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Verizon Wireless struggles through poor first quarter

Posted: , by Alan F.

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Verizon Wireless struggles through poor first quarter
Verizon Wireless had a poor first quarter. Things were so bad for the nation's largest carrier, that the number of new postpaid contract accounts plunged by 67% from the prior year's quarter. For the first time ever, the company was forced to rely on the lower paying pre-paid customers brought in by resellers to make up for the drop in customers signing contracts. And while 1.5 million new customers were added in the three months, bringing Verizon's leading total to 92.8 million (AT&T is second), 1.3 million of those came from resellers such as TracFone that offer discounted services to students and those facing belt tightening during times of economic woes. Because those accounts bring in fewer dollars, as Bernstein analyst Craig Moffet puts it, "The pressing question, of course, is whether these gains are beginning to cannibalize Verizon's far more lucrative post-paid business." For the first quarter, Verizon Wireless added just 423,000 new customers on contract. The average Verizon mobile customer spent $50.95 monthly, the same as last year. Churn was 1.07% and while Big Red usually has the lowest such figure among U.S. carriers, the number for the last quarter matched the churn rate produced by AT&T. The numbers might pick up next quarter as Verizon is expected to launch the HTC Droid Incredible, its latest Android model. The handset has been the recipient of outstanding reviews with many calling it the best Android cellphone currently available.

source: WSJ, NYTimes

81 Comments
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posted on 20 Oct 2010, 01:46

1. Chromemember (Posts: 8; Member since: 08 Dec 2009)


I'll be the first to do it since no one else will. HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA, AT&T had a great 1st quarter.

posted on 22 Apr 2010, 16:09

2. easytochris (Posts: 126; Member since: 21 Jan 2010)


agreed

posted on 22 Apr 2010, 16:14

3. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)


Whatever, exceeding 100 million customers is poor? how many more customers can you get? Our ARPU was higher! cost per customer was LOWER! customer base was higher! and STILL maintained not to lose barely any customers. This post is stupid heres the numbers to View yourself! VZW AT&T 1.5M 1.9M 284K 586k 423K 512K 5.9% 10.3% $50.15 $ 49.81 1.07% 1.07% $27.09 $27.64 46.0% 44.5% 100.1M*** 87.0M**

posted on 22 Apr 2010, 16:27

6. Fallout (Posts: 20; Member since: 22 Apr 2010)


Are you really, really defending a multi-billion dollar worldwide conglomerate? Dude, go outside and get some sun fanboy.

posted on 22 Apr 2010, 16:32

7. jd829 (Posts: 155; Member since: 24 Feb 2010)


Would've been better had they not sent the government $1 billion

posted on 22 Apr 2010, 16:51

11. Striker13084 (Posts: 128; Member since: 30 Mar 2009)


@fallout verizon is not "worldwide" nor is it a "conglomerate". Go back to school and learn some vocabulary.

posted on 22 Apr 2010, 17:09

14. Fallout (Posts: 20; Member since: 22 Apr 2010)


It is dumbass, because it's partially owned by Vodaphone. Looks like YOU need to go back to school.

posted on 22 Apr 2010, 17:37

16. DOGIEFRESH (Posts: 302; Member since: 15 Jul 2009)


Wow this must be devastating for the fanboys, now with those numbers slow-rizon must be even more desperate to get the iphone and wait until the next one is launched in june, poor fanboys got tough days ahead....!!!!!

posted on 22 Apr 2010, 17:56

19. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)


Vodaphone is a majority Share holder and a partner, NOT VERIZON. They are "A" MOJORITY SHARE HOLDER (NOT THE MAJORITY SHARE HOLDER) You need to go back to School...Youd figure if you were goiong to slam someone on a forum you would know what your saying.

posted on 22 Apr 2010, 17:59

20. whocares (Posts: 235; Member since: 19 Dec 2009)


I need to be schooled on what Mojority means. Seriously Verizon and Att have slow months? in this economy its not surprising.

posted on 22 Apr 2010, 18:31

26. Fallout (Posts: 20; Member since: 22 Apr 2010)


Bitch please. You're telling me to go to school and you misspell "majority" as "MOJORITY"? And like I said, it's worldwide if Vodafone is located in the UK, right? Still haven't got that sun have you?

posted on 22 Apr 2010, 19:09

28. YouLostTheGame (Posts: 441; Member since: 11 Dec 2008)


You're correcting his spelling mistakes, and you use the wrong form of "son", son? Tell me about it, BITCH!

posted on 22 Apr 2010, 19:19

31. Fallout (Posts: 20; Member since: 22 Apr 2010)


Look at post #6. You really did lose the game loser.

posted on 22 Apr 2010, 19:43

35. JackFace (Posts: 190; Member since: 03 Nov 2009)


LMAO!

posted on 22 Apr 2010, 21:32

39. phoneguy (Posts: 192; Member since: 08 Jan 2009)


