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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

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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: 126; 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: 188; 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: 638; 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: 302; 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: 13902; 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: 357; 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

posted on 22 Apr 2010, 18:19

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


Why yes you are... this is how competition works: Companies capitalize on improved technology (innovation). When this happens, consumers flock towards that company and its services it provides therefore creating profit. Other times, mergers occur (Cingular/AT&T or Verizon/Alltel and so forth). When this happens, companies grow overnight (increased profit most of the time). Companies will switch as leaders... it happens that way. You are a moron for posting such bias crap and never giving credit where credit is due (A True Fanboy). Yes, you are still an idiot. When Verizon was #2, was it a sad story? Were they the bastard step child? I hope you took some good notes during this schooling session.

posted on 22 Apr 2010, 19:14

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


If we are talking about actual number of subs, then yes, VZW was #2, however, VZW has consistently been #1 in just about every area of service for quite some time, as evidenced by VAST amounts of third party research. At the end of the day, I could give two shits about the size of a company, I want my service to work, work well, and consistent, and be treated like a valuable customer...all things that VZW excels at. Do us all a favor, and don't go back to school, just kill yourself.

posted on 22 Apr 2010, 19:24

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


@YouLostTheGame: Agreed and Touche'. I was absolutely talking Numbers, not Performance nor Service. I'll give that to you and to Cricket... But, we are talking Economic Numbers in this article.

posted on 22 Apr 2010, 19:32

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


The point is slow-rizon wireless with whatever maps and coverage over bubba ranch in the middle of nowhere got beat up by AT&T...and wait until iphone number 4 is out.....very sad for y'all fanboy slow-rizon need the iphone so bad in order to raise those numbers...!!!

posted on 22 Apr 2010, 21:32

38. coupe68gt390 (Posts: 8; Member since: 16 Nov 2009)


Talk about a fanboy! You my friend are obviously an Iphone/AT&T fanboy!

posted on 23 Apr 2010, 01:06

49. 1987riot (Posts: 5; Member since: 24 Mar 2010)


vzw isnt going to copy the same mistakes at&t did when they sold out to apple, and if at&t was so good why is it that they always copy vzw? just some examples are when the started friends and family who went and copied and made "the a-list" this year when vzw said they would lower their rate plans, guess who copies the #1 provider? yeah at&t. IDK why they charge the same amount for plans as vzw when they dont get half the quality of coverage? and as far as slow-rizon id rather have slow service then non at all. and as for the iphone it was a good phone however were starting to see better OS more customizable OS just that many customer wont know because of all the hype, sad to see people disconnect services and pay up 1200 in ETFs just to spend more money for shitty services but of course customers dont want to hear that because in their minds they think they are the shit because they got the iphone and when the hype settles for them they start to notice what a shitty network this bad ass phone is on but because so and so have the phone they want to be cool as well man oh man. they are some stupid people out there lol

posted on 23 Apr 2010, 08:44

53. jporterweb (Posts: 25; Member since: 17 Jan 2009)


Umm JackFace maybe you should not call people idiots when referring to VZW being #2. If you would remember correctly, VZW was #1 for a long long time, until SBC bought AT&T and merged AT&T Wireless with Cingular. Then in less than 2 or 3 years, VZW acquired a smaller company than AT&T was and got back on top. Not like AT&T was ever #1 on merits. They got bought out and the new company kept the name.

posted on 23 Apr 2010, 09:30

54. BLikens1619 (Posts: 53; Member since: 12 Apr 2008)


Yeah, they had to buy out Alltel to surpass AT&T, and its not by much.

posted on 23 Apr 2010, 09:50

57. BLikens1619 (Posts: 53; Member since: 12 Apr 2008)


@1987riot, you're an idiot, Verizon didn't have Friends and Family until they bought Alltel which is who had the service. T-Mobile was the first to have some sort of friend list so does that mean suckrizon copied them? Dumbass! And as for the lower rates, Sprint was the one to start that and then AT&T and verizon got on board with it. Verizon's rates are higher than AT&T, one example is that if you want an unlimited data plan with verizon, smartphone or not, you're going to pay $29.99. With AT&T on a single plan, they charge $20 for non smartphones and $30 for smartphones for unlimited, and if you have a non smartphone, you can get and unlimited text and web plan for $30. If you're on a family plan and have family unlimited texting, you can get unlimited data for $10/line. So check your facts before shooting off at the mouth.

posted on 23 Apr 2010, 09:53

58. verizonsucks (Posts: 8; Member since: 29 Jan 2010)


I thought TMobile came up with the Fave 5...

