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2014 Q3 Carrier Earnings Analysis

2014 Q3 Carrier Earnings Analysis

Carrier reports by Cannon Group

November 2014

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As part of our ongoing vendor knowledge process, Cannon Group reviews Q3 earnings in 2014 for AT&T, Sprint, T-Mobile and Verizon.

We use this information to get a macro view of carrier financial health. In addition, when working and negotiating on behalf of our clients, it helps us to understand the carriers’ positioning, as well as the pressures that both carrier and account teams face with regards to margins and revenue.


AT&T Sprint T-Mobile Verizon
Total Revenue ($mm) 32,957
(Up from 32,575)
(Dn from 8,789)
(Dn from 7,185)
(Dn from 31,355)
Wireline Revenues 14,615
(Dn from 14,637)
(Dn from 746)
N/a 9,576
(Dn from 9,631)
Wireless Revenues 15,423
(Up from 15,148)
(Dn from 7,087)
(Up from 5,484)
(Up from 18,078)
Wireline Capex 2,604
(Up from 2,516)
(Up from 66)
N/a 1,464
(Up from 1,345)
Wireless Capex 2,636
(Dn from 3,480)
(Up from 1,276)
(Up from 940)
(Up from 2,771)
*Based on reports by Morgan Stanley


A few highlights from the earnings reports:




  • The UnCarrier’s strong operational performance has continued into Q3, with all data indicating a strong finish for 2014.
  • As VoLTE emerges in the U.S. T-Mobile covered 107M POPs at the end of 2Q, but the company now covers more than 200M POPs.
  • Currently, carrier network growth is struggling to accommodate rising data usage across the industry. This is especially true for the UnCarrier (see T-Mobile Has the Highest LTE Data Usage). Luckily, T-Mobile seems to be rising to the challenge…
  • Regarding LTE, T-Mobile has made leaps and bounds (see T-Mobile is Next in Line to Expand LTE), with its 4G/LTE coverage reaching 250M POPs – and is headed to 300M with the MetroPCS and 700 integration progressing well.
  • It remains to be seen how T-Mobile’s new WiFi equipment offering will affect revenues (see T-Mobile Offers Free WiFi Equipment to Improve Network Performance).


  • Strong subscriber results were a notable part of Q3 wireless and wireline results for Verizon, but financial results were less than expected. Still, recent pricing changes should make the carrier more competitive in the market place.
  • Verizon Edge will have an unknown impact going forward, despite an overall strong outlook for Q4. So far, the Edge program has a 12 percent take rate. Management highlighted that take rates for the installment plan could more than double in the fourth quarter.
  • Verizon recently announced plans to offer WiFi calling in 2015 (aka Voice-over-WiFi, or VoWiFi) to complement other services, such as its existing 3G voice services and promising VoLTE networks, rather than filling any performance holes in their networks (see AT&T and Verizon Will Offer WiFi Calling in 2015).


Download the full Morgan Stanley reports below:

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