Nextel18, please explain how this is possible when they don't have a great prepay model.
Verizon Wireless Leads Industry
Verizon Wireless again delivered strong revenue growth, profitability, net customer additions and low churn that were significantly ahead of the industry.
Verizon Wireless is now the largest U.S. wireless carrier in terms of revenue. The company is also the largest wireless data provider based on data revenue, and it has the most retail customers -- that is, businesses and consumers directly served by Verizon Wireless and who buy Verizon Wireless-branded service, rather than customers of the company’s resellers.
Verizon Wireless revenues grew 18.2 percent year-over-year to $9.9 billion in the third quarter 2006, driven by strong customer growth and demand for data services. This was the fourth consecutive quarter of 18 percent or better revenue growth. Service ARPU (average revenue per user) increased year-over-year for the second consecutive quarter, and wireless data revenues grew to 14.1 percent of total wireless service revenues.
Verizon Wireless operating income margin was 26.2 percent in the quarter, its highest level ever, reflecting the company’s ability to improve its industry-leading cost efficiency even as it added the most retail customers.
Wireless EBITDA margin was 45.0 percent. (EBITDA -- or earnings before interest, taxes, depreciation and amortization -- is a non-GAAP measure that adds depreciation and amortization to operating income; EBITDA margin is calculated by dividing EBITDA by wireless service revenues.)
Verizon Wireless added 1.9 million net customers in the third quarter 2006, for a total of 56.7 million customers nationwide, a 15.1 percent increase in total customers from the end of the third quarter last year. During the past 12 months, the company has added nearly 7.5 million net customers, more than any other wireless carrier. All of the net additions in the third quarter and almost all net additions in the past 12 months were retail customers.
Key to the company’s strong net add performance was its continued industry-leading low churn level. For the third quarter 2006, total churn was 1.24 percent, and churn among the company’s retail postpaid customers -- 93 percent of all its customers -- was 0.95 percent.
Verizon Telecom Broadband Gains
Verizon Telecom, which serves wireline residential and small-business customers, added 448,000 net broadband connections in the third quarter 2006. These results include new customers of both DSL and FiOS fiber-optic-based Internet access services. Over the past year, Verizon Telecom has added more than 2 million net new DSL and FiOS Internet customers. Verizon Telecom now has 6.6 million total broadband connections, an increase of 45.1 percent compared with the third quarter 2005.
FiOS Internet customers accounted for 147,000 of the net broadband connection additions in the third quarter and now total 522,000. In addition, Verizon Telecom had 118,000 FiOS TV customers at the end of the third quarter.
In the consumer market, Verizon added 120,000 more net broadband and video customers during the third quarter than it lost in primary wireline voice access lines. New broadband and video sales have more than made up for a reduction in primary wireline voice access lines of customers who turned to wireless, cable or Internet protocol (IP) services. Primary residential access lines decreased by 419,000 in the third quarter 2006, compared with the second quarter 2006, while Verizon added 539,000 residential broadband and video customers, including customers with DIRECTV bundles, over the same period.
At the end of the third quarter 2006, there were 46.0 million total domestic wireline access lines -- which also include secondary residential lines, public telephones, business lines and wholesale voice connections. This represents a 7.5 percent decrease compared with the end of the third quarter 2005.
Total wireline operating revenues, including Verizon Business, were $12.8 billion in the third quarter 2006, an increase of 35.5 percent compared with the third quarter 2005. On an adjusted basis (non-GAAP), total wireline operating expenses were $11.7 billion in the third quarter 2006, a 43.3 percent increase compared with the third quarter 2005.
On a pro-forma basis, wireline operating revenues decreased 4.7 percent, comparing third quarter 2006 with third quarter 2005, driven in part by a continuation of the expected declines in former MCI operations serving mass market (residential and small business) customers. Wireline revenues were up sequentially for the second quarter in a row, with third quarter 2006 revenues up 0.1 percent over second quarter 2006.
Also on a pro-forma basis, wireline cash expenses (total operating expenses less depreciation and amortization expense) were $9.3 billion in the third quarter 2006, a decrease of 1.3 percent compared with the third quarter 2005. 🤣
Verizon Wireless again delivered strong revenue growth, profitability, net customer additions and low churn that were significantly ahead of the industry.
Verizon Wireless is now the largest U.S. wireless carrier in terms of revenue. The company is also the largest wireless data provider based on data revenue, and it has the most retail customers -- that is, businesses and consumers directly served by Verizon Wireless and who buy Verizon Wireless-branded service, rather than customers of the company’s resellers.
Verizon Wireless revenues grew 18.2 percent year-over-year to $9.9 billion in the third quarter 2006, driven by strong customer growth and demand for data services. This was the fourth consecutive quarter of 18 percent or better revenue growth. Service ARPU (average revenue per user) increased year-over-year for the second consecutive quarter, and wireless data revenues grew to 14.1 percent of total wireless service revenues.
