Verizon Wireless and Nextel Communications Inc. again led the wireless industry in N. Moore Capital Ltd.’s ranking of wireless carriers during the third quarter of this year, with the carriers garnering a first-place tie in the ranking of five select operational metrics with 31 points and just nipping Canadian wireless operator Telus Mobility, which produced a third-place finish with 33 points.
The three operators also represented the top three positions in N. Moore Capital’s second-quarter rankings, with Verizon Wireless and Telus Mobility tied for first and Nextel a close third.
“Some things never change, and Verizon Wireless and Nextel remain in a tight race, along with Canadian cousin Telus at the top of the charts,” said Jeffrey Hines, president of N. Moore Capital.
The rankings cover 21 North American wireless operators and are based on a handful of operational metrics: subscriber growth as measured by penetration gain, average revenue per user, customer churn, pre-interest expense free-cash-flow per subscriber (piFCF) per month and cost of acquisition. Carriers are ranked from first to 21st in each category with the lowest overall score taking the top prize.
Verizon Wireless posted its fourth straight first-place finish in the rankings with 31 total points due to its industry-leading subscriber growth, and top 10 finishes in cost of acquisition, churn and piFCF per subscriber. The carrier’s only non-top 10 finish was a 12th place ARPU ranking.
Following a first-place tie with Verizon Wireless during the first quarter, Nextel bounced back from its third-place showing in the second quarter to pull even with the nation’s largest operator. In addition to its industry-leading ARPU results during the third quarter, Nextel posted second-place finishes in churn and piFCF per subscriber, a fifth-place finish in subscriber growth and repeated last-place cost of acquisition.
Despite slipping from a tie for first to third, Telus Mobility with 33 total points again placed itself well ahead of its Canadian competitors as well as most of the U.S.-based operators. The carrier’s results included an industry-leading customer churn result, fourth-best in subscriber growth, fifth-best cost of acquisition, eighth-best piFCF per subscriber and 15th place in ARPU.
Western Wireless Corp., which bounced back from a disappointing 11th-place finish in the second quarter, placed a strong fourth place in the third quarter with 44 points. The carrier posted a first-place finish in piFCF per subscriber and was in the top 10 in subscriber growth and customer churn, which was enough to offset a 12th-place ranking in cost of acquisition and 14th-place finish in ARPU.
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