Verizon shrugs off loss of customers who left the carrier during the first quarter

Verizon shrugs off loss of customers who left the carrier during the first quarter
Verizon announced on Tuesday that it had lost 138,000 postpaid phone customers over the last three months. Will the nation's largest carrier miss those who have left the grasp of Big Red? Not if you listen to the company's CFO, Fran Shammo. The executive characterizes those who have moved on from Verizon Wireless as being more interested in pricing than the quality of the network. Shammo says that price-sensitive customers are the ones that Verizon is not going to keep.

Sprint and T-Mobile have been gunning for Verizon's postpaid customers with a variety of deals. Sprint has been heavily promoting a plan that cuts Verizon customers' monthly bills in half while offering the same amount of data each month. And T-Mobile has been running television commercials that are targeted to Verizon subscribers.

For the first calendar quarter, Verizon added 565,000 customers thanks to a slew of new tablet accounts that more than made up for the loss in phone users. Wall Street was expecting the carrier to add 612,000 new subscribers during the period.

source: Bloomberg, WSJ



1. justForTheRecord

Posts: 51; Member since: Jan 17, 2015

" "If the customer who is just price-sensitive and does not care about the quality of the network—or is sufficient with just paying a lower price—that’s probably the customer we’re not going to be able to keep."-Fran Shammo, CFO, Verizon " Or how about listening to your Customers, Mr. Shammo. iPhone 6 - most popular and doesn't have a screen so big, "It requires a purse or man-servant to carry around!" (as I read somewhere else). You missed the boat with Sony Xperia Z3 Compact. Maybe you'll "see the light" with Sony Xperia Z4 Compact? I've got multilple lines I'd love to upgrade from flip but not at the expense of features (ala Lumia 430) or pocket-sized-ness (iPhone 6 Plus). I did notice AT&T got the Z3 Compact ... hmmm ...

16. symo33

Posts: 3; Member since: Apr 22, 2015

So you are blaming Verizon for the design of an Apple product? You do know that if you go to other carriers that the phone is the same size because it's made by Apple. Plus, where are you going to get the Sony phone? It was only released in Japan as of April 20th. Preorder in the US hasn't started yet.

19. g2a5b0e unregistered

You clearly didn't understand the point of his comment. He's blaming Verizon for not carrying more high-end compact devices. I can understand it. I have a friend who was with Verizon who was highly interested in the Galaxy Alpha. She ended up going to AT&T to get it. More selection of phones = better chance of keeping customers.

22. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

They don't carry them because they don't sell. VZW isn't like ATT which just carries a phone whether they sell or not. VZW already has plenty of giveaway phones that have terrible sells. The Xperia is junk IMO and I don't think anyone at VZW would buy it. I mean I wouldn't because even the iPhone 6 Plus is better than the Z4 and I wont even buy an iPhone at all right now. VZW was pushing the Droid by Motorola, but MOTO hasn't been phone focused since the Moto X. They are basically giving them away because they don't sell as good anymore. Everyone who comes into VZW wants an iPhone mostly or a Galaxy S/Note. All a team needs is 2 very good players and a bunch of defenders. VZW has this.

25. symo33

Posts: 3; Member since: Apr 22, 2015

Good point. Why carry a phone that 1% of your customers want? What popular right now? Samsung S6 and iPhone 6. Plus if you do the research, which everyone should do since it's a big purchase, you can order the phone from Verizon. Just because it's not in a store doesn't mean they can't get it. The store I go to didn't have the Nexus 6 in stock because it won't be a big seller, but they told me that they can order it. One last thing, with the amount of stuff people do on their phones, they want a big screen, compact phones are going away.

35. Notsosuperdave

Posts: 29; Member since: May 15, 2013

VZW has the Xperia Z3v ... i know the Bloat-ware.. but awesome camera, great display, ..Sony makes good devices. But i haven't sold very many, only had a few requests. More LG G3's, DROID Turbo's, and Galaxy S5's, than anything. The Blackberry Z10 was an awesome device too...

2. Augustine

Posts: 1043; Member since: Sep 28, 2013

Is Fran's middle name Cleopatra, the queen of denial?

32. corporateJP

Posts: 2458; Member since: Nov 28, 2009's Schlem...

