Press
Verizon Earnings Report: iPhone Effect Seemingly Non-Existent
Posted by Matt Buchanan at 7:20 AM on October 30, 2007
It looks like AT&T's impressive growth of 2 million additional wireless subscribers didn't take too much away from Verizon, who posted 1.8 million net additional subscribers for a total of 63.7 million, trailing AT&T's total by 2 million. Quarterly net income was down over half a billion, to $1.27 billion from $1.92 billion last year, though revenues of $23.77 billion beat Wall Street's bet of $23.6 billion.
FiOS rates are also growing, adding 202,000 TV subscribers for 717,000 total (wonder where this comes in), with FiOS internet pulling in 229,000 newbies. But FiOS rollout continues to scratch Verizon's piggy bank, knocking earnings down by 9 cents a share. The DSL front on the other hand is pretty bleh, with "unimpressive" growth, though it's obviously less important than growing out FiOS subscribers, given the amount of money they're dumping into the network. [Reuters]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
gadgetchic
Posted 6:45 PM 29/10/07
yeah i would have to agree with THISAINTSWEETTEA, most of the people i know who have verizon could care less about having the latest technology or there contracts wont allow them to get a new phone/leave without paying.
gadgetchic
drewkkake
Posted 6:30 PM 29/10/07
Agreed, Sqube - I've got a run-of-the-mill LG phone but I NEVER (ever) lose reception. I really don't care about an iphone enough to make that sacrifice. Verizon will (eventually) get something comparable.
drewkkake
Sqube
Posted 6:22 PM 29/10/07
Uhhh... nice troll, REVMCCOY, I guess?
Anyway, I don't find this surprising. People have never been with Verizon because of their trendy phones; they've been with Verizon because of the service. The iPhone isn't improving AT&T's reception.
Also, I'm one of the people surrounded by T-Mobile, Sprint, and AT&T customers whose signal isn't as consistently strong as mine. Sprint people can't even use their phone in my basement, while I never have any issues down there.
I should leave Verizon why again?
Sqube
RevMcCoy
Posted 6:05 PM 29/10/07
I don't like that Apple didn't destroy Verizon's business.
They deserve to go under because their competing against Apple' s partner.
For them to have new subscribers is not fair. Those should have been iPhone users.
RevMcCoy
matt buchanan
Posted 5:58 PM 29/10/07
@LillieDesigns: Sprint's earnings call is Nov. 1.
matt buchanan
image18301
Posted 5:58 PM 29/10/07
I'm switching to Verizon for a simple reason - here in the Poconos no other company has the reception they have. I never considered Verizon before, their phones aren't so appealing. Ultimately, reception is King.
So, for many people like myself, the choice in not really a choice...
image18301
thisaintsweettea
Posted 5:57 PM 29/10/07
@redman042: Not defending AT&T but i have never had a signal issue anywhere in Florida.
No 3G in my area yet, but never without service.
thisaintsweettea
redman042
Posted 5:53 PM 29/10/07
While the iPhone is very cool, I would never switch to AT&T to use it. I've been a Verizon customer for many years, and while it's true that their phone selection is always a bit behind, at least I usually get a nice strong signal with them. Can't say the same for AT&T. My brother is on that carrier and his phone never fails to drop my call when I talk to him.
I don't care how cool any phone is - if the carrier doesn't have enough towers then it's kinda pointless isn't it?
redman042
yoshi
Posted 5:49 PM 29/10/07
You're right. The iPhone had minimal impact on AT&T's and Verizon's wireless subscriptions.
Were talking 440,000 new wireless subscriptions for AT&T because of the iPhone.
yoshi
ianmac47
Posted 5:48 PM 29/10/07
Verizon is only holding onto me for now because I have a contract; when it expires, iPhone; I suspect this is true for many would be iPhone buyers. Meanwhile, I want Verizon FiOS yesterday, if for no other reason then because I hate Comcast-- if they would only make it available.
ianmac47
thisaintsweettea
Posted 5:45 PM 29/10/07
Probably because people using Verizon could care less about having a good handset. Their selection of available phones suck and always seem at least one generation (if not more) behind.
thisaintsweettea
boe
Posted 5:29 PM 29/10/07
Yeah - I'm curious how much Sprint lost in comparison to their increases.
boe
LillieDesigns
Posted 5:27 PM 29/10/07
Where can I find Sprint's numbers?
LillieDesigns
Mixiboi
Posted 7:00 PM 29/10/07
Yeah Verizon will, but unless they change, they will cripple it one way or another.
Wi-Fi
Bluetooth
Independent UI
Enemies of Verizon
Mixiboi
bandit
Posted 6:57 PM 29/10/07
I left Verizon for AT&T because of the iPhone. I have to imagine that there are many others who did the same, but Verizon has made up for the defections by catering to the low-end market with free RAZR phones, etc.
bandit
TKWarrior
Posted 8:52 PM 29/10/07
I use a Blackberry that's provided by my company, and I have to be reachable no matter where I travel. I've had units with Cingular/AT&T, T-Mobile, and now Verizon.
Verizon has been incredibly better in service when compared to the others (AT&T was crap). The areas I've seen this are South New Jersey, PA (Phila, north as Lehigh, west as Valley Forge), and NYC.
