Verizon vs. AT&T Who Ruled the Quarter?

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Verizon vs. AT&T Who Ruled the Quarter?

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Key metrics to consider Postpaid net additions Average revenue per user (ARPU) Churn rate Earnings Network performance

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Verizon’s Financials Total revenue growth of 3.3% year over year, to $33.2 billion. Adjusted earnings per share of $1.04, up 16.9% year over year. Free cash flow of $5.1 billion. Total revenue growth of 19% year over year, to $39.1 billion. Adjusted earnings per share of $0.74, up 14% year over year. Free cash flow of $5.5 billion. AT&T’s Financials

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AT&T’s average revenue per user (ARPU) declined 2.6%, year over year. AT&T’s ARPU declined

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Postpaid phone-only ARPU dropped as the company moves more customers to it NEXT smartphone upgrade plans. This caused a drop in ARPU but should bring long-term growth. When NEXT plans are factored in, ARPU actually increased by 5.5% year over year. Why AT&T’s ARPU fell

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Verizon doesn’t report ARPU, and instead measures average revenue per account (ARPA). The carrier’s ARPA declined by 5.5% from the year-ago quarter. Verizon’s ARPA declined

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In the past, Verizon combined its devices and service plans into its ARPA calculation, but now those two categories are split, which pushes down ARPA. With more customers switching to device installment plans, ARPA is hurt in the short term. Verizon is looking to the Internet of Things and online video (go90) to help push ARPA back up. Why Verizon’s ARPA Fell

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Churn is the rate at which customers leave a carrier. Both companies have about a 1% churn rate, which is very low. Postpaid Churn Rate

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AT&T added 289,000 postpaid net additions, while Verizon brought in about 1.3 million. Total postpaid subscribers

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Back in August, RootMetrics awarded the top wireless spot to Verizon in five out of six categories, including network reliability, call and data performance, and network speed. This made Verizon the leader in overall network performance for the first half of 2015. Network performance Image source: RootMetrics.

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Which carrier came out on top? AT&T far outpaced Verizon with its year-over-year revenue increase, but failed in a few key areas. AT&T didn’t come close to Verizon’s postpaid net subscriber adds, and its churn rate was slightly higher than Verizon’s. AT&T also falls behind Verizon when it comes to overall network quality, according to RootMetrics. With Verizon adding more postpaid subscribers and maintaining its lead in network quality, the carrier remained the leader in the third quarter.

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