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Verizon Wireless struggles through poor first quarter

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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

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81 Comments

1. Chromemember posted on 20 Oct 2010, 01:46

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

2. easytochris posted on 22 Apr 2010, 16:09

agreed

3. PapaJay224 posted on 22 Apr 2010, 16:14

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**

6. Fallout posted on 22 Apr 2010, 16:27

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

7. jd829 posted on 22 Apr 2010, 16:32

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

11. Striker13084 posted on 22 Apr 2010, 16:51

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

14. Fallout posted on 22 Apr 2010, 17:09

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

16. DOGIEFRESH posted on 22 Apr 2010, 17:37

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....!!!!!

19. PapaJay224 posted on 22 Apr 2010, 17:56

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.

20. whocares posted on 22 Apr 2010, 17:59

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

26. Fallout posted on 22 Apr 2010, 18:31

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?

28. YouLostTheGame posted on 22 Apr 2010, 19:09

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

31. Fallout posted on 22 Apr 2010, 19:19

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

35. JackFace posted on 22 Apr 2010, 19:43

LMAO!

39. phoneguy posted on 22 Apr 2010, 21:32

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

41. vzwtechbill posted on 22 Apr 2010, 21:56

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!

45. DOGIEFRESH posted on 22 Apr 2010, 23:03

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....!!!!

46. tuminatr posted on 22 Apr 2010, 23:41

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

47. htc_prep posted on 22 Apr 2010, 23:44

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...

51. TitanArmada posted on 23 Apr 2010, 06:09

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

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