JeepMatt
Delaware Fios
Premium
join:2001-12-28
Wilmington, DE | I helped!
And I was one of those 141,000 additions! 
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"ONE team - ONE city - ONE dream!!" |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | Question would be
Are they replacing all the lost revenue from the fleeing POTS customers bailing to cellular, cable telephony and indy VoIP? |
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NYC Girl
Premium
join:2007-02-04
Bronx, NY
 ·Optimum Online
 ·Optimum Voice
| HA, HA!!! They started airing those "always on" commercials when I switched to cable VoIP back in January, that was the last straw for them, me leaving, LOLOLOLOL. 
My Digital Phone is always on as well and I have no intention of going back to Verizon. If anything, I will use another VoIp provider if necessary.  |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
| I switched to Viatalk during that 2 years for 1 promotion and have been pretty happy. I have cell as a backup and my home alarm system already had a cellular backup module (because the NID is accessable from the front yard side of my fence) so even if Viatalk not totally reliable it won't bother me much. Time Warner offers digital phone service but it's pretty expensive. It isn't much cheaper than POTS. |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | reply to JeepMatt
Re: I helped!
I was thinking from switching to FiOS TV from E* but read that some people like you were having occasional trouble with their HD feeds. Did your pixelation issues go away? |
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
 ·Sprint Mobile Broa..
·Comcast
|  Capital expenditures as % of revenues is the key
The key difference going forward is how much each company is reinvesting a part of their revenues in their business.
AT&T had capital expenditures in their last reported quarter of $3.3 billion from $29 billion in revenue. That is 11.4% of revenue reinvested.
Verizon had capital expenditures in their last reported quarter of $4.2 billion from $22.6 billion in revenue. That is 18.6 % of revenue reinvested.
Now the question is - how long will the Verizon shareholders be willing to delay a better return on their investment? Theoretically, they will get a better return down the line due to future higher profits on the capital expenditures. So it comes down to - do they believe Verizon management's promises or not.
Verizon EPS - 51 to 56 cents/share depending on special items
AT&T EPS - 45 to 46 cents/share depending on special items
Given the above earnings/share info, Verizon's plan still appears to be working and will give them an advantage over AT&T in the long run with a reduced chance of major complaints from shareholders. A little grumbling maybe, but no shareholder revolt is in sight yet.
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Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| The problem is that we are comparing two companies that don't compete with each other. Verizon is expanding FIOS rollouts, but their new customers are coming from Cable, not from AT&T. So AT&T really has nothing to fear from Verizon offering a better/faster/cheaper product, and their earnings are in no way effected by it.
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Intel Quad Core QX6700 @3500Mhz/Asus P5N32-E SLI/4x 1024Mb Corsair/WD 74Gb Raptor/PNY 7800GTs SLI/Antec 550 True Control/Custom water cooler |
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NYC Girl
Premium
join:2007-02-04
Bronx, NY | reply to ColorBASIC
Re: Question would be
Yeah, the taxes are less than POTS, though, and actually is a little cheaper with my triple play bundle. It comes to $33.91 instead of 39.99. I was paying $65.79 w/Verizon.
DP works w/my alarm system. |
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast
| reply to Camelot One
Re: Capital expenditures as % of revenues is the key
said by Camelot One  :The problem is that we are comparing two companies that don't compete with each other. But they do compete with each other(and many others) in the stock market when looking for sources of investment money. Mutual funds, institutional investor companies, & brokerages look to invest their money in various sectors and when balancing their portfolios and looking to invest a piece in the communications sector, AT&T and Verizon are very definitely competitors.
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Internet News
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infolynx
Infolynx
Premium
join:2002-02-26
Englewood, NJ | I was one of the 2nd quarters new adds
This is a great service so far |
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Camelot One
Premium,MVM
join:2001-11-21
Sarasota, FL
clubs:
| reply to TKJunkMail
Re: Capital expenditures as % of revenues is the key
Right, but that was my point. Verizon is spending money, and thus turning a lower return, so that they can beef up their network. AT&T is sitting back doing nothing (or little to nothing) and thus showing better returns. If the two companies competed for sales, to where the money VZ was spending would eat into the customer base of AT&T, it might balance out.