Actually, you should get your facts straight. Verizon communications is the Majority holder and Vodafone is the minority. VZ owns 55 percent.

posted on 22 Apr 2010, 21:56

41. vzwtechbill (Posts: 175; Member since: 16 Mar 2009)


Desperate to get the iwhat? 4/29....things are going to get INCREDIBLE! 8MP camera, large touchscreen, 1gz processor, AND America's most reliable network? Only question I'm asking is why bother with the Nexus 1 after this BEAST launches?!? Apple and proprietary lockdowns suxor! Free yourself! DROID DOES!

posted on 22 Apr 2010, 23:03

45. DOGIEFRESH (Posts: 302; Member since: 15 Jul 2009)


Yeahhh fanboy very desperate, numbers don't lie slow-rizon might get whatever but without what people likes is crap........seems like those kick ass comercials didn't paid off lol....!!!!

posted on 22 Apr 2010, 23:41

46. tuminatr (Posts: 774; Member since: 23 Feb 2009)


despite all the strange comments both companies had poor sales q1 2010. I think the economy has caught up to the wireless carriers

posted on 22 Apr 2010, 23:44

47. htc_prep (Posts: 303; Member since: 09 Oct 2009)


Verizon is a part of Vodafone... which... would... at least make the world wide part correct... but it is funny the dedication to this company...

posted on 23 Apr 2010, 06:09

51. TitanArmada (Posts: 5; Member since: 17 Apr 2010)


Correct!!!! There was a law passed through house/senate that does not allow and over seas company to own more than a certain percentage (i think it was between 25 and 35%) of an american company. Vodaphone and Deutch Telecom came to some issues with this at that time for their share holdings in VZE/TMO respectively

posted on 23 Apr 2010, 06:23

52. Schmao (Posts: 362; Member since: 05 Jul 2009)


@ Fallout Obviously you need to go back to school because according to you VODAPHONE is worldwide since it partially owns verizon. Verizon is USA only. FAIL!

posted on 23 Apr 2010, 09:39

55. whocares (Posts: 235; Member since: 19 Dec 2009)


I love how people try to convince everyone that their phone sucks and they should have this one. like anyone is going to make that decision based off a cell phone trolls biased rants.

posted on 23 Apr 2010, 09:46

56. remixfa (Posts: 14255; Member since: 19 Dec 2008)


ur an idiot fallout. being owned by someone, does not make THEM worldwide. Their parent company is european.. they are american. they are NOT the same company, hence they ARE NOT a world wide conglomerate. They run as 2 completely different companies. Vodaphone is a shareholder of VZW, nothing more. And just because u feel its fun to trash a company doesnt make it bad for someone else to defend them. And to put it in perspective, ATT had less than 100k newPOST PAID customers than them... which is all they really care about. You cant win EVERY quarter. Eventually SOMEONE else has to win a quarter. Whats going to be interesting at this point, is how sprint and Tmobile faired, since they had the most agressive plans. Concidering true unemployment is at 17%, its not suprising to see the 2 most expencive carriers slowing down. Will everyone fall flat, or is this going to be the beginning of a new trend?

posted on 23 Apr 2010, 11:51

64. whocares (Posts: 235; Member since: 19 Dec 2009)


PRESTIGE WORLD WIDE WIDE WIDE... haha im sorry it just seemed like the perfect time for a good movie quote

posted on 23 Apr 2010, 18:40

70. omarc26 (Posts: 360; Member since: 05 Dec 2009)


@ stiker13084 yes idiot verizon is worldwide look at http://www.verizonbusiness.com/de/

posted on 24 Apr 2010, 09:46

72. VZWbamf (Posts: 61; Member since: 11 Oct 2009)


Thats Verizon Communications not Verizon Wireless. Seperate companies.

posted on 24 Apr 2010, 15:42

74. PapaJay224 (Posts: 866; Member since: 08 Feb 2009)


@Fallout They are partners, Neither one is a part of another. The company themselves is called Cell-co. its a partnership not a who's part of who. Like they said Verizon is the Majority share holder and Vodafone is the minority. Now think about this for a second, if they were really the same company i.e Verizon, then wouldn't Verizon make it cheaper to roam in U.K or not at all? wouldn't it be the same coverage? Wouldn't they have he same phones as us? wouldn't we have the iPhone since they do? think about that before you spat out of your mouth.

posted on 22 Apr 2010, 16:18

4. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


At&t had a good first quarter...but still #2 like the bastard step child that they are. Sad story...

posted on 22 Apr 2010, 16:39

8. JackFace (Posts: 190; Member since: 03 Nov 2009)


You are an idiot... Verizon was #2 for quite some time...

posted on 22 Apr 2010, 18:07

22. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


The keyword is "was" genius. What planet are you on?...VZW has been #1 carrier for a good while. And im the idiot? Wow

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