Verizon Wireless operating income margin was 26.2 percent in the quarter, its highest level ever, reflecting the company’s ability to improve its industry-leading cost efficiency even as it added the most retail customers.
Wireless EBITDA margin was 45.0 percent. (EBITDA -- or earnings before interest, taxes, depreciation and amortization -- is a non-GAAP measure that adds depreciation and amortization to operating income; EBITDA margin is calculated by dividing EBITDA by wireless service revenues.)
Verizon Wireless added 1.9 million net customers in the third quarter 2006, for a total of 56.7 million customers nationwide, a 15.1 percent increase in total customers from the end of the third quarter last year. During the past 12 months, the company has added nearly 7.5 million net customers, more than any other wireless carrier. All of the net additions in the third quarter and almost all net additions in the past 12 months were retail customers.
Key to the company’s strong net add performance was its continued industry-leading low churn level. For the third quarter 2006, total churn was 1.24 percent, and churn among the company’s retail postpaid customers -- 93 percent of all its customers -- was 0.95 percent.
Verizon Telecom Broadband Gains
Verizon Telecom, which serves wireline residential and small-business customers, added 448,000 net broadband connections in the third quarter 2006. These results include new customers of both DSL and FiOS fiber-optic-based Internet access services. Over the past year, Verizon Telecom has added more than 2 million net new DSL and FiOS Internet customers. Verizon Telecom now has 6.6 million total broadband connections, an increase of 45.1 percent compared with the third quarter 2005.
FiOS Internet customers accounted for 147,000 of the net broadband connection additions in the third quarter and now total 522,000. In addition, Verizon Telecom had 118,000 FiOS TV customers at the end of the third quarter.
In the consumer market, Verizon added 120,000 more net broadband and video customers during the third quarter than it lost in primary wireline voice access lines. New broadband and video sales have more than made up for a reduction in primary wireline voice access lines of customers who turned to wireless, cable or Internet protocol (IP) services. Primary residential access lines decreased by 419,000 in the third quarter 2006, compared with the second quarter 2006, while Verizon added 539,000 residential broadband and video customers, including customers with DIRECTV bundles, over the same period.
At the end of the third quarter 2006, there were 46.0 million total domestic wireline access lines -- which also include secondary residential lines, public telephones, business lines and wholesale voice connections. This represents a 7.5 percent decrease compared with the end of the third quarter 2005.
Total wireline operating revenues, including Verizon Business, were $12.8 billion in the third quarter 2006, an increase of 35.5 percent compared with the third quarter 2005. On an adjusted basis (non-GAAP), total wireline operating expenses were $11.7 billion in the third quarter 2006, a 43.3 percent increase compared with the third quarter 2005.
On a pro-forma basis, wireline operating revenues decreased 4.7 percent, comparing third quarter 2006 with third quarter 2005, driven in part by a continuation of the expected declines in former MCI operations serving mass market (residential and small business) customers. Wireline revenues were up sequentially for the second quarter in a row, with third quarter 2006 revenues up 0.1 percent over second quarter 2006.
Also on a pro-forma basis, wireline cash expenses (total operating expenses less depreciation and amortization expense) were $9.3 billion in the third quarter 2006, a decrease of 1.3 percent compared with the third quarter 2005. 🤣
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Word-of-mouth marketing has paid off for VZW ten-fold.
In other words, whenever you hear people talking aruond the water cooler in an office, or a bunch of people talking in church, or in line at the DMV and the topic of crappy wireless service comes up. 99.9% of the people say, "you know, you should get Verizon, I had similar issues with that 'X' carrier and switching to VZW solved all my problems"...
Whether it solved all their problems is irrelevant, the fact is look at the numbers... Everyone upset w/ carrier 'X' or 'Y' moved to VZW....
In other words, whenever you hear people talking aruond the water cooler in an office, or a bunch of people talking in church, or in line at the DMV and the topic of crappy wireless service comes up. 99.9% of the people say, "you know, you should get Verizon, I had similar issues with that 'X' carrier and switching to VZW solved all my problems"...
Whether it solved all their problems is irrelevant, the fact is look at the numbers... Everyone upset w/ carrier 'X' or 'Y' moved to VZW....
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Verizon doesn't need a prepay service. They don't target those customers like T-mobile and Cingular do. Verizon's clientel is a higher class then EVERY wireless carrier out there.
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Rofl. That's the most ignorant thing I've read in a long time. "Higher class". 🤣
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it was annoying seeing verizon wireless beginning every sentence, it wouldnt surprise me if he had a vzw shrine in his house or sumthing and bow in front of a big red check mark
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God how many threads are there going to be in phonescoop trying to goad Nextel18 into arguing?
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