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Verizon reports a drop in postpaid phone subscribers for the first quarter of 2017

Posted: , by Alan F.

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Verizon reports a drop in postpaid phone subscribers for the first quarter of 2017
Verizon released its first quarter earnings report today. The nation's largest carrier had revenue from January through March of $20.9 billion, which was 5.1% lower than what Big Red grossed a year earlier. Verizon blamed the decline on a drop in revenue received from overages, the cost of promoting the business, and a decline in the number of postpaid customers. Of the 307,000 postpaid customers that left the carrier during the three month period, 289,000 were phone-related customers which is the holy grail of the industry. Still, postpaid phone churn came in under .90% for the eighth consecutive quarter. 49,000 smartphones were added to its retail postpaid phone base.

During the first quarter, the amount of traffic on Verizon's LTE network rose 57% year-over-year. Operating income for the wireless sector amounted to $7.1 billion. Based on total revenue, operating margins were 33.9%. First quarter non-GAAP EBITDA came to $9.4 billion, a decrease of 7.5% year-over-year.

Things do look brighter for the near future. Back in February, the company re-introduced unlimited data and it "positively changed the trajectory of customer additions," according to Verizon. Since Verizon Unlimited was first offered to consumers, the carrier has added 109,000 postpaid subscribers.

"Our first-quarter results again demonstrated that customers value a high-quality network experience. To build on our loyal customer base and the third-party recognition we have received for network leadership, we extended our wireless and fiber network capabilities, began offering an unlimited pricing option and expanded our opportunities in new markets. We’re executing on strategies to capture future growth and create long-term shareholder value."-Lowell McAdam, Chairman and CEO, Verizon

source: Verizon

18 Comments
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posted on 20 Apr 2017, 14:11 8

1. LyannaStark (Posts: 87; Member since: 07 Apr 2017)


They're dropping customers because their prices are ridiculous.

posted on 20 Apr 2017, 14:16 7

2. Unordinary (unregistered)


I have Verizon. f**k them. If one of you slimeball Verizon execs are reading this for god knows why, f**k you. I'm going to TMobile come September.

posted on 21 Apr 2017, 08:55

18. TBomb (Posts: 821; Member since: 28 Dec 2012)


I'm waiting for the phablets (V30 looks to be for me as of right now) in the fall to make the same move.

posted on 20 Apr 2017, 14:19 2

3. Acdc1a (Posts: 347; Member since: 21 Jan 2016)


All of this is courtesy of T-Mobile and Sprint to a lesser degree. Verizon deserves many more quarters just like this one. Smart customers already know that the gap between Verizon and T-Mobile is closing further every day.

posted on 20 Apr 2017, 14:24 1

4. nikhil23 (Posts: 81; Member since: 07 Dec 2016)


I agree that T mobile and sprint are very cheaper but I heard that verizon has very good coverage and strong signal. I personally use AT&T. Not a great service but definetely the signal quality is better than t mobile

posted on 20 Apr 2017, 14:32 1

5. Acdc1a (Posts: 347; Member since: 21 Jan 2016)


That's nonsense. Wireless is still user specific. I'll take T-Mobile in my area over the other 3 by a wide margin.

posted on 20 Apr 2017, 18:34 2

9. Bernoulli (Posts: 4292; Member since: 01 Sep 2012)


Your comment is the one that makes no sense, wireless is still user specific? You'll take t mobile, why though? At least the other bloke had coverage as an advantage.

posted on 21 Apr 2017, 05:57 2

12. Acdc1a (Posts: 347; Member since: 21 Jan 2016)


Coverage locally IS the reason I'll take them.

posted on 21 Apr 2017, 08:40 2

15. TechieXP1969 (Posts: 13490; Member since: 25 Sep 2013)


Exactly. T-Mobile coverage and signal strength is terrible for 4G.

In my area, T-Mobile has a very high usage. When I am at the office downtown, my data speeds are fast and furious. But when I drive home, which is about 3 miles away, the data comes to a crawl.

