Elasticity of demandInteresting stats Mike. I did not realize that Verizon's post paid share was more than 40% higher than AT&T's. That makes sense given that AT&T's postpaid ARPU is 20% higher than Verizon's. But that implies that Verizon's postpaid revenue is 17% higher than AT&T's (1.4/1.2). Their EBITDA margins are similar. Surely it would make sense for AT&T to lower their prices towards those of Verizon as the elasticity of demand would mean market share increased to a greater extent than ARPU fell leading to an overall net increase in revenue.
It's also interesting to see the EBITDA margin gap between T-Mobile and the rest. I guess this reflects a high prepaid mix. Sprint's relatively high margin is a surprise given its high churn.
The US Wireless Market in 10 Charts
It's also interesting to see the EBITDA margin gap between T-Mobile and the rest. I guess this reflects a high prepaid mix. Sprint's relatively high margin is a surprise given its high churn.