Home

Share this Story

For Q1 Verizon Reports Highest Growth Rate in 3 Years and Sells 2.1 Million LTE Phones, Still Needs to Charge You a $30 Upgrade Fee

Verizon reported their Q1 2012 earnings this morning and as seems to be expected, they were up year-over-year (8.9% to be exact in retail and 7.7% in service). They tacked on 734,000 retail customers, bringing their total up to 93 million. They also sold 2.9 million LTE devices (phones, tablets and the new iPad) (2.1 million were phones) along with 3.2 million iPhones. Data now makes up for 43% of service revenues which is at $4.3 billion, up 36%.

This all comes on the heels of Verizon’s announcement that they would need to charge a $30 upgrade fee when existing customers buy new phones on contract. The reasoning for the fee was explained as a means to continue to fund their workshops and development of bloatware Verizon-branded apps. Makes sense, right? Since they are clearly struggling so much…

The full press release is below if you are into reading such things. For even more details, you will want to check out the full earnings call transcript

 

Verizon Reports Double-Digit Earnings Growth And Increased Operating Cash Flow In First-Quarter 2012

Verizon Wireless Increases Service Revenues by 7.7 Percent, Expands Margins; Demand Remains Strong for FiOS and Strategic Services

04/19/2012

 NEW YORK, NY —

1Q 2012 HIGHLIGHTS

Consolidated

  • 59 cents in diluted earnings per share (EPS), compared with 51 cents per share in 1Q 2011 – a 15.7 percent increase.
  • $6.0 billion in cash flow from operating activities, up $922 million compared with 1Q 2011.
  • 4.6 percent year-over-year quarterly revenue growth.

Wireless

  • 7.7 percent year-over-year increase in service revenues in 1Q 2012; 8.9 percent year-over-year increase in retail service revenues; highest growth rate in three years; data revenues up 21.1 percent; 28.6 percent operating income margin and 46.3 percent Segment EBITDA margin on service revenues (non-GAAP).
  • 734,000 retail net customer additions, excluding acquisitions and adjustments, includes 501,000 retail postpaid net customer additions; continued low retail postpaid churn of 0.96 percent.
  • 93.0 million total retail customers; 88.0 million total retail postpaid customers.

Wireline

  • 193,000 FiOS Internet and 180,000 FiOS Video net additions, with increased sales penetration for both products; net increase of 104,000 broadband connections from 4Q 2011; FiOS Internet customers now total more than 5 million.
  • 8.1 percent year-over-year increase in consumer ARPU; 63 percent of consumer revenues generated by FiOS.
  • 11.6 percent increase in strategic services revenues, representing 51 percent of global enterprise revenues.

Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported double-digit percentage growth in year-over-year quarterly earnings results and increased cash flow in first-quarter 2012. Verizon Wireless posted another quarter of profitable revenue growth, while Verizon’s Wireline segment posted another quarter of customer and revenue gains for FiOS fiber-optic services, and increased sales of strategic business services.

Verizon reported 59 cents in EPS in first-quarter 2012, an increase of 15.7 percent compared with first-quarter 2011 earnings of 51 cents per share. There were no adjustments in either period.

‘On Track to Continue to Deliver Strong Results’

“Verizon delivered double-digit earnings growth and strong cash flow this quarter,” said Lowell McAdam, Verizon chairman and CEO. “We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time.”

He added: “We remain confident in our ability to take advantage of the growth opportunities we see, and we are focused on driving operating efficiencies. We are on track with our plans and expect to continue to deliver strong results.”

Strong Cash Flows, Increased Capital Efficiency

In first-quarter 2012, Verizon’s total operating revenues were $28.2 billion on a consolidated basis, an increase of 4.6 percent compared with first-quarter 2011.

Consolidated operating income was $5.2 billion in first-quarter 2012, compared with $4.5 billion in first-quarter 2011. Consolidated EBITDA (non-GAAP, earnings before interest, taxes, depreciation and amortization) totaled $9.2 billion in first-quarter 2012, compared with $8.5 billion in first-quarter 2011.