Its so slow, that simple web pages with no media take more than 2 mins to load.

So I have a T-Mobile Cellspot in my house and now I get crazy high speeds.

But with Verizon I don't need that. My iPhone is on VZW and it always has more bars, except when I am at home. My iPhone drops from full to 2 or 3 bars and the data is slow.

But VZW pricing is ridiculous. On T-Mo I pay for 3 lines and my 4th is free at $160 per month. On VZW those same 4 lines before they and a deal last month was more than $200.

Big Blue (ATT) and Big Red(VZW) are to expensive for their crowded network.

posted on 21 Apr 2017, 08:42 2

17. Bernoulli (Posts: 4292; Member since: 01 Sep 2012)


Thank you for specifying and not jus blurting out random and inconclusive things, much appreciated.

posted on 20 Apr 2017, 14:40

6. SleeperOne (Posts: 370; Member since: 25 Feb 2017)


Make a postpaid plan your customers care about, and then kill it off shortly thereafter.

posted on 20 Apr 2017, 15:33

7. longboardluv (Posts: 16; Member since: 21 May 2012)


Verizon has had speeds so slow that you can't even view images on Facebook in my area for over a year now. They told me the tower in this part of town is at capacity and can't be expanded. This is a tech hub city and they have totally dropped the ball. Verizon deserves big losses they aren't providing a good service.

posted on 21 Apr 2017, 07:58

14. Panzer (Posts: 37; Member since: 13 May 2016)


When I left Verizon for ATT I was getting 250 kbps download on LTE with the tower a 1/2 mile away. Fired up my new Nexus 4 without LTE and was getting 6 mbps download. Between horrible speeds limited phone selections I will never go back to a CDMA carrier.

posted on 20 Apr 2017, 15:48

8. jeroome86 (Posts: 1845; Member since: 12 Apr 2012)


People are catching on. Good for them. Hey Verizon. Go bleep yourself. Never again.

posted on 20 Apr 2017, 21:05

10. noerdlinger (Posts: 13; Member since: 20 Jul 2014)


As a VZW employee, saying shiz like "Verizon deserves many more quarters just like this one...," really?
A lot of really great people have been losing their jobs at VZW because of T-Mobile's race to the bottom. Your comments are tone deaf, at best.
Yeah, my company's leadership is crap right now and we're not competitive, but don't wish such negative b.s. on the people working there.
Karma is a beyotch. Careful.

posted on 20 Apr 2017, 22:45 4

11. Scott93274 (Posts: 5231; Member since: 06 Aug 2013)


I don't wish bad things on the employees, but preloading software that users do not want, sticking your brand/logo in places it has no business being, immediately start developing an app that collects user data the moment Trump made it legal for them to do so, they drag their feet with OS & security upgrades, I left Verizon over a year ago and I'm still getting emails and actual mail from VZW and it wont stop. If they want my business then they'll have to start respecting consumers, start meeting their demands, and cut the BS that I listed above. I've moved to Google Fi, and thus far, I've saved over $700. With the money I saved, I could easily afford a new flagship every year, That's why Verizon is/and will continue to bleed customers.

posted on 21 Apr 2017, 06:02

13. Acdc1a (Posts: 347; Member since: 21 Jan 2016)


You choose where you work. You have chosen a greedy anti-customer company. So long as your company continues to ignore what customers want they deserve to bleed customers.

posted on 21 Apr 2017, 08:42

16. applesnapple93 (Posts: 53; Member since: 06 Jan 2016)


I'm going to be honest, my cellphone is my #1 tool being I work in IT and my phone needs to work. I am willing to pay the extra few dollars for verizon to remove the worry in my mind that my phone may not work somewhere. had tmobile and at&t and they simply weren't verizon. Only comparable reception I had to verizon was project-fi but my experience with it domestically was limited, it was purchased for international travel and canceled upon return.

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