Verizon reports lowest churn rate in the industry for Q2
With 88.8 million customers. you might expect Big Red to lose a few people here and there which makes its low churn rate more impressive. The carrier says that its 4G LTE coverage, which now blankets 75% of Americans, is responsible for the high customer satisfaction rating. The company notes that it has invested a total of $70 billion into its network since day one, proving that sometimes you get what you pay for. Just last month, Verizon won its third straight J.D. Power and Associates award for customer care.
source: Verizon via Phandroid
Churn is a critical measure of customer loyalty, representing the percentage of customers who leave their wireless providers in a given period. Postpaid contract customers represent the largest customer base for the major wireless companies; Verizon Wireless reported 88.8 million retail postpaid customers out of a total of 94.2 million retail customers in the second quarter of 2012, which ended June 30. Second-quarter financial performance announcements by the nation’s major wireless companies - the latest was released today - included the following postpaid customer churn rates, based on averages for the quarter:
Retail Postpaid Churn
Verizon Wireless leads the way with the nation’s largest 4G LTE network, covering nearly 75 percent of the U.S. population; an extensive lineup of 4G LTE-enabled devices, such as the Samsung Galaxy S® III and DROID INCREDIBLE 4G LTE by HTC; as well as HomeFusion Broadband℠, which provides high-speed, in-home Internet access via the company’s 4G LTE network. Additionally, customers can learn the ins and outs of their favorite wireless devices by taking advantage of free Wireless Workshops, offered in-store and online, as part of Verizon Wireless’ award-winning customer care.
Verizon Wireless has invested more than $70 billion since it was formed - more than $6 billion on average every year - to increase coverage and capacity of its premier nationwide network and to add new services.
For more information on Verizon Wireless products and services, go to www.verizonwireless.com, call 1-800-2 JOIN IN or visit a Verizon Wireless Communications Store.
About Verizon Wireless
Verizon Wireless operates the nation’s largest 4G LTE network and largest, most reliable 3G network. The company serves 94.2 million retail customers, including 88.8 million retail postpaid customers. Headquartered in Basking Ridge, N.J., with 78,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE, NASDAQ: VZ) and Vodafone (LSE, NASDAQ: VOD). For more information, visitwww.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
1. rockstarlive (Posts: 307; Member since: 19 Oct 2011)
Kinda surprised....with all the fees and other new stuff, shared data. hhmm. LTE is the big reason though.
7. jroc74 (Posts: 3630; Member since: 30 Dec 2010)
I'm surprised too especially after the Shared Plans and all the crying going on in forums, blogs, etc.
Now that I think about it.....I am still offered to keep my current plan if I wanna upgrade. Since this is about current customers, the Shared Plans probably didnt effect too many current customers.
I agree about LTE after trying WiMax a few months ago.....ugggh. And I really believe that compared to the other 3, Verizon might have the best overall service as far as reception and coverage. AT&T is right there tho. Sprint and T Mo.....in my limited travel experience.....you have to be in specific areas for their service to be good. Even in a weak reception for Verizon, it outdoes Sprint where I live.
11. Whateverman (Posts: 3157; Member since: 17 May 2009)
I think the effects of the shared plans will be more of a trickle that we may not see right away. People will be upgrading at different times so when the people with unlimited plans are told to either pay more or switch plans the churn may go up just a hair. But I am very interested to see what happens to their subcriber adds in one full quarter of shared plans. My guess is fewer new VZW customers as a direct result of this horrendous plan. (VZW Kool-Aid drinkers need not respond. I hate the plan, and there is nothing you can say that will change my mind. I don't care how many people love the new plan.)
15. NewWireless (Posts: 27; Member since: 08 Jun 2012)
I think you are right, lots of people haven't upgraded yet and when they do, they will in that shock mode. Again People should look around
Check with your company that you or your wife works for you may get a discount through your company.
There are great alternatives, make the switch. I like Sprint cheaper than Verizon, and I like Boost, and Virgin, and Voyager is the new Sprint MVNO, that is the cheapest
16. JunitoNH (Posts: 713; Member since: 15 Feb 2012)
I'm not, just like I was saying about any subject in the blogs. The average person don't read them, don't care. Only tech folks take the time to learn/read more about technology. Most folks truly believe Verizon's share everything are good plans. Especially after seeing all the commercials hit the airwaves.
