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Unlimited Offering Helps Verizon Gain 358,000 Postpaid Phone Customers during Q2 2017

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Verizon Wireless has recently released its earnings report for the second quarter of this year, and it appears that its decision to launch an unlimited data plan has paid off, allowing the carrier to gain 358,000 net postpaid phone customers. Along the way, the Big Red also managed to surpass expectations set by analysts -- its 358,000 net postpaid phone additions comfortably beats the 75,000 set by Wells Fargo, while the 614,000 total postpaid net adds it posted for the most recent quarter also outperformed the 112,000 also projected by Wells Fargo.

Its results for Q2 2017, in terms of postpaid phone customers, mark a significant improvement as compared to its performance during the first three months of this year, wherein it lost 289,000 postpaid net phone customers. While it did launch its unlimited data plan back in February early this year, the damage may have already been done. Still, Verizon Wireless was expected to lose almost 400,000 customers during Q1 2017 before it debuted its unlimited offering.

Apart from posting an impressive number of postpaid phone user additions, Verizon Wireless also took the opportunity to point out how well its network is handling the increased traffic brought on by those who signed up for its unlimited data plan. As explained by Matt Ellis, the chief financial officer of the company, recent studies conducted by various third party testers indicate that the Big Red continues to perform well, especially in terms of connection speed and overall quality of the network.

Ellis might have referred to the report recently released by RootMetrics. In that report, Verizon Wireless was named as the best carrier overall among the Big Four (which also include AT&T, T-Mobile, and Sprint).

According to its latest quarterly report, Verizon Wireless also recorded total wireless revenue of $21.3 billion (beating analysts’ expectations of $20.8 billion), and registered a wireless service revenue of $15.6 billion. For Q2 2017, the Big Red’s average revenue per account (ARPA) was $134.89, which just fell short of the $135.80 projected by Wells Fargo.


Source: Washington Post

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12 comments:

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  1. I really hate Verizon and I cheer when they do poorly, boo when they do well.

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    1. Why is it weird Zach? he just hates the company, that is what it translates to.

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  2. You may hate Verizon Corporate, but NOBODY beats their coverage!

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    1. I finally got coverage in my area from big red. Surprised it didn't happen sooner with the exorbitant fees they charge. Only businesses can afford to pay their fees!!

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    2. Only businesses...and more customers than any other carrier. And about as much Sprint and T-Mobile combined.

      Coverage is king and it trumps all other considerations, and Verizon has the best coverage so it is not surprising that they get more customers than anyone else.

      Really, you need to look up carrier customer totals before you just start making up stuff out of your hat

      It's not like people reading this can't or don't ever verify things.

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    3. "Coverage is king..."
      Nation-wide coverage should only be important for a relatively small percentage of people.
      Many people don't travel extensively; travel within limited areas; or travel only a few times year, so the most important thing is how their wireless network works wherever they spend the most time.
      "Metro-level performance provides the strongest gauge of a network for consumers." - RootMetrics statement.
      RootMetrics defines metro areas as not just city centers, but also residential suburbs, business districts, recreational areas, and the highways that connect them. It tests network performance in all those areas. Verizon still won, but it scored 41 fewer first-place wins than in the previous period, while AT&T, and T-Mobile scored more. "AT&T and T-Mobile made big speed and reliability improvements in metro areas." - RootMetrics.
      Even Sprint, the least successful carrier in the report, saw "significantly boosted data speeds and reliability at the metro level."
      Source: The Motley Fool, July 26

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    4. Nationwide coverage is actually important for a strong majority of customers: it is the main reason that Verizon and AT&T have the most customers, why T-Mobile has strong customer growth as it significantly increases coverage, and why stagnant Sprint with a tiny footprint is an ever more distant fourth place.

      Many don't travel, but MOST do, with the average American going to a dozen states.

      Good nationwide coverage is not only the way to profits and success for carriers, it also gives the best service for most customers.

      The RootMetrics statement you quote is good for landlines but not mobile, and the smart person should learn to ignore the clickbait/junk site Motley Fool. Look instead at actual customer choices and needs instead of what we wish they want.

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    5. "Many people don't travel extensively; travel within limited areas; or travel only a few times year, so the most important thing is how their wireless network works wherever they spend the most time."

      Not important only according to you. Even if someone leaves their house only once a year, they want their phone to JUST WORK where they go, and not have to worry about carrying two phones everywhere.


      Your ideal customer profile, who never leaves a "metro" area and is happy with poor coverage, does apply to some but it is a small minority of customers. That's why the carriers that just cover the nation, or strive to do so, get the vast majority.

      T-Mobile knows what customers need AND how to make the most profit ... so they look beyond the tiny minority who never leave "metro" areas and have bet their future on blanketing the nation.

      A good coverage map is the gold standard of carrier advertising. Because, where do Americans need coverage? America!

      The most important thing for most Americans is a carrier that works everywhere and not in just a small area. That's the reality. If what you said were true...and Americans were mostly shut-ins with travel phobias, US Cellular and Sprint would have the most customers.

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  3. unlimited is the way to go, mvnos need to learn that lesson

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    1. Not always affordable to offer it (high speed unlimited, at least.)

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    2. "unlimited is the way to go"

      I tend to think that way too because personally I use a decent amount of data (never below 10GB a month for years now). However, there are plenty of people with more modest data requirements (whether or not they have modest budgets as well) and I think there is certainly a place for carriers to serve these customers. If not major carriers, then these separately branded divisions or MVNO's.

      I know it is not fashionable to describe those with different data needs from one's own without insulting them or denying their existence, so excuse me for not following troll-trends.

      Because, to too many people, it's like something George Carlin would say:

      Anyone who uses more data than you is a data hog.
      Anyone who uses less data is Granny on a flip phone.

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