Steve Vachon

Editor’s note: Sprint drives growth with its combined strategy for postpaid and prepaid services, reports Technology Business Research Analyst Steve Vachon. HAMPTON, N.H. – Sprint (NYSE: S) reported its highest retail phone net additions in over two years in 3Q17. Simultaneously building its postpaid and prepaid bases was previously a greater challenge for Sprint due to lack of differentiation between brands and high cannibalization from customers switching between segments to take advantage of the latest promotions and incentives. Sprint altered its go-to-market strategy over the past year to more effectively target specific price points through its postpaid and prepaid...

Editor’s note: AT&T’s latest earnings report shows that the communications giant is relying even more on bundled services amidst industry pressures such as cord cutting, says Technology Business Research Analyst Steve Vachon. HAMPTON, N.H. – Decreasing demand for traditional services and recent natural disasters contribute to AT&T’s lower revenue in 3Q17 AT&T’s consolidated revenue fell 3% year-to-year to $39.7 billion in 3Q17 due to declines across all of the company’s core businesses, with the exception of its International division. Natural disasters also had a negative impact on AT&T’s 3Q17 earnings, contributing to higher operating costs and subscriber declines in...

Editor’s note: T-Mobile One drives phone subscriber growth while the carrier develops adjacent postpaid segments to counter market saturation, says Technology Business Research Analyst Steve Vachon. HAMPTON, N.H. – The announcement of a T-Mobile (NasdaqGS: TMUS) and Sprint (NYSE: S) merger is expected by the end of 2017. The anticipated merger would give T-Mobile nearly the scale of AT&T (NYSE: T) and Verizon (NYSE: VZ) in wireless subscribers and wireless revenue while enabling the combined company to penetrate new markets more effectively through its expanded retail footprint and rural network coverage. Furthermore, T-Mobile would be better positioned to capitalize...

Editor’s note: Inorganic lifts from recent acquisitions boost Verizon’s consolidated revenue. HAMPTON, N.H. – Verizon’s (NYSE: VZ) consolidated revenue rose 2.5% year-to-year in 3Q17 due to $1.6 billion in sales generated by acquisitions over the past year, largely driven by the closing of the Yahoo acquisition in June. Verizon’s cost efficiencies are also improving, as operating margins rose 160 basis points year-to-year to 22.7%. Improving profitability and maintaining dividends is a key focus as Verizon targets $10 billion in cumulative cash savings by 2021 by tightening spending via zero-based budgeting. The Yahoo acquisition contributed to Oath generating $2 billion...

Editor’s note: As Sprint continues to explore future options, Technology Business Research Steve Vachon offers some ideas after reviewing the communication giant’s latest earnings report. Weakening postpaid churn and average revenue per customer surface as Sprint competes in the unlimited data era, so is a merger with another firm the best way for the company to improve its future? HAMPTON, N.H. – Competitive pressures continue to weigh on service revenue, but Sprint benefits from its leased device strategy, TBR believes. The challenge Sprint faces competing in an unlimited data world was highlighted in 2Q17 as the company was the...

Editor’s note: AT&T deepens emphasis on the public sector and software-mediated network services to improve Business Solutions revenue. And FirstNet looks to be a boost as well, says Technology Business Research Analyst Steve Vachon in the second part of his review of AT&T earnings announced Wednesday. (Part one is linked with this post.) HAMPTON, N.H. – .To improve Business Solutions revenue, which decreased 2.7% year-to-year in 2Q17 due primarily to lower legacy voice and data revenue, AT&T is targeting growth from government customers. In April AT&T announced it is consolidating its government and education operations, which generated about $15...

Editor’s note: AT&T is improving its value proposition as competition within the mobile and video markets intensify, says Technology Business Research Steve Vachon in his review of the tech giant’s latest earnings report. Part two of the review highlights AT&T’s moves to bolster its business segment. HAMPTON, N.H. – AT&T’s consolidated revenue fell 1.7% year-to-year to $39.8 billion in 2Q17 due to declines across all of the company’s core businesses, with the exception of its International division, according to its latest earnings report on Wednesday AT&T’s profitability improved in the quarter, however, as operating margins rose 220 basis points...

Editor’s note: Rival unlimited data plans were unable to stall Sprint’s momentum in the postpaid phone market, says Technology Business Research Analyst Steve Vachon. HAMPTON, N.H. – Sprint’s postpaid strategy focuses on maintaining its position as the price leader among its Tier 1 competitors, its earnings report last week showed. As the industry converges around unlimited data plans, Sprint will be proactive in ensuring its Unlimited Freedom plans undercut competitors on price. Sprint’s strategy paid dividends in 1Q17, as the company continued to outperform AT&T and Verizon in postpaid phone net additions despite the launch of its competitors’ new...

Editor’s note: AT&T’s unlimited data strategy strengthens its position as an integrated solutions provider, but did not generate postpaid net additions in 1Q17, notes Technology Business Research Analyst Steve Vachon. HAMPTON, N.H. – AT&T had a challenging quarter in 1Q17 as consolidated revenue fell 2.9% year-to-year due to declines across all of the company’s core businesses except its International division. A record-low device upgrade rate in the quarter was the primary driver of AT&T’s lower consolidated revenue. Equipment revenue growth will remain an issue for the carrier as bring-your-own-device (BYOD) customers account for a higher portion of gross additions,...