US Telecom 2Q26 Update: Everyone won but not everyone played the same game

Research evidence excerpt

18 August 2026

US Telecom

US Telecom 2Q26 Update: Everyone won but not everyone played

the same game

Laurent Yoon

Martin Boruchowicz

Andrew Chung

Another strong quarter on the surface for overall net adds in both wireless and broadband,

but a deeper dive into the reported results reveals several important nuances. The

disclosure changes that began in 1Q26 continue to obscure the full picture of certain

strategic shifts, such as T-Mobile’s continuing focus on ARPA, trading quantity for quality,

and Verizon's quest for quantity while managing costs. Our seven key takeaways:

The wireless market appears to remain strong. Every major player exceeded PPPNA

consensus estimates, while T-Mobile, which no longer reports PPPNA, beat postpaid

account expectations. However, the full picture remains incomplete due to the

disclosure changes. Combined PPPNA for T-Mobile, Verizon, Comcast, and Charter is

approximately 250K higher than in 2Q25. There are at least three possible explanations for

this increase: (1) consumers are taking more secondary lines, (2) T-Mobile experienced a

decline in net adds, and/or (3) a healthier market than anticipated.

Mobile churn continues to decline. In 2025, churn was elevated relative to recent

periods as 36-month device contracts rolled off. The improvement that began in 1Q26

continued through 2Q26. Factors contributing to lower churn include stable subsidy levels,

reduced device switching across the market, fewer price increases, and greater adoption of

broadband bundled offerings.

ARPA trends remain divergent across providers, reflecting differing growth

strategies. Verizon's ARPA remains down YoY, as the company has rolled back price

increases without corresponding value-added enhancements to its existing customer base,

a strategy that has helped drive a return to positive net adds. Meanwhile, T-Mobile and AT&T

grew ARPA by 3.7% (excluding M&A impacts) and 2.2% YoY, respectively.

Total industry broadband net adds improved in 2Q26 versus the prior year. Industry

net adds increased year over year when accounting for the growth of satellite services,

which seems to be expanding the total addressable market by providing an alternative for

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