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Verizon Posts $2 Billion Loss
Largely Related to Pensions, iPhone Subsidy Costs
by Karl Bode Tuesday 24-Jan-2012 tags: business · wireless · bandwidth · consumers · wireless
Verizon has released their fourth quarter 2011 earnings, and while the company posted a whopping $28.4 billion in sales, they posted a $2 billion loss. Why? According to Verizon, the company posted a $3.4 billion pre tax pension charge, but they also took a hit due to their up front subsidizing of the Apple iPhone. On the wireless side growth continued strong, with Verizon posting 1.5 million retail net additions for a total of 108.7 million total wireless connections, 92.2 of which are retail. On the wireline front Verizon added 201,000 new FiOS Internet and 194,000 FiOS Video customers, but only saw a net gain of 98,000 broadband users due to continuing to bleed DSL users in un-upgraded markets. At the end of 2011 Verizon served 4.8 million FiOS Internet and 4.2 million FiOS Video connections.

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BIG b
Premium
join:2002-11-23
Connersville, IN

Slow data

So this is why my iPhone is so slow.. They have no plans or money to fix their 3G network... This is like AT&T when they introduced the iPhone.

Great.... Thanks Verizon...
--
To be continued .....

CurGeorge8

join:2005-05-02
South Park, PA

Re: Slow data

said by BIG b:

So this is why my iPhone is so slow.. They have no plans or money to fix their 3G network... This is like AT&T when they introduced the iPhone.

It's slow because it's on 3G, which VZW's 3G is one of the slowest in the country (but also largest in terms of coverage).

The day the iPhone was released, I upgraded from my old BB curve to a Moto 4G Bionic. The 4G speeds are worth more to me than a cup of the Apple kool-aid.

And, fwiw, Verizon has stated publicly that they are not planning on upgrading their 3G network.

RTFA, the losses stem from legacy landline costs and subsidies to Apple.

thegeek
Premium
join:2008-02-21
right here
kudos:2

Re: Slow data

but, but their apple product makes it faster because of the shiny logo!!!!!!111
BiggA

join:2005-11-23
EARTH
If you want an iPhone, get AT&T. If you want Verizon, get a DROID with 4G LTE.

jgkolt
Premium
join:2004-02-21
Lakewood, OH
apple did not include a 4g radio in the iphone but they did put in at&t 4g like radio. that is why the verizon one is slower than at&t iphone, nothing to do with verizon.
BiggA

join:2005-11-23
EARTH

Re: Slow data

Because AT&T is using the standard UMTS network, Verizon never upgraded to UMTS, they skipped a generation and went right to LTE. The AT&T iPhone is not real 4G, it's HSPA+. It's still pretty awesome though...

93388818
It's cool, I'm takin it back
Premium
join:2000-03-14
Dallas, TX

Re: Slow data

the fact that Verizon's 3G network doesn't support simultaneous voice and data is precisely why they are abandoning it and going LTE exclusively. This is a big reason they are ahead of AT&T in their deployment of LTE - they simply had to.
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast

Re: Slow data

That has nothing to do with anything. The Verizon network supports simultaneous voice and data through SVDO, but the iPhone's chipset does not.

It has everything to do with spectral efficiency and greenfield spectrum that is needed to increase the overall capacity of the network.

sleuth
Premium
join:2001-08-30
West Des Moines, IA
said by 93388818:

the fact that Verizon's 3G network doesn't support simultaneous voice and data is precisely why they are abandoning it and going LTE exclusively. This is a big reason they are ahead of AT&T in their deployment of LTE - they simply had to.

NVM

45612019

join:2004-02-05
New York, NY
Your iPhone is so slow because it's a damn iPhone.

If you want a competent tech product avoid the Cult of Apple like the plague.
BiggA

join:2005-11-23
EARTH

Re: Slow data

Hey, they are just as fast as anything else around here... they are running on the fastest network... AT&T's HSPA+. It just depends on what neck of the woods you are in. The phone itself is really fast too...
nysports4evr

join:2010-01-23
kudos:1
Really? Data is slow because "it's an iPhone"?

That's not how it works.

Dude111
An Awesome Dude
Premium
join:2003-08-04
USA
kudos:11
In my opinion its sad they are wasting thier time and resources on this DIGITAL GARBAGE!!!!!

Verizon is an excellent LANDLINE company (Or they used to be) and its sad they are putting more and more effort into this crap thats not as good as thier analogue landline service has ever been...
BiggA

join:2005-11-23
EARTH

Re:  

I hope you're being sarcastic. It doesn't matter if it's the best landline in the world... it's a product that has negative future growth potential, no matter how "good" it is.
FloridaBoy

join:2009-06-22
Bradenton, FL

Income

Its interesting what Fios has done for this company on the landline side. Even with the loss of traditional POTS they continue to see, small, income and revenue gains.

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA

Yet my bill is $170 per month

I pay $170 something per month to Verizon for my iPhone and mobile broadband card.

joe01880

join:2007-10-26
Wakefield, MA
Reviews:
·Verizon FiOS

Re: Yet my bill is $170 per month

said by IowaCowboy:

I pay $170 something per month to Verizon for my iPhone and mobile broadband card.

thats your own fault
BiggA

join:2005-11-23
EARTH
That's WAY too much. Get MyWi and tether...

