Service provider contracts are becoming a more important piece of the overall contract landscape as customers increasingly switch providers.
While AT&Ts and Verizon have long been considered two of the top providers in the industry, the latest data from Tracxn, a provider of industry data, shows that a new contract for AT&ts contract could offer an advantage to the likes of Verizon and T-Mobile.
The firm says that AT&t will have an estimated 5.9% commission increase for the first three months of the deal, which includes a $1 billion cash payment.
Verizon will get a $2 billion commission increase over the same period.
T-Mobile will get an estimated 1.4% commission for the period, and Verizon will receive a 2.5% commission, the data shows.
The biggest contract increases in the TracXn data are for AT-T, Verizon and Sprint, the firm says.
At the other end of the spectrum, the biggest commission increases are for T-mobile and AT&s.
For AT&’s contract, Trac xn estimates that AT &ts will have a 5.7% commission hike, which is about a 3% increase from its contract with T- Mobile.
AT&t is already getting a commission increase of 1.6% for the second quarter, and the latest Trac data shows the company’s commission increases for the two subsequent quarters will be roughly 1.5%.
For Verizon’s contract the firm expects the company to have a 1.9%, 2.6%, 3.0% commission bump over the first two quarters of the year, and a 1% commission jump for the three-quarter period.
Verizon’s deal is more favorable to the firm than AT&tm contract, which offers a 3.1% commission boost.
The Trac Data firm says AT&m contract is about half the size of Verizon’s, but the carrier will get 5.5%, 4.5, 5.0%, and 4.1%, respectively, of the increase.
Verizon is also expected to see a 5% increase in its contract, and T&m will get 2.8%, 3% and 3.6%.
For Sprint, it is more of a 2% increase.
For T-Mob, it’s a 1%.
For Sprint’s contract it is a 2%.
The data is from Trace, a firm that tracks and analyzes contracts.
Trac was founded in the early 2000s by Jefferies analyst David Tisch and the firm now has over 20,000 employees across the United States.