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Verizon/AT&T 2014 4th Quarter Adds Expected To Be High While Sprint Struggles

January 9, 2015 - Written By Justin Diaz

According to analysts, Sprint is expected to post new customer adds from the fourth quarter of 2014 that display they had struggled to bring in new customers, thought to come in having added less new net subscribers than they were hoping while Verizon Wireless and AT&T are expected to post new customer adds that show significant growth. Verizon Wireless is expected to post their 4th quarter adds numbers totaling 1.85 million net subscribers, while AT&T is expected to come in under a million at 850,000. If those add numbers are spot on, of all four major carriers, T-Mobile would be posting the highest number of total new customer adds in the postpaid category  as they recently reported adds of 2.1 million new net subscribers.

While Verizon, T-Mobile, and AT&T all seemed to have had a fairly decent fourth quarter in terms of new subscriber growth, analysts at Credit Sussie expect that Sprint will only post net subscriber adds of 250,000 for the fourth quarter, which would put them significantly lower than the other three carriers. Sprint has been struggling to keep subscribers this past year while also finding it hard to add new ones, although the changes they have been making under the leadership of Marcelo Claure does seem to be improving their standings compared to when Sprint was being run by Dan Hesse during his last 3-6 months as CEO.

In addition to once again adding over 2 million new subscribers in a quarter, T-Mobile is also expected to hit their EBITDA guidance for the year of 2014 which is listed at $5.6 billion – $5.8 billion, and if they hit their 2014 EBITDA guidance number than their actual EBITDA is likely to rest at about $1.7 billion, according to Jennifer Fritzsche who is an analyst at Wells Fargo. Fritzsche also states that she believes the iPhone 6 and 6 Plus to have played major roles in the success of T-Mobile’s fourth quarter net adds. For Verizon and Sprint, a large portion of their net adds growth is expected to have been from growth in sales of tablets and other devices according to Credit Suisse.