Majestik
World Traveler
Premium
join:2001-05-11
Tulsa, OK
said by IowaCowboy:

I pay $170 something per month to Verizon for my iPhone and mobile broadband card.

Holy crap that's high.
How is that possible?
--
The adventure continues...Sanctuary....

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Comcast
·Verizon Broadban..

Re: Yet my bill is $170 per month

said by Majestik:

said by IowaCowboy:

I pay $170 something per month to Verizon for my iPhone and mobile broadband card.

Holy crap that's high.
How is that possible?

$69 for unlimited voice, $30 for unlimited data, $5 for 250 text messages, $10 for Assurion coverage, and $50 for 5 GB on my mobile broadband card.

Not to mention the taxes and fees.
--
All of my CPE (including my EMTA) is customer owned. The only Comcast owned equipment in my house is the CableCards in the two TiVO boxes I own.
BiggA

join:2005-11-23
EARTH

Re: Yet my bill is $170 per month

Cut out the data card, and cut the Assurion, and you'd be back close to normal. Oh, and unlimited voice plans don't make sense, the plan down is effectively unlimited anyways.

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Comcast
·Verizon Broadban..

Re: Yet my bill is $170 per month

said by BiggA:

Cut out the data card, and cut the Assurion, and you'd be back close to normal. Oh, and unlimited voice plans don't make sense, the plan down is effectively unlimited anyways.

I'll probably cut the Assurion when my line is eligible for an upgrade as the replacement cost of an iPhone is $650 (which is nearly the cost of my rent). As for the unlimited voice, I do use the phone quite a bit, especially at Grandma's house. I also use the data card quite a bit when I am on the go.
--
All of my CPE (including my EMTA) is customer owned. The only Comcast owned equipment in my house is the CableCards in the two TiVO boxes I own.
BiggA

join:2005-11-23
EARTH

Re: Yet my bill is $170 per month

I think Apple would replace it for $200. Also, if it broke, you could add a line at that point, for $10/mo.

22GB? Holy $*%

jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1
I pay $89 for unlimited voice and text, plus an additional $100 for 22 GB of data for my Verizon HTC Rezound, before 20% discounts are applied through my employer.

It's wonderful, and I love it, but it's expensive.

45612019

join:2004-02-05
New York, NY
Stupidity.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Some analysis & presentations from Verizon

The Wall St presentation:
»www22.verizon.com/idc/groups/pub···ides.pdf

Summary of financial info:
»www22.verizon.com/idc/groups/pub···etin.pdf

Financial statements, including the yearly numbers and not just the qtrly results:
»www22.verizon.com/idc/groups/pub···_pdf.pdf

One interesting chart shows Verizon is spending less (AS A % of REVENUE) on capital improvements each year:


--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/2012-election/


Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: Some analysis & presentations from Verizon

4th qtr Verizon conference call:
»www.media-server.com/m/p/73v6zoha
VerizonCynic

join:2006-10-25
Lakewood, CA
Somebody over there needs to call Bain Capital..quick

DrStrangLov

@12.189.32.x
said by Linklist:

One interesting chart shows Verizon is spending less (AS A % of REVENUE) on capital improvements each year:

Changing equipment on towers is not the same cost as installing a new tower plus equipment.

Hence, fewer towers are installed, but equipment upgrades decrease total expenditures.
BiggA

join:2005-11-23
EARTH

Conclusion: more FIOS

I should think that from those results, they should be pushing to go to 100% FIOS coverage among their landline areas, but yet they are not...

HaloFans

join:2006-12-18

Re: Conclusion: more FIOS

Hardly.

Investors will read this and say more wireless customers plz.

The wired division is not doing well as Karl mentions that ADSL customers continue to leave.

See 25 replies to this post
axus

join:2001-06-18
Washington, DC
Actually this would explain why they stopped FIOS. Fiber to the home is good for the next 50 years, but expensive for the first 10.

NelsonMuntz

@lmco.com

HA-Ha!

Now if we're really lucky, the Death Star will take it in the thermal exhaust port, too...
tmc8080

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

higher bills

Verizon is smacking customers across the face wtih higher bills. New "UNFEES" like a REGULATORY RECOVERY FEE are making the rounds at Verizon. When you do this, your pissing customers off and forcing them to drop triple play packages which will have $15 in taxes & fees plus a $5-25 set-top rentals.

These numbers are a loss due to paying upfront on a block of iphone subidies. Apple gets money upfront for a certain number of customers whether Verizon signs them up or not. That's what accounts for a large chunk of this quarterly loss. The take-away.. BUY APPLE STOCK, DUMP VERIZON STOCK (3 months ago)!
Zach 58
Premium
join:2006-11-26
NW Minnesota

Re: higher bills

Yep, just noticed a jump in the "Administrative Fee" as of this month's invoice. If there is one thing Verizon et. al. (looking at you 'T') does with reliability it's make money. Claims of any other financial outcome are pure bullshit.
dingo
Premium
join:2009-02-08
kudos:1

It happens every 3 years

Of couse they're broke...they're negotiating a contract. AT&T will be in "dire straights" come April as well.
--

If people realized what was really important, there would be a shortage of fishing poles.

ByeByePhone

@comcastbusiness.net

So long subsidized phones

I really hate that. Now we'll be paying $700 for new phones.

Better off getting unlocked phones off Amazon.

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