23. NewWireless (Posts: 27; Member since: 08 Jun 2012)
You are right, its not the network, its the Advertising that works, so Marketing is getting paid very well.
Most people pay their bill and don't look at it or question it. I had a charge for Slacker Radio and I never ordered it and didn't realize I was being charded for 5 months, It was credited but if people did start to care about their phone charges and price plans Verizon wouldn't be able to keep the new plans they launched.
At least ATT offers their original plans still.
30. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)
Verizon also offers their original shared plans...fyi
14. fanboy1974 (Posts: 947; Member since: 12 Nov 2011)
The only issue I have with Verizon is their policy regarding looked bootloaders on Android phones. And Verizon better not pass up on the Galaxy Note 2 or any other phone worth getting.
24. blahb (Posts: 47; Member since: 16 May 2012)
Living and working less than 4 miles from the State Capitol in FL which is an LTE market, I have to disagree with the LTE comment.
I've gone through both the Thunderbolt and Galaxy Nexus the past 2 years and I feel LTE really only works for me about 30% of the time and the other 70% it's just a battery drain. LTE coverage is spotty at best and has been absolutely horrible in both offices I've worked in each having large windows and my current office I can see the Verizon corporate store across the street. Here are typical data results with LTE at my current work:
Infuriating while holding the phone >1 foot from the window looking at the corporate store across the street.
IMO LTE is a marketing tool and still in beta with sub par coverage unless you are directly next to a tower and VZW marketing is forcing people to all their LTE devices. My favorite feature of my last two phones has been the ability to toggle off LTE because 3G or CDMA is faster and more reliable 90% of the time for me.
If the new rumored iPhone doesn't have the ability to turn off LTE there will be some unhappy people and Verizon will see some churn down the line as new iPhone users realize it wasn't their Android phone that sucked battery power but Verizon's subpar implementation of their LTE network and device radios.
2. nnaatthhaannx2 (Posts: 818; Member since: 19 Oct 2011)
Just.... give me my updates a little sooner.. plz?
3. dsDoan (Posts: 208; Member since: 28 Dec 2011)
How do they see 4G covering 75% of the country? Maybe 75% of the population, but no where near 75% of the country:
5. dmckay12 (Posts: 242; Member since: 25 Feb 2012)
They use that wording to confuse people. It covers 75% of AmericanS. There are many variations, but when re-read, they all refer to population.
6. dsDoan (Posts: 208; Member since: 28 Dec 2011)
Maybe I'm just tired.. but I could've sworn it said "75% of the country" when I made my comment.
4. master0fursinz (Posts: 104; Member since: 26 Apr 2010)
i do believe he said Americans as in pops
8. Sprintfan (Posts: 68; Member since: 18 Nov 2011)
Clearly makes sense the most reliable/largest network has the lowest churn. Watch out for Sprint's Network Vision. It is serious buis,
10. kabukijoe (Posts: 63; Member since: 06 Mar 2010)
The nation's most expensive carrier showing the lowest churn rate, even during a supposed "economic crisis"... Color me shocked.
13. NewWireless (Posts: 27; Member since: 08 Jun 2012)
Can't believe everything you read.....
All carreries play with their numbers.... Kinda fishy to me that Verizon chose to wait until after T-Mobile to anouce there churn.
I have heard stories that they don't report people that diconnect their lines, but allow those people to pay off that ETF over a long period of time, then just convert those people to a Verizon prepaid account...... Not sure if they call that churn or not, but doesn't sound like it. I prefer, Voyager Mobile, or Virgin or Boost, since they are all Sprint. Unless you use your data internet web browser on your phone constantly, then you won't notice the difference. My gf used to have ATT, and Verizon, switched to Voyager Mobile, with her Galaxy 2, and is happy as can be. Shared data, I don't think so, there are too many other good cheaper options,
Remember folks, if you are OK with 3g service and speeds, and just need something affordable you can go to WalMart and get their $45 Straight Talk plan for unlimited Everything, and it uses the Verizon 3G network, just the same.
18. PotDragon (banned) (Posts: 214; Member since: 22 Jul 2011)
Not close to OK with 3g speed. It is 2012, only an idiot with an iPhone would put up with 3g.
