Verizon profit dips, but wireless stays strong
Verizon Communications posted on Monday a third-quarter dip in profits, though the company's wireless business showed strong results.
The carrier's overall profits were hurt by the continued decline of its wireline business. But the company is making up for much of the loss with wireless.
That said, Verizon did not add as many customers in the third quarter as AT&T, which had a stellar quarter due to strong sales of the Apple iPhone. Verizon is hoping to pick up ground through its broad partnership with Google announced earlier this month. In addition, Verizon is adding Research In Motion's new Storm 2 to its lineup.
Verizon reported third-quarter net income of $2.88 billion, or 41 cents a share, on revenue of $27.3 billion. Excluding charges, per share earnings fell to 60 cents from 66 cents last year, but the company beat analyst estimates of 59 cents per share.
Verizon's total operating revenue grew 10 percent to $27.3 billion, compared with the third quarter of 2008. This includes revenue from Verizon Wireless and Alltel. If Alltel, the regional wireless operator Verizon acquired in January, had been part of Verizon a year earlier, the revenue increase would have been 0.6 percent.
Verizon Wireless, which is jointly owned by Vodafone Group, continued to show strong growth, despite competition. The company added 1.2 million new customers in the quarter, bringing its total customer base to 89 million. It reported a churn rate for its contract customers of 1.13 percent.
Verizon Wireless also increased its revenue by 24 percent in the third quarter to $15.8 billion. Much of this growth is due to an increase in data services. As the company offers more sophisticated phones, it is requiring more of its customers to sign up for some type of data plan.
Overall wireline revenue fell 4.8 percent to $11.6 billion. Much of the decline comes from customers ditching wireline phone service. That said, Verizon is looking toward its Fios fiber-to-the-home network to provide growth.
The company added 198,000 Fios Internet customers and 191,000 Fios TV customers in the quarter, boasting a 12.6 percent increase in average revenue per user.
Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie. 
Walmart? In case you are not from US... Walmart is a retailer as compared to Verizon which is a telecommunication company - two completely different line of business.
I might be wrong but Walmart doesn't even sell Verizon phones & contracts. They sell AT&T or pre-paid phones.
The biggest competition for Verizon is not Walmart and not even AT&T. It's the iPhone. Yes, I know iPhone is not a telecommunication service either. However, it's only because of the iPhone that AT&T is gaining on Verizon. If you take out the iPhone, why would anyone go to AT&T with the worst network and horrible customer service.
Wherever iPhone goes next (once their contract with AT&T expires) will determine how many new customers Verizon can grab. If only Verizon was smart enough from the beginning and had a GSM network (like the rest of the world), they wouldn't have to compete with AT&T. People would switch to Verizon since the networks would be the same iPhone would work on Verizon as well - unlike now.
...some rumors are saying they will cost 500$ or more without a contract
Go Sebastian Vettel !!
It`s war !!!
I understand the data plan for smatphones, provided you one a one or two year contract.
But Verizon should not be stupid and turn away those people who can't afford a data plan but want to buy a new cell phone or smartphone.
I know people that would be willing to pay full price for a newer Smartphone but don't want the extra cost of a data plan.
I know a lot of people that just purchase a regular phone to make calls, they don't want internet service.
These people will go with the cheapest phone and plan.
VW has a great opportunity to sell Smartphones, Touchphones, and make money on them instead of the phones sitting around because not too many people buy them due to the link to data plans.
The reason why for so many years ( I am a customer since 2001) VW has NEVER had a GOOD choice and PRACTICAL as well as INTERESTING phones is because VW has never sold enough of them.
They should rething their Data plan cost and the sells of smartphones to at least be able to cancel data plans once your contract expires.
maybe you can find an app that will show you that that verizon's wireless piece (which is where you got that question from) did not experience any loss at all, in fact, they had great gains.
nice try, though. next time, try not to sound like such a dummy. thanks.
- by master_mind413 October 26, 2009 10:33 PM PDT
- I refuse to get a verizon phone after my last experience with them when i had to cancel a 2 year contract early and they raked me for a 275.00 dollar cancellation fee they can go to hell and it wouldn't be a loss to me they charge to much and then turn around and charge for every thing on top of it i hope they take it in the azz
- Like this Reply to this comment
-
(11 Comments)