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Intel Quad Core QX6700 @3500Mhz/Asus P5N32-E SLI/4x 1024Mb Corsair/WD 74Gb Raptor/PNY 7800GTs SLI/Antec 550 True Control/Custom water cooler |
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TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast
| said by Camelot One :Verizon is spending money, and thus turning a lower return, so that they can beef up their network. AT&T is sitting back doing nothing (or little to nothing) and thus showing better returns. The main thing that matters to investors is EPS. And Verizon is still beating AT&T there.
Verizon EPS - 51 to 56 cents/share depending on special items
AT&T EPS - 45 to 46 cents/share depending on special items
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morbo
Complete Your Transaction
join:2002-01-22
00000
clubs:
·Charter Pipeline
 ·AT&T Southwest
| reply to Camelot One
said by Camelot One :So AT&T really has nothing to fear from Verizon offering a better/faster/cheaper product, and their earnings are in no way effected by it. i think the AT&T and Verizon comparison is a great comparison of different strategies for running a company: short term profits vs. long term viability.
cable will eat AT&T's lunch in a few years. waiting... |
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JSRoman
Premium
join:2005-03-10
Callahan, FL
| reply to ColorBASIC
Re: Question would be
said by ColorBASIC :Are they replacing all the lost revenue from the fleeing POTS customers bailing to cellular, cable telephony and indy VoIP? "In the first quarter, Verizon lost 925,000 lines from year-end levels -- meaning it has lost 7.9% of the lines it had at March 31, 2006. The cancellation rate is up from 7.6% in the fourth quarter and 6.9% a year ago. "
»www.thestreet.com/_yahoo/newsana···m_ite=NA
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www.seabee.org |
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NPGMBR
join:2001-03-28
Arlington, VA | reply to infolynx
Re: I was one of the 2nd quarters new adds
Well I'm gonna have FIOS when I move to my new apartment June 1. I can't wait! |
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ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA | reply to JSRoman
Re: Question would be
Looks then like the answer would be no. |
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richardpor
Fur it up
join:2003-04-19
Portland, OR
| reply to TKJunkMail
Re: Capital expenditures as % of revenues is the key
As much as Verizon EPS is sweeter, my own sentiment is to sell Verizon and buy AT&T
To me when expenditures jump higher and profit fall, red lights start going off in my head. I have to confess I more cynical since the dot com bust when to much emphasis was placed on growth and none on expenditures and profitability. I been told too many times by companies to ignore their expresses (oh excuse me capital investment) and look into the future for some pie in the sky profitability just to see the company go bust.
If I were the CEO I would never had put money into Fiber until I am sure I can reach maximum penetration of the market. For me is no fiber in the ground until we can reach both single occupancy home AND multi-dweller units. I also would drop the idea of become a media company. Instead, I would sell connections to other companies to provide video and cable services to my customers, leaving it to them to handle franchising and dealing with media providers like Viacom. I would put my effort in improving the network. |
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Ahrenl
join:2004-10-26
North Andover, MA
 ·Verizon FIOS
2 edits | reply to TKJunkMail
Another thing to consider is what will be the need of either company to raise money in the equity markets in the near to mid future. I'd say, not very great, since further acquisitions will be legislative & political minefields.
This means they only need to be able to re-finance their unsecured debt, where EPS is secondary to interest coverage and cash flow. As long as they can maintain their credit ratings/metrics then neither company will have short term worries.
Long term, AT&T will be in trouble, unless they see a game changing technology coming down the pipes (some type of wireless) that they're going to leap frog the entire wired network paradigm with. Somehow I think whitacre hasn't been interested in looking that far, seeing as how he's not going to be there. |
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cwh
join:2006-05-14
San Antonio, TX
| That all depends. Verizon made the correct technological decision without a doubt, however ATT may have very well have made the correct economical decision. IF ATT gets similar take rates for u-verse as verizon get for fios, the winner is going to be ATT by a large margin as they spent far less. |
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batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL
| reply to richardpor
said by richardpor :As much as Verizon EPS is sweeter, my own sentiment is to sell Verizon and buy AT&T ......................................................................I would sell connections to other companies to provide video and cable services to my customers, leaving it to them to handle franchising and dealing with media providers like Viacom. I would put my effort in improving the network. Buy low sell high is correct.
Letting the leaches in when Verizon spent so much money killing them is incorrect. |
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