Cash flow from operating activities totaled $6.0 billion in first-quarter 2012, an increase of $922 million compared with first-quarter 2011. Capital expenditures totaled $3.6 billion in first-quarter 2012, a decrease of $798 million compared with first-quarter 2011, as Verizon improved its capital-to-revenue efficiency. Free cash flow (non-GAAP, cash flow from operations less capex) was $2.4 billion in first-quarter 2012, compared with $672 million in first-quarter 2011. Verizon expects increasing free cash flow levels through 2012.

Verizon Wireless Delivers Strong Financial, Operational Results

In first-quarter 2012, Verizon Wireless delivered strong growth in revenues and retail customers; increased retail postpaid ARPU (average monthly service revenue per user) and smartphone penetration; and delivered a strong EBITDA margin.

Wireless Financial Highlights

  • Service revenues in the quarter totaled $15.4 billion, up 7.7 percent year over year. Retail service revenues grew 8.9 percent year over year, to $14.9 billion, an increase of 110 basis points over fourth-quarter 2011 and the highest growth rate in three years.
  • Data revenues were $6.6 billion, up $1.1 billion – or 21.1 percent – year over year, and represent 42.9 percent of all service revenues. Total revenues were $18.3 billion, up 8.2 percent year over year.
  • Retail postpaid ARPU grew 3.6 percent over first-quarter 2011, to $55.43. Retail postpaid data ARPU increased to $23.80, up 16.0 percent year over year. Retail service ARPU grew 3.4 percent, to $53.66.
  • Wireless operating income margin was 28.6 percent. Segment EBITDA margin on service revenues (non-GAAP) was 46.3 percent.

Wireless Operational Highlights

  • Verizon Wireless added 734,000 retail net customers in the first quarter, including 501,000 retail postpaid net customers. These additions exclude acquisitions and adjustments.
  • At the end of the first quarter, the company had 93.0 million retail customers, a 5.2 percent increase year over year, including 88.0 million retail postpaid customers.
  • At the end of the first quarter, nearly 47 percent of Verizon Wireless’ retail postpaid customer phone base were smartphones, up from 43.5 percent at the end of fourth-quarter 2011.
  • Retail postpaid churn was 0.96 percent, an improvement of 5 basis points year over year. Total retail churn was 1.24 percent, an improvement of 9 basis points year over year.
  • Verizon Wireless continued to roll out its 4G LTE mobile broadband network, the largest such network in the U.S. As of today, Verizon Wireless 4G LTE service is available to more than 200 million people in 230 markets across the U.S. – more than two-thirds of the population.
  • Verizon Wireless introduced five new 4G LTE devices in the first quarter 2012: the Droid 4 and Droid Razr Maxx by Motorola, the Spectrum and Lucid by LG, and the Samsung Galaxy Tab 7.7. In addition, the Apple iPad with Wi-Fi + 4G became available from Verizon Wireless in mid-March.

FiOS Continues to Add Customers, Increase Sales Penetration

In first-quarter 2012 in the Wireline segment, continued strong demand for FiOS services led to revenue growth generated by U.S. consumer wireline customers and continued gains in FiOS sales penetration. Globally, continued strong sales of strategic services helped mitigate lower revenues resulting from Verizon’s targeted efforts to eliminate products that do not meet the company’s profitability requirements, and continued secular pressures in wholesale.

