Verizon Wireless struggles through poor first quarter

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

Posts: 8; Member since: Dec 08, 2009

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

2. easytochris

Posts: 126; Member since: Jan 21, 2010

agreed

3. PapaJay224

Posts: 866; Member since: Feb 08, 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**

6. Fallout

Posts: 20; Member since: Apr 22, 2010

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

7. jd829

Posts: 155; Member since: Feb 24, 2010

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

11. Striker13084

Posts: 128; Member since: Mar 30, 2009

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

14. Fallout

Posts: 20; Member since: Apr 22, 2010

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

16. DOGIEFRESH

Posts: 316; Member since: Jul 15, 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....!!!!!

19. PapaJay224

Posts: 866; Member since: Feb 08, 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.

20. whocares

Posts: 235; Member since: Dec 19, 2009

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

26. Fallout

Posts: 20; Member since: Apr 22, 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?

28. YouLostTheGame

Posts: 441; Member since: Dec 11, 2008

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

31. Fallout

Posts: 20; Member since: Apr 22, 2010

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

35. JackFace

Posts: 190; Member since: Nov 03, 2009

LMAO!

39. phoneguy

Posts: 213; Member since: Jan 08, 2009

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

41. vzwtechbill

Posts: 175; Member since: Mar 16, 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!

45. DOGIEFRESH

Posts: 316; Member since: Jul 15, 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....!!!!

46. tuminatr

Posts: 1125; Member since: Feb 23, 2009

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

Posts: 303; Member since: Oct 09, 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...

51. TitanArmada

Posts: 5; Member since: Apr 17, 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

52. Schmao

Posts: 365; Member since: Jul 05, 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!

55. whocares

Posts: 235; Member since: Dec 19, 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.

56. remixfa

Posts: 14605; Member since: Dec 19, 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?

64. whocares

Posts: 235; Member since: Dec 19, 2009

PRESTIGE WORLD WIDE WIDE WIDE... haha im sorry it just seemed like the perfect time for a good movie quote

70. omarc26

Posts: 360; Member since: Dec 05, 2009

@ stiker13084 yes idiot verizon is worldwide look at http://www.verizonbusiness.com/de/

72. VZWbamf

Posts: 61; Member since: Oct 11, 2009

Thats Verizon Communications not Verizon Wireless. Seperate companies.

74. PapaJay224

Posts: 866; Member since: Feb 08, 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.

4. CRICKETownz

Posts: 980; Member since: Oct 24, 2009

At&t had a good first quarter...but still #2 like the bastard step child that they are. Sad story...

8. JackFace

Posts: 190; Member since: Nov 03, 2009

You are an idiot... Verizon was #2 for quite some time...

22. CRICKETownz

Posts: 980; Member since: Oct 24, 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

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