Essay About Verizon Net Drops And Wireless Area Sees Revenue Rise

Verizon Net Drops, but Wireless Area Sees Revenue RiseEssay Preview: Verizon Net Drops, but Wireless Area Sees Revenue RiseReport this essayThe article that I read was found in the October 29 issue of the Wall Street Journal. This article is called, “Verizon Net Drops, But Wireless Area Sees Revenue Rise.” Verizon Communications Inc. reported that third-quarter net income fell fifty-nine percent from the year-earlier period, when results were helped by asset sales and tax benefits (p.B7). However, there was an eighteen percent jump in revenue at the wireless affiliate.

Verizons total number of residential phone lines fell 3.5%, business lines declined 4.6%, and revenue in the U.S. wireline division was down 4.1%, which was the steepest decline of this year (p.B7). Like other regional telecommunications companies, Verizon continues to suffer from declines in usage of traditional phone services as people rely more on cell phones and the Internet (p.B7). Verizon Wireless had a net gain of 1.3 million retail subscribers and customer growth accelerated from the first and second quarters. Also, Verizon is taking customers from rival carriers like Sprint PCS and Cingular. Therefore, Verizon needs to focus most of its attention to the wireless affiliate because thats what is giving Verizon a competitive advantage.

Verizon continues to make new customers spend more money on wireless service, which in turn allows for a reduction in the number of new phone lines. This is a big loss for Verizon as our revenue per phone line grew from $42.70 to $50.50 per line.

The net decrease is mainly due to the fact that many Verizon customers still use other cell phones and are buying devices with wireless carrier aggregation. This also reduces their usage (particularly at AT&T) on the most expensive line.

Verizon also appears to have made some of the biggest gains in the U.S. telephone market since the beginning of this year.

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Verizon Wireless continues in a relatively weak position with the number of customers, particularly in the second and fourth quarters. In both categories, Verizon saw the greatest net growth in wireless customer growth.

The U.S. wireless carrier and cable and cable plus wireless affiliate customers have very different experiences that require their service to continue to provide unique and differentiated offerings. The U.S. wireline and wireless affiliates differ greatly in how they engage consumers and how they provide information and services.

Based on data from the U.S. Conference of Mayors, Verizon Wireless is projected to achieve a net loss of $1.6 billion in 2015, which is more than triple its previous estimate of $1.4 billion. The U.S. cable subscribers continue to see higher growth through 2014 due to lower costs associated with the new wireless business. The two affiliates also saw a smaller positive growth rate in 2016 due to Verizon and Cingular providing an increased number of phones. Further, the cable customers continue to experience high customer satisfaction scores on the new wireless business.