To each their own. I agree the latest and greatest handsets make it to the GSM networks first, but I've seen the "technology gap" get smaller over the years.
When I get a personal number again, I can't see myself choosing service over phone. If that great phone doesn't work, then you're just proving to everyone that it's just a glorified fashion accessory.
TKWarrior
xenobread
Posted 8:42 PM 29/10/07
@yoshi:
You are not making a very good sarcastic comment. Please read the article first.
xenobread
trugem
Posted 6:53 PM 29/10/07
I used to have Verizon, but got rid of it because AT&T had a better signal. Funny how this is opposite of the common theme through these comments. It all depends on where you live AT&T is better in some places, and Verizon is better in some places. I live in the San Francisco bay area, and here, AT&T is best.
trugem
Sqube
Posted 11:03 PM 29/10/07
Trugem, I wasn't trying to say or imply that any one provider always has a superior signal to someone else. The best signal depends on where you live. It just so happens that where I am, Verizon's got the best signal.
Bandit, Verizon can't cater to the low-end market for a very simple reason: they have the most expensive plans. I think a better explanation is that Verizon didn't lose a lot of people to AT&T because, as has been previously stated, people who are on Verizon are not focused on cutting-edge tech. Otherwise, they wouldn't be with Verizon. They'd be with AT&T and importing phones from Europe and/or Asia.
Sqube
devinburn
Posted 1:01 AM 30/10/07
Consumer reports consistently ranks Verizon higher than any of the other major carriers. Its kinda funny, but I see Verizon as the apple of the cell phone companies. They put their own limited/simple OS on their cell phones and make it very difficult to hack. That means they can fix your problems easier. And it shows in their customer service rankings. Obviously these are national rankings so it can vary depending on where you are, but for the most part Verizon ranks higher.
devinburn
yoshi
Posted 7:26 AM 30/10/07
@xenobread:
Who said I was being sarcastic? It just shows you that the iPhone hype... well... is just that, HYPE!
Oh... and all you fanboys that think AT&T got screwed on the deal, I suggest you run the numbers. AT&T is making 3-4 times what Apple makes in subscription revenue.
yoshi
enine
Posted 8:02 AM 30/10/07
Of course not, people who use verizon are people who actually use their phones. The majority of the world could care less about Apple and their products. I certainly wouldn't waste my $ on an iphone any more than I would the latest Nike shoes or Lexus wannabe SUV or Brittney Spears latest CD. There are those peope who do fall for the latest fads and they make all the headlines but the rest of the world doesn't waste their time.
enine
illpacin0
Posted 10:11 AM 30/10/07
See, what's funny is the last time I checked, I was able to record video, send & recieve MMS, watch TV and use my own MP3s as ringtones all on my Verizon Wireless phone.
illpacin0
Foxbat2
Posted 1:26 PM 30/10/07
It's amazing how many people like to state OPINION as fact. Ok....
Verizon has the best network, that's uncontestable. Largest 3G network too. Behind on the technology, I think not. They turned down the Iphone for many reasons. One, it is very limitted. No GPS, NO 3G, NO qwerty K-pad, NO removable battery, etc. Well over 70% of all verizon phones now have many more features than most out there from any other carrier. Please do your research before you state your "so called fact". Now if you're saying you just don't like the looks, well that's your opinion. Wait until X-mas time and then let me know if you still don't like the looks.
How about the fact that Verizon does 2 months of testing on every model before they carry it. As soon as customer complaints reach a certain level, which rarely happens, they discontinue it and then someone like Kricket starts to buy the model because now the demand is lowered and the price plummets.
WiFi? Well this I don't like, but from the suits up top they say it is for security purposes. UI? Belive it or not, MOST people do not like to have to relearn how to use their new phone all over again. This makes it so they are familiar with the layout and don't get frustrated that it's "Nothing like my old model".
Ah crap.....I knew this was going to get long. Ok, I'm done.
Iphone killer AKA the Voyager will soon be out. Also the Pearl 2 is getting ready to launch. This Pearl 2 is much much more advanced than the original model. Oh hell, the new samsung pda is pretty sweet too. Of course no love from the giz on that one. Does way more than the Iphone too!
Foxbat2
dink23
Posted 4:09 PM 30/10/07
Everything I have read shows Verizon with a 1.6 million gain of customers. Wonder why the Reuters article has an additional 200,000 customers in its report?
dink23
Silenthillnight
Posted 10:02 PM 30/10/07
@Sqube:
I'm with you on that. Whatever carrier has the best signal in your area is what you should go for. I have AT&T here because no other carrier other than T-Mobile gets signal in my condo. Verizon is ever dropping and Sprint signal is virtually non-existent.
But I would not advise people not to switch to AT&T just for the iphone. Being crippled with EDGE isn't worth it unless you live in an area where 3G isn't available.
Silenthillnight
techie14
Posted 9:36 PM 31/10/07
I have Verizon and I'm seriously about to switch to AT&T. In my area the coverage is about the same. That saying that Verizon customers do not care about the latest technology is totally false. I know many people who switched in the past few months when their contract expired because they're tired of waiting for a good phone and tired of hearing we're testing (adding Vcast, and crippling) crap. The Tilt is looking really good right now.
techie14