subscribers tend to spend quite a bit more money than those with an account opened just for tablets. The nation's second largest carrier will post a 1.1% churn rate for the fourth quarter, and a healthy EBITDA margin rate of 33.6%

All four carriers should be reporting their fourth quarter and 2015 earnings over the next few weeks.

source: FierceWireless

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7 Comments

1. tedkord

Posts: 17298; Member since: Jun 17, 2009

I hope not for Verizon. They need a slap in the face.

4. bambamboogy02

Posts: 836; Member since: Jun 23, 2012

Why? I love VZW, Treated me well, service works greats. What's there to hate? I work in Data Analytics, and need reliable connectivity everywhere I go, and not just WiFi. VZW has me covered.

2. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I moved from VZW because since I don't travel much, Verizon offered no benefit over TMobile. But I keep one line open just in case and mom uses that. Other than texting, I've had no issues with service. The data is much faster than it used to be when I tried them back in 2005. Even with paying for 4 brand new phones and 2 smart watches, my bill is still $170 less than my bill with VZW paying for several devices. Go T-MOBILE.

5. andynaija

Posts: 1255; Member since: Sep 08, 2012

Lol I'm pretty sure EVERYBODY'S data speed is faster today compared to 2005, and that's for the people that could even afford to HAVE data at the time.

7. Omarc07

Posts: 574; Member since: Nov 12, 2012

Everybody's except sprint ,sprint still has The same data speed it had in 2005 lol

3. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

Verizon and AT&T both need a slap in the face. Sprint just needs an overhaul. T-Mo just needs to get that Band 12 out everywhere and keep from following the Douche Twins carriers.

6. tokuzumi

Posts: 1862; Member since: Aug 27, 2009

Because Wells Fargo is involved, I'm suspecting this data is completely made up, or that Wells Fargo didn't understand the question.

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