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AT&T losing more postpaid subscribers than other carriers, but that is part of the plan

Losing often results in winning, a phenomena AT&T seems to be currently experiencing as they continue to see postpaid subscribers go faster than any of the other 4 major carriers in the USA.
By
January 22, 2017

Losing often results in winning, a phenomena AT&T seems to be currently experiencing as they continue to see postpaid subscribers go faster than any of the other 4 major carriers in the USA. A new survey from Cowen and Company Equity Research shows most people who recently switched to Verizon, T-Mobile and Sprint come from AT&T.

“When asking postpaid subscribers that have been with their carrier (less than) two years which carrier did they previously have, the top answer for current Sprint, T-Mobile and Verizon respondents was ‘previously AT&T’, whereas in previous surveys it’s been more mixed.” -Cowen and Company Equity Research

While this sounds like bad news, it is AT&T’s plan for growth. The carrier has been letting go of customers in exchange for a more lucrative crowd. Many of AT&T’s lost subscribers owned simple feature phones, which equates to a lower ARPU (average revenue per user). Instead, they are focusing on smartphone users who will spend more for services.

Is it all paying off? Well, it seems to be. While postpaid subscription numbers continue to drop, AT&T is still making pretty good money. The carrier’s Q3 report shows $40 billion in revenue, which is a 4.6% increase over the previous year. Net income also rose by 11.2%.

Meanwhile, AT&T continues to be the second largest carrier in the USA. But will it be the case for much longer? How many of you are leaving AT&T to go with other carriers? Why?