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Verizon Adds Record 2.1 Million Wireless Subs
FiOS TV Growth Slows, But So Do DSL Losses
by Karl Bode 09:08AM Tuesday Jan 22 2013
Verizon's fourth quarter 2012 earnings released this morning show that the telco added a record high f 2.1 million new postpaid wireless subscribers during the quarter for a total of 98.2 million wireless subscribers. Driven by those wireless gains Verizon reached the $30 billion operating revenue mark for the first time in the telco's operating history. 58 percent of Verizon's contract subscribers now have smartphones, up from 53 percent just the quarter before. Wireless continues to be the motor powering the company.

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Still, Verizon's record quarter profits were eaten into by iPhone subsidies, pension costs and a $1 billion hit related to hurricane Sandy. The result was a negative earnings per share of -$1.48, twice the negative EPS of $0.71 seen during the same quarter last year.

FiOS TV additions were slower last quarter -- the company adding 34,000 FiOS TV customers compared to the 194,000 gained in the quarter one year ago. Verizon had a total of 5.4 million FiOS Internet and 4.7 million FiOS Video connections at the end of the quarter.

As we've been noting, Verizon used Sandy to migrate a lot of DSL users to fiber; the telco says they migrated 223,000 homes to fiber, contributing to an 11 percent improvement in trouble reports across Verizon’s entire copper network for the year. While FiOS expansion is essentially frozen, the company estimates they'll upgrade another 300,000 historically troubled DSL lines to fiber in 2013.

Verizon continues to bleed DSL and POTs customers to the tune of hundreds of thousands of subscribers each quarter, as the company lets these users flee to cable so they don't have to upgrade them. Thanks to the Sandy conversions Verizon's DSL exodus slowed slightly, the telco losing 117,000 DSL users on the quarter compared to 144,000 last quarter. POTS losses slowed but continued to be severe, with the telco losing 402,000 copper voice lines on the quarter.

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antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
United State
kudos:4

Deploy more FIOS and you get some growths!

:P
FloridaBoy

join:2009-06-22
Bradenton, FL

1 recommendation

Re: Deploy more FIOS and you get some growths!

Unfortunately, I dont think Lowell will listen. Remember, shareholder value is the most important thing.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
United State
kudos:4
Reviews:
·Time Warner Cable

Re: Deploy more FIOS and you get some growths!

said by FloridaBoy:

Unfortunately, I dont think Lowell will listen. Remember, shareholder value is the most important thing.

:(
silbaco
Premium
join:2009-08-03
USA
He'll listen eventually. FiOS makes too much money for shareholders to ignore in the future.
rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House
said by FloridaBoy:

Unfortunately, I dont think Lowell will listen. Remember, shareholder value is the most important thing.

Sadly true.

A highly profitable company with disgruntled customers (such as AT&T) is a bigger hit with investors than a moderately profitable company with very high user satisfaction. So there is far more incentive (at the C-level where careers are made and fat bonuses are paid) to rake in cash, than to institue policies to keep paying customers happy-- no matter how shortsighted it is.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Wait until the LTE build is complete.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1

I added four lines in 2012

I added mom and grandma (both with basic phones), an iPad, and an iPad Mini to my ShareEverything plan. I also upgraded to iPhone 5.

JimThePCGuy
Formerly known as schja01.
Premium,MVM
join:2000-04-27
Morton Grove, IL

Bad link

The "earnings" link in the first sentence goes to an article referenced in a different announcement.

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Bad link

said by JimThePCGuy:

The "earnings" link in the first sentence goes to an article referenced in a different announcement.

Use this link:
»newscenter.verizon.com/corporate···arnings/
--
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury.

ocjosh

@clearwire-wmx.net

It's about price and speed

Compared to other countries in Asia such as Japan, Hong Kong, Korea and more, FIOS is very expensive to afford.
The promotion is $89 right now with triple play + 15% more on tax or $5 just FIOS alone still with tax.

While my friends in Hong Kong has fiber service 100Mbps/100Mbps for HKD 138 or less, 17.8 USD, our FIOS is so much higher to afford.

If you have traveled to Japan or other countries, you know that it's faster, a lot cheaper there. Not to mention the cap is not the case, we are out of luck due to consolidation and less competitions.

