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Service Revenue

Financial glossary · plain-language definition · Financial Statements

The recurring revenue a carrier earns from providing wireless and broadband SERVICE -- the monthly subscription and usage fees -- as distinct from one-time EQUIPMENT revenue (selling phones). Service revenue is the durable, high-margin core of a carrier's business; equipment revenue is largely pass-through at thin margins. Analysts track service revenue growth because it reflects the health of the underlying subscription base, uncontaminated by the lumpy timing of device upgrade cycles. Compare service-scope to service-scope, never a total-revenue figure that mixes in equipment.

Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ARPU · Average Ticket · Book-to-Bill Ratio

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