Bell 2012 Q2: Smartphone Subscribers Now 55% of Postpaid Users

Bell yesterday announced their 2012 Q2 earnings, and in terms of their wireless division, the company noted it was a strong quarter based on the increase of operating revenues and subscriber growth. There are now 7,453,363 Bell mobile subscribers, a 2.3% increase compared to a year ago.

Their wireless operating revenues increased 6.7% to $1.36 billion and service revenue up 6.3% to $1.24 billion, thanks to a larger amount of postpaid subscribers and data usage growth. Bell’s blended average revenue per user (ARPU) was up 4.5% to $55.37, thanks in large part to wider data usage and smartphone adoption.

Postpaid activations dipped to 327,335 compared to 341,645 in the year ago quarter; similarly prepaid activations did too as only 100,930 signed up, compared to 133,255 in the year ago quarter. The reason for the decline was a result of “aggressive acquisition offers” from competitors.

Smartphone activations now represent 55% of Bell’s total postpaid user base, compared to just 38% a year ago. Bell also noted their 4G LTE network is the largest in Canada, covering more than 49% of Canadians in 23 markets across 7 provinces and territories.

Just last week Telus announced their 2012 Q2 earnings and so did Rogers. As more and more Canadians adopt smartphones, it looks like our addiction to data plans continue to drive revenue.