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:2

Re: It's about price and speed

Yeah, and everyone is on top of each other in Tokyo & Hong Kong. Big differences in infrastructure & deployment costs.

There are other huge differences in cost of living in the above referenced as compared to many in the US who (like me) have access to Fios Internet.

I work a very modest civil service job (by modest I mean REALLLY shitty pay) yet I manage to own a home with a full acre lot. I doubt there are a lot of people outside of farmers & millionaires in Japan who can say they own that much property.

When will people in the US realize we don't have to be the absolute best at EVERTHING. Folks live under different circumstances the world over.

Rural folks here in America enjoy the benefits of a rural way of life (I grew up in a semi rural area & loved it), but we couldn't get cable until 1992.

On the flip side, I have tons of open ground to ride my dirt bikes, and ride horses, and learn to shoot, etc.

Every lifestyle is a compromise....
--
Petty people are disproportionally corrupted by petty power
AndrewW

join:2009-03-07
Toronto, ON
kudos:1

Typo

I believe there is a typo in the above post. Verizon added 134,000 FIOS video customers in the 4th quarter and not the 34,000 as reported above. In fact they bested the previous two quarters in terms of FIOS customer additions.

bohratom
Jersey Shore is back again.

join:2011-07-07
Red Bank NJ

Re: Typo

Yeah, I noticed that to..

juilinsandar
Texas Gooner
Premium
join:2000-07-17
San Benito, TX

as expensive as they are...

I'm surprised that they added so many cellphone customers with the economy as bad as it is for so many people.
--
An appeaser is one who feeds a crocodile, hoping it will eat him last. - Sir Winston Churchill

anon anon

@charter.com

Re: as expensive as they are...

said by juilinsandar:

I'm surprised that they added so many cellphone customers with the economy as bad as it is for so many people.

They were likely former at&t, Sprint or t-mobile customers.
Justin024

join:2010-08-11
Irving, TX

Re: as expensive as they are...

This right here. I switched from Sprint to Verizon last month.

ArrayList
netbus developer
Premium
join:2005-03-19
Brighton, MA
It's not like there are many other carriers that they could be former customers of.

anon anon

@charter.com

Re: as expensive as they are...

said by ArrayList:

It's not like there are many other carriers that they could be former customers of.

vs never have been cell phone custoemrs previously is what I was getting at.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

fine print?!?

I think most people are FORGETTING that subscriber growth and revenue from wireless is made of various markets...
post paid & prepaid under various brand labels... and well over 90% of that goes to Verizon and AT&T through various MVNO brands.. so subscribers are still getting fleeced, just through a mvno. MVNOs have only been mock competition at best since their inception. For REAL competition, you need a full company with spectrum, tower assets in strategic markets (OWNED by the company) and a customer base which they are willing to compete on price.

FIOS was originally a good product but the company left it to get stale due to neglect, and mismanagement at the highest levels (right up to the CEOs). That accounts for lackluster "ROI" not the consumer & marketplace. As others seem to claim FIOS is doing so well, yet with the other hand, the company always find ways to justify not funding it's growth & development. Can't have it both ways.. either it grows through investment and development or it shrinks by neglect & mismangement. Pick ONE
Expand your moderator at work

sholling
Premium
join:2002-02-13
Hemet, CA
kudos:1

Cover More Territory And You'll Gain Customers

They have a monopoly or duopoly everywhere they sell FiOS. So let's see, they stop deploying FiOS into new areas and jack the prices way up in the few areas they do serve and someone is surprised that sales grow has slowed? Hint - deploy to more areas to gain more potential customers and cut prices to attract more customers in areas that you already serve - business 101. At this point management sees the existing business as an annuity in payout mode rather than a place to invest.
--
"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else."
--FREDERIC BASTIAT--
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: Cover More Territory And You'll Gain Customers

said by sholling:

They have a monopoly or duopoly everywhere they sell FiOS. So let's see, they stop deploying FiOS into new areas and jack the prices way up in the few areas they do serve and someone is surprised that sales grow has slowed? Hint - deploy to more areas to gain more potential customers and cut prices to attract more customers in areas that you already serve - business 101. At this point management sees the existing business as an annuity in payout mode rather than a place to invest.

Maybe when they start hemorraging customers they'll "GET IT"... as the latest verizon commercial goes...