Low churn rate drives Verizon's fourth quarter; carrier promises to be first in the U.S. with 5G

Low churn rate drives Verizon's fourth quarter; carrier promises to be first in the U.S. with 5G
Promising to be the first in the U.S. to deploy 5G, Verizon announced its Q4 earnings today. The nation's largest carrier added 1.5 million net new postpaid subscribers from October through December. While that figure was below the 2 million added during last year's fourth quarter, it beat Wall Street analysts' consensus estimate of 1.42 million additions. For all of 2015, Big Red added 4.5 million net new postpaid subscribers.

During the quarter, Verizon Wireless took in revenue of $23.7 billion, up 1.2% year-over-year. For all of 2015, the mobile operator reported revenue of $91.7 billion which was up 4.6% over 2014. Churn was .96% for both the last three months of the year and for the entire year. That compares to 1.14% for 2014's fourth quarter and 1.04% for the year.

During October through December, Verizon added 906,000 4G LTE smartphones to postpaid customer accounts Postpaid phone additions amounted to 449,000 as the number of featurephone users declined. 7.6 million phones were activated using an installment plan during the fourth quarter. Verizon now has 25 million phones covered by such plans, making up 29% of the handsets used by postpaid customers.

8.4% of the carrier's postpaid subscribers upgraded to a new phone in the last quarter of the year. Overall, there are 73 million smartphones in use on Verizon's customer base. 79% of them are 4G enabled. 90% of wireless data used by subscribers went through the company's LTE pipeline during the fourth quarter. While all of the numbers showed improvement for the period, the average revenue per account was $148.30, down 6.6% from last year's fourth quarter. The figure also failed to meet Wall Street expectations of $149.61.

Verizon says that it is starting to get its network ready for 5G. The carrier expects to hold field trials this year and has gone on record as saying that some sort of commercial deployment will start in 2017. Most analysts expect 5G to debut in 2020.

source: Verizon

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11 Comments

1. tedkord

Posts: 17355; Member since: Jun 17, 2009

Verizon promises to be first with 5g - and to raise prices while lower caps.

2. Justlooking

Posts: 84; Member since: Aug 27, 2014

5Gs is what they charge. I used to work for them and they are overpriced.

4. technitude

Posts: 263; Member since: Dec 19, 2013

I've heard that they are a pretty brutal company to work for. Our company hires a lot of ex-Verizon employees... and the stories I've heard. You always hear "management didn't know what they were doing/asking," but Verizon people have some of the best stories.

5. Hexa-core

Posts: 2131; Member since: Aug 11, 2015

It's always been so.

6. kaintae

Posts: 98; Member since: Dec 14, 2011

I worked for them. i know many people that have worked for sprint, tmobile, authorized retailers, etc...and my wife worked for AT&T for 8 years. I'd say the opposite. My experience there was great; and the people that worked for the other companies all tried applying. I left because I was offered a job...by one of my customers.

3. joeytaylor

Posts: 957; Member since: Feb 28, 2015

But depending upon where you live...there isn't any better except AT&T....and they're not really any cheaper

7. SprintGuy26

Posts: 229; Member since: Mar 21, 2011

why 5G? overseas they have LTE that goes above 200mbps...why not just use 4gLTE ut buit better?...USA always limits stuff...but what ever..long as i can hit 50mbps still ill be happy so go ahead with ur 5G thatll be $1,000 per GB while saying "Best value"

8. Galen20K

Posts: 576; Member since: Dec 26, 2008

I agree completely I'm the biggest Tech geek there is, but do we really "need" 5G at this Point. And some may argue you could say this about any new tech but in this age of diminishing returns, I think 4G and how fast it theoretically can go and how efficient it is now I say we don't need 5G quite yet.

9. Punchy506

Posts: 129; Member since: Jan 10, 2016

5g has higher capacity and that's an improvement I'll gladly take.

10. SprintGuy26

Posts: 229; Member since: Mar 21, 2011

"5g has higher capacity" first off how the hell do u know this? 2nd ANY tower can handle capacity issues IF they upgrade the backhaul this was back in 2013! http://www.dailymail.co.uk/sciencetech/article-2348597/LTE-A-Worlds-fastest-wireless-network-launches-South-Korea--film-fans-download-movie-40-seconds.html and this was just last yearhttps://www.youtube.com/watch?v=2Fya9Yr0uT4 so LTE-A still has a LONG way to go in my book before they even think about moving to the next replacement...

11. PJH_S4

Posts: 17; Member since: Jan 22, 2016

Everyone is entitled to their opinions about mobile carriers, Verizon included. However anyone who knows the mobile phone industry well knows a 1% churn rate is highly enviable; especially in today's saturated and highly price competitive market. You can do all the tests you want and make all the marketing claims you can but churn is really the best test of carrier performance. If you are keeping more of your customers than the other guys, you are doing better by your customers period.

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