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Verizon Posts $2 Billion Loss
Largely Related to Pensions, iPhone Subsidy Costs
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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IndianaPilot
Premium Member
join:2002-11-23
Connersville, IN

IndianaPilot

Premium Member

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...

CurGeorge8
join:2005-05-02
South Park, PA

2 recommendations

CurGeorge8

Member

Re: Slow data

said by IndianaPilot:

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 Member
join:2008-02-21
right here

thegeek

Premium Member

Re: Slow data

but, but their apple product makes it faster because of the shiny logo!!!!!!111
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA to IndianaPilot

Premium Member

to IndianaPilot
If you want an iPhone, get AT&T. If you want Verizon, get a DROID with 4G LTE.

jgkolt
Premium Member
join:2004-02-21
Avon, OH

jgkolt to IndianaPilot

Premium Member

to IndianaPilot
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
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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 (banned)
It's cool, I'm takin it back
join:2000-03-14
Dallas, TX

93388818 (banned)

Member

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
Premium Member
join:2005-11-23
Central CT
·Frontier FiberOp..
Asus RT-AC68

BiggA

Premium Member

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.

sleuth3
Premium Member
join:2001-08-30
West Des Moines, IA

sleuth3 to 93388818

Premium Member

to 93388818
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 (banned)
join:2004-02-05
New York, NY

45612019 (banned) to IndianaPilot

Member

to IndianaPilot
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
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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
Premium Member
join:2010-01-23

nysports4evr to 45612019

Premium Member

to 45612019
Really? Data is slow because "it's an iPhone"?

That's not how it works.
19579823 (banned)
An Awesome Dude
join:2003-08-04

19579823 (banned) to IndianaPilot

Member

to IndianaPilot
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
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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

FloridaBoy

Member

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
Lost in the Supermarket
Premium Member
join:2010-10-16
Springfield, MA

IowaCowboy

Premium Member

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

1 recommendation

joe01880

Member

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
Premium Member
join:2005-11-23
Central CT

BiggA to IowaCowboy

Premium Member

to IowaCowboy
That's WAY too much. Get MyWi and tether...

Majestik
World Traveler
Premium Member
join:2001-05-11
Tulsa, OK

Majestik to IowaCowboy

Premium Member

to IowaCowboy
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?

IowaCowboy
Lost in the Supermarket
Premium Member
join:2010-10-16
Springfield, MA

IowaCowboy

Premium Member

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.
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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
Lost in the Supermarket
Premium Member
join:2010-10-16
Springfield, MA

IowaCowboy

Premium Member

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.
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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 Member
join:2000-07-19
Sterling, VA

jmn1207 to Majestik

Premium Member

to Majestik
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 (banned)
join:2004-02-05
New York, NY

45612019 (banned) to Majestik

Member

to Majestik
Stupidity.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Some analysis & presentations from Verizon

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

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

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

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

FFH5

FFH5

Premium Member

Re: Some analysis & presentations from Verizon

4th qtr Verizon conference call:
»www.media-server.com/m/p ··· 73v6zoha
FrontirCynic
join:2006-10-25
Long Beach, CA

FrontirCynic to FFH5

Member

to FFH5
Somebody over there needs to call Bain Capital..quick

DrStrangLov
@12.189.32.x

DrStrangLov to FFH5

Anon

to FFH5
said by FFH5:

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
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

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

HaloFans

Member

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.

•••••••••••••••••••••••••
axus
join:2001-06-18
Washington, DC

axus to BiggA

Member

to BiggA
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

NelsonMuntz

Anon

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

tmc8080

Member

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
Premium Member
join:2006-11-26
Llano, CA

Zach

Premium Member

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.
dingo4
Premium Member
join:2009-02-08

dingo4

Premium Member

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.

ByeByePhone
@comcastbusiness.net

ByeByePhone

Anon

So long subsidized phones

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

Better off getting unlocked phones off Amazon.