posted on 23 Apr 2010, 10:27

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


I see that you in the school of avoidin the facts. To YouLostTheGame's point...let's take size out of the equation and you still have a company that excels in what matters to customers. Nice phones...reliable network...good customer service. You took a paragraph to say what is already evident to try to prove that you are intelligent but this is common knowledge. If overnight growth is what you wanna call it go ahead but it takes revenue to buy out another company. Verizon makes better business decisions than the other carriers (can't speak to int'l carriers) within the US. While other carriers focused on getting the "hot" phones Verizon stayed with a pretty lackluster, mediocre device line up all the while investing into the network so that it had the infrastructure to be able, one day, to run those "hot" phones hittin the market. Smart. At&t on the other hand has the hottest phone (I guess) the iPhone...but doesn't have the network to support it like that type of phone should be supported. Just recently within the last few months added MMS (seriously?). Fast 3G coverage but unfortunately in a very small portion of their footprint even though they use the almighty GSM technology. Customer service was rated dead last. Not smart. Sprint has always seemed innovative but the reality is that they've never done anything new they just rush to put it out first so it looks like they created the technology i.e. 4G WiMAXX which their CEO has clearly stated that it won't be able to compete with the technology of LTE when it is released. At least they are starting to get some decent phones in their line up (EVO is nice) tho and their CS is pretty decent. They lack the revenue tho and are on the verge of either folding or bein bought out. They have to slash prices and give you everything for a cheap price to remain relevent. Too bad. T-Mobile and US Cellular...what's the point of even talking about them. It's unfortunate that T-Mobile got the HD2 that's all I can say. So growth comes from makin a series of good business decisions and then an opportunity arises for what seems like an overnight growth. Coverage, plans or customer service. Not saying that customers don't think that's important but nowadays its more about who has the best phone. Those other things are like icing on the cake. Verizon finally smartened up and picked up some good phones but again...they took the right steps to build the network first to support the latest and greatest. Reliability translates into revenue. People don't mind paying a little more money for quality. I wouldn't say I'm bias...I'm just know the overall picture. I give credit where credit is due. Tryin to undercut a couple that has been leading in several areas for a long time though with an article about how they had a bad quarter...is kinda ridiculous like you "schooling" me apparently. Gettin a degree from Everest University doesn't qualify you to pitch economics.

posted on 23 Apr 2010, 12:10

65. numberonenygfan (Posts: 211; Member since: 19 Oct 2009)


+1

posted on 23 Apr 2010, 17:20

67. tallica05 (Posts: 93; Member since: 26 Dec 2009)


Yeah but At&t had to merge cingular to surpass verizons 70 million back in the moto razors day! Verizon was still nipping at their heels with customers Verizon grew themselves before any mergers.

posted on 24 Apr 2010, 11:57

73. jabowalker (Posts: 5; Member since: 10 Sep 2009)


i worked for tmo when myfaves were introduced, and it was after alltell had already had the my circle.

posted on 24 Apr 2010, 15:48

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


in a kindergarten war just for DOGIEFRESH ill say, Id rather be Slow-Rizon than Gay-T&T.

posted on 24 Apr 2010, 15:53

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


A-LIST was created FAR after Verizon friends and family. At&T wasn't banking on rollover minutes anymore, and they decided to copy VZW. As goes the same for their unlimited plans, the didn't release those for months after Verizon launched unlimited. Now for Sprint they have had some competitive plans but no body likes sprint so who cares.

posted on 26 Apr 2010, 13:40

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


you do realize they were #1 untill vzw bought out its last company right? does cricket even have 5 bars? i thought theres stopped at 2 bars for max coverage.

posted on 22 Apr 2010, 16:23

5. Nobodey (Posts: 28; Member since: 03 Jan 2010)


Good first quarter? Compared to what? The article is still on the front page of PhoneArena.. http://www.phonearena.com/htmls/AT-T-reports-lower-Q1-earnings-despite-2.7-million-iPhones-activate d-in-the-period-article-a_10948.html

posted on 22 Apr 2010, 16:41

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


your mom goes to college

posted on 22 Apr 2010, 19:16

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


LOL! I love that line! But I can't remember the name of the movie for the life of me right now! Help me out bro! Nevermind...good ol' Napolean Dynamite!

posted on 22 Apr 2010, 16:47

10. warhed (Posts: 56; Member since: 07 Mar 2010)


Great, now their gonna nickel & dime us even more! Att had a better quarter because they are taking in revenues from non-phone devices (ipad)... soon, att will more up as well for sprint & T-Mobile, while vzw will stay stagnant....

posted on 22 Apr 2010, 17:06

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


Pretty sure the iPad 3G is not even released yet. WTF are you talking about saying AT&T is making money off the iPads??? That's all Apple until the 3G is released.

posted on 22 Apr 2010, 17:48

18. Mateo8326 (Posts: 472; Member since: 15 Jul 2009)


ATT making money from the network portions duh

posted on 22 Apr 2010, 18:11

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


Mateo... The iPad 3G has NOT been released yet... Therefore, AT&T has not been collecting revenue from the 3G service. The current iPads only support WiFi... no charge whatsoever... AT&T has mad no money off of the iPad at all... yet. Damn people, get a clue!

posted on 22 Apr 2010, 18:28

25. Mateo8326 (Posts: 472; Member since: 15 Jul 2009)


should of rephrase that will be duh

posted on 22 Apr 2010, 17:07

13. aclsmb (Posts: 18; Member since: 03 Sep 2009)


I think all the 4 major carriers should drop their smartphone plan rates by at least $10.00 a month and ideally $20.00 a month. I bet they'd see a lot more sign ups.

posted on 22 Apr 2010, 19:20

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


Yeah, and with those sign ups, an ass-load of network congestion, that would make owning a smartphone a waste of time and money. Don't hate cuz you want a smartphone, but can't afford one. Price is set by supply and demand, basic economic principles.

posted on 22 Apr 2010, 22:00

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


+1

posted on 22 Apr 2010, 22:02

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


that +1 was for YouLostTheGame, won't let me edit to delet.

posted on 23 Apr 2010, 11:44

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


They should join forces with tmobiles prices at&ts speed and verizons coverage. and sprints... uh... colors!

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