T-Mobile has topped one million U.S. home broadband accounts, and expects to have between seven million and eight million home broadband accounts by 2025.
If revenue per unit is about $50 a month, or $600 per year, annual revenue at one million accounts is about $600 million. At seven million accounts, revenue is about $2.4 billion. At eight million accounts revenue is about $4.8 billion.
To be sure, T-Mobile offers discounts to customers who also buy T-Mobile phone service. But the hit to gross revenue is balanced by higher assumed retention.
If a big tier-one service provider is looking at new revenue opportunities, it is hard to make the case to bother if incremental revenue is not at least $1 billion per year. In that case, T-Mobile home broadband already is one of those rare “new revenue” successes.