3. bambamboogy02

Posts: 840; Member since: Jun 23, 2012

Along with many others, phone availability is a reasonable complaint about the carrier.

4. JasonX

Posts: 54; Member since: Feb 11, 2015

I hate to say it, but I stay on Verizon because of the quality of the network. I used to have AT&T and it just wasn't as good. I also live more out in the country where T-Mobile and Sprint aren't as strong.

11. j10oreo

Posts: 7; Member since: Mar 11, 2015

it's unfortunate that your options become lacking due to lack of expansion in your area. However if you live in the suburbs, what's the incentive to stay on an overpriced plan when competitors are catching up in your are catching up? I use to have Verizon because Sprint was terrible, but since T-Mo has improved their network in my area, it has been much better than Verizon. That dropped calls sales pitch that I use to use while working at Verizon Wireless doesn't exist with T-Mo where I live.

5. blingblingthing

Posts: 974; Member since: Oct 23, 2012

Lol at doesn't care about the quality of the network

6. justForTheRecord

Posts: 51; Member since: Jan 17, 2015

P.S. Insulting people is probably not your best play in Marketing. Insults rarely get them coming back. And ignoring the glaring salary difference when referring to the little people who still have to work 2-3 jobs just to put food on the table ... yeah ... probably not a smart move either. I'm reminded of a top-ten global banking company who used to do banking in New York. But they really hated dealing with "the little people". And ... they're no longer in consumer banking in New York. Hmmm...

10. bambamboogy02

Posts: 840; Member since: Jun 23, 2012

When you represent product x know for XYZ, and see people leaving, you are going to say the same thing, they must not care for XYZ. It's rational. Most people jump carriers usually because of Price. That goes for a lot of things really, you have your energy company because of price, you buy your gasoline because of price, your bought your car because of price/value from what ever place. I get my money's worth from VZW, phone selection the biggest issue, but I am glad, it is my only issue.

13. JasonX

Posts: 54; Member since: Feb 11, 2015

Phone selection has never been an issue with me at VZW. My wife likes IPhones and I am a Motorola guy. You might say that I have more options at VZW because of the exclusive Droid line.

33. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Don't worry...this guy will get his in the end...

7. downphoenix

Posts: 3165; Member since: Jun 19, 2010

The Cut Your Bill event has not been ended yet. Sprint is still doing it. In fact they haven't even announced an end date for the promo yet.

17. symo33

Posts: 3; Member since: Apr 22, 2015

The cut your bill is a good idea...except you have to turn in your old for no value and then buy a new phone. Got to love the fine print on a commercial.

8. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

Is there any reason the only Verizon higher up we hear from now is this asshat? I remember years back we heard from the CEO, now we get a CFO who's pretty obnoxious to the point he sounds like the guy from the infomercials for the product that sounds like his last name. There definitely isn't a "we want to hear what you, the customer, wants." It's more like "Oh, don't like what we've got? Then GTFO."

9. Derekjeter

Posts: 1515; Member since: Oct 27, 2011

Can't blame the guy for being honest. They can't keep everyone and it's good that they loose some people that way they know they still have to work on building a better Verizon.

12. Scott93274

Posts: 6040; Member since: Aug 06, 2013

I have Verizon and I'm happy with the service, I'm not happy with the bill. I would love for someone to come along and knock them off their high horse. It's just fun to see a cocky company go down that had a we're too big to fail attitude.

23. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I've had VZW since 1996. I have moved one of my lines to the other 3 once and I paid dearly by having to cancel the service a month or two later and paid huge fees. Even though I know VZW costs more than T and Sprint, lower cost also means you get less of something. For example, even though T and Sprint charge less for service, they charge more for their phones. Example, the S6 is only 599 at VZW, while its almost $700 at T and Sprint. Also, on the monthly plan, T still wants you to pay 199 for the S6 and 299 for the S6 Edge and then pay the rest of the phone over 24 payments, but with VZW I put no money down at all and pay 24 payments. I have 5 phone son my plan and I pay under $300. I need to move the other 3 lines on my account over to Edge and my bill will be even cheaper. VZW just has high data costs. but I pay $80 for 10GB. But I can pay less every money is I use less, I simply have to login before the bill is due and change the data plan. VZW has the best service in the USA, period. I wouldn't care if T and Sprint said they'd pay my phone bill for a year to switch, I still wouldn't. Plus I have some perks I don't want to loose. Because of past issues I have had with VZW, I get one free upgrade to any line every year for life even if none of my lines qualify for an upgrade and I get 10% off my bill for life. No one else is going to give me that.