Not close to OK with a Walmart ANYTHING. Do you wear your $2 flip flops while talking on your Walmart phone? I can picture you, morbidly obese in your khaki cargo shorts with your Walmart life. Enjoy!
Those of us who actually board a plane more often than every 6 months need coverage. That means vzw. Period.
20. NewWireless (Posts: 27; Member since: 08 Jun 2012)
Straight talk = Verizon Wireless Service for half the cost of Verizon Service.
Walmart doesn't make the phones, They sell the same phones you can buy at a Verizon Store even the RAZR phones.
Not sure how other products Walmart sells has anything to do with the information I provided. A deal is a deal.
As I mentioned, 3G speed the average consumer doesn't need 4G. The average consumer talks and text and uses a few apps. 4G won't speed that process up noticeably.
But carriers love a customer like yourself because they know you will pay for a bloated service.
25. blahb (Posts: 47; Member since: 16 May 2012)
btw Verizon 4G LTE sucks +70% of the time:
While looking out my window in an LTE market at the Verizon Corporate store. I keep my GNex on CDMA because the crappy LTE network. My buddies HSPA+ OneX (no AT&T LTE) consistently blows my GNex phone away everywhere we go. People buy into marketing though...
29. miles16852 (Posts: 183; Member since: 20 Oct 2011)
Straight talk = AT&T (GSM)
Straight talk = Verizon for there (CDMA Phones only)
28. miles16852 (Posts: 183; Member since: 20 Oct 2011)
do use a favor and smoke more of your POT and you will feel better!
26. azrael162 (Posts: 6; Member since: 20 Jun 2011)
Actually, Verizon Wireless reported their churn rate for the second quarter back in July. VZW always reports its quarterly results first out of the four major carriers, then AT&T, followed by Sprint, and finally T-Mobile. VZW just made the announcement they had the lowest churn of the four major carriers, which wasn't possible until all four of the carriers had reported in their results.
17. galaxyisking (Posts: 58; Member since: 18 Nov 2011)
With all that money they made they should reopen the call centers! Or with the record profits....
nah that's not gonna happen so f* u* c* k* Verizon they made themselves richer.
21. NewWireless (Posts: 27; Member since: 08 Jun 2012)
They did open more call centers, unfortunately they helped to open outsourced call centers.
I feel sorry for those that lost their jobs. Verizon Wireless is a private company a lot of people do not recognize that. It is seperate from Verizon Communications. But Verizon Wireless has made enough money and more to keep their direct hire employees, but they know they can farm it out to call center companies that pay minimum wage instead.
19. remtothemax (Posts: 201; Member since: 02 May 2012)
verizon is definately expensive, which sucks
but to be honest, in the...i don't know, maybe five to seven years i have been using verizion
i can count on one hand the number of dropped calls i have had
also, at my university, which is pretty large, there are only two places i have discovered that i don't get reception
they are both like two or three stories underground and it is only two rooms specifically
with att, honestly, i am not trying to rag att or anything
but basically you just have to walk into a building on campus to lose service
i mean, maybe it is just a quirk in the coverage
maybe there are places that this is reversed
but years ago when my dad first got a cell phone we actually started on att, but we didn't (and actually still don't) get service inside our house
i live in so cal, so, i mean, my expereince with att has been kind of sub par
verizion is expensive, but as far as i have expereinced (which could just be chance) they have by far the best service
22. NewWireless (Posts: 27; Member since: 08 Jun 2012)
Different technology penetrates buildings and it could depend on where the nearest tower is. I used to be an ATT/Cingular customer and my service dropped all the time. Verizon does have the best network, when it comes to 3G, their 4G is still in its baby stages but getting better daily.
I actually use more of the free phone call service now, most of my friends use Skype, or oovoo or Tango, or a few other free phone call services. And some of those services give you a free phone number like Google Voice and another company. You could get a T-Mo plan or a Virgin plan with unlimited data and download the free apps, the only catch as long as your friends have the same app the phone call is free. All my friends and family have the app so it works for me.
I just give business related persons, my home phone number which is a Sprint HomePhone service which is $19.99/ month for unlimited calls,
My friend uses Voyager Mobile $39/unlimited everything, and has a Google Voice number to give out for business use. All cheaper than VZW or ATT.