14. speedyfreedy

Posts: 11; Member since: Sep 30, 2014

Why is everyone blasting this guy. They asked why he thought they lost the amount of customers they did. He answered about as truthful as you can get and I'm certain he is probably right. He didn't slam anyone. Verizon isn't the cheapest carrier and they admit that. They admit they charge what they charge to keep the quality of their services where they are. Price sensitive people are not ones that will be on Verizon and I don't blame them, it's not cheap. Each individual has to do what fits their budget; I get that and it seems the CFO at Verizon gets that.

34. corporateJP

Posts: 2458; Member since: Nov 28, 2009

He's a d***. Go back and read some of his comments from the past few years, then come back and defend him. The guy loves money, takes it, then s***s all over the people that put it in his pocket when it's all said and done. The big problem these days is that his attitude has trickled down the chain and a very big reason why I personally chose to disassociate from these clowns a few years ago. These cats and their egos will destroy them in the long run. Their popularity has and continues to go the Comcast route. And as I've said previously, the competitors are starting to catch up. Verizon became number one by acquisitions, and once upon a time, had a very consumers friendly attitude. That's gone. Rome fell rather quickly, too, and nobody at that time dreamed that would ever happen...

15. jsjammu

Posts: 169; Member since: Nov 13, 2014

If the losses continue quarter after I think either he will change his tone and Verizon will change him.

18. dereck

Posts: 1; Member since: Apr 22, 2015

the only reason , Verizon is not cheap , is because all cell phones companys on there network like boost moblie and stranght talk and all , they got charge those high prices , to keep network for working for everyone. and the reason why sprint has bad network is cuz they don't put nothing in there network and have sprint people and have all sub networks on there network and it runs them down. and tmoblie was the same way but tmoblie is smarting up and putting money in there network and making there network a better network. and Verizon puts money in there network but they are also loseing track of network and company. I think each cell phone company should have there own network, no matter if your a little cell phone company or big one , you should have your own no pig backing on networks.

20. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I agree with Verizon. I have been with Sprint, ATT and T-Mobile and they all have crappy service for the places I need to travel. I live in Chicago, but I travel to my parents place in Michigan. Both Sprint and T-Mobile have the worse service where they live. Also in Sarasota my second home, Sprint is just useless. T-Mobile's service in Chicago was to slow back when I first tried it, but I heard its faster now. So I played with a Note 4 on their LTE and it didn't seem any faster. Sprint in Chicago is terrible if you live in a heavy brick building. Even where my parents live, Verizon's service is bad too, but it works. With T and Sprint I would miss calls and have no data access. With VZW my data falls to EVDO at 1X, but still works. I just don't like ATT period for personal issues I had as an employee and as a customers. I would pay VZW double before I'd give ATT even a 3rd of my money. I chose not to even take a company phone where I wouldn't even have a bill, because they use ATT.

29. JasonX

Posts: 54; Member since: Feb 11, 2015

Same thing with me. VZW is the only carrier that has service where my in-laws live (rural Georgia). Even AT&T had no service out there when we had it.

21. zachattack

Posts: 621; Member since: Jul 31, 2013

Haha I don't care how good they think their service is, mobile was the same. I pay a lot less too so they're losing another customer because their prices are horse crap. Paying 98$ every time I bust the 2gb cap. T-Mobile unlimited data 90$ after tax, f**k you Verizon can't wait to leave

24. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

VZW charges $15 for every GB you go over. If you just pay for a bigger plan, you wouldn't have to worry about going over. Sounds like its your own fault. Those unlimited plans T offers? If you go over a certain amount, they bump your speed down so low it is slower than a 28K connection. But buy...take care. For every one that leaves, 3 will join. Out of all the major US carriers, VZW offers the best phone plans as far as cost of a phone and with Edge its even cheaper. They have the best coverage period. ATT offers better speed and T does too in some places. But speed means nothing if I cant get the service anyways. I agree with VZW on principle. I've tried leaving them for the other 3 and their service is more like, you get what you pay for, but most times you don't.

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