Wireline Financial Highlights

  • First-quarter 2012 operating revenues were $9.9 billion, a decline of 2.0 percent compared with first-quarter 2011. Wireline operating income margin was 1.6 percent, compared with 2.8 percent in first-quarter 2011, and Segment EBITDA margin (non-GAAP) was 22.6 percent, compared with 23.6 percent in first-quarter 2011.
  • Consumer revenues grew 1.7 percent compared with first-quarter 2011. Consumer ARPU for wireline services was $97.88 in first-quarter 2012, up 8.1 percent compared with first-quarter 2011. ARPU for FiOS customers continued to total more than $148 in first-quarter 2012. FiOS services to consumer retail customers represented 63 percent of consumer wireline revenues in first-quarter 2012.
  • Global enterprise revenues totaled $3.9 billion in the quarter, up 0.9 percent compared with first-quarter 2011. Sales of strategic services – including Terremark cloud services, security and IT solutions, and strategic networking – increased 11.6 percent compared with first-quarter 2011 and represented 51 percent of global enterprise revenues in first-quarter 2012.

Wireline Operational Highlights

  • Verizon added 193,000 net new FiOS Internet connections and 180,000 net new FiOS Video connections in first-quarter 2012. Verizon had a total of 5.0 million FiOS Internet and 4.4 million FiOS Video connections at the end of the quarter.
  • FiOS penetration (subscribers as a percentage of potential subscribers) continued to increase. FiOS Internet penetration was 36.4 percent at the end of first-quarter 2012, compared with 33.1 percent at the end of first-quarter 2011. In the same periods, FiOS Video penetration was 32.3 percent, compared with 29.1 percent.
  • Broadband connections totaled 8.8 million at the end of first-quarter 2012, a 3.3 percent year-over-year increase. The net increase of 104,000 broadband connections from fourth-quarter 2011 was the highest quarterly net-add total since second-quarter 2009.
  • Verizon continued to expand its next-generation 100 gigabit-per-second network, enabling several more network routes in the U.S. and two additional routes in Europe.
  • The company also took advantage of the fully activated Europe India Gateway submarine cable system. The 15,000 kilometer high-bandwidth optical system, with a design capacity of 3.84 terabits per second, provides much needed diversity for future Internet, e-commerce, data, video and voice services from the United Kingdom to India.

Strategic Agreements Unveiled for Global Sales

Verizon Enterprise Solutions, a sales and marketing organization that harnesses all of Verizon’s cloud, mobility and technology solutions for business and government customers globally, unveiled strategic agreements in first-quarter 2012 to develop offerings in mobile health, electronic health records management and secure e-prescribing.

The organization also announced a digital-signage solution for retail customers, powered by Verizon’s 4G LTE network and infrastructure; unveiled new telematics solutions for the automotive and transportation industries; and rolled out a cross-platform open video communications capability.

  • Guest

    The real reason for the 30 dollar fee is because of the IPHONE. It has caused less margins for all carriers. Apple gets such a huge piece of every iphone customer that verizon and all carriers have to find ways to make it up.

  • rob

    You really think government is going to lift a finger? Let a lone bat an eyelash over this. Then your dreaming as we can’t even get them to do anything to the oil companies.

  • Executor 32

    I’m just glad my upgrade became available on the 18th, so I got my shiny new Galaxy Nexus without having to pay even more for it.  Instead of charging everyone an upgrade fee, why not just charge the people who actually attend their workshops an attendance fee, and let those of us with functioning brains and the ability to use the Google go without being charged for something we don’t use?  As for their bloatware development, how about they use some of the $550mil that Microsoft paid them for switching to Bing to fund it?

  • jedijesus95

    Verizon just said “Kiss the ring bitch!”

  • Verizoncankissmybutt

    Couple billion dollar profit just isn’t enough. F@#& VZW. Big Red is too greedy for me!

  • Havoc70

    No surprise Verizon is being a bunch of D bags, its all about the funds they can steal from your pocket not the services they “provide” cough cough.  VZ has the HIGHEST cost of plans out there, they make billions and still find it necessary to FUK their customers over as much as possible.  FU VZ.

    To those that say the other carriers charge an upgrade fee and VZ’s is less, well then be my guest and join VZ network to pay MORE for your plan AND the upgrade fee. 

    If they dropped their “Bend You Over” pricing for plans then hey ok, the upgrade cost would make more sense, otherwise Go F yourself

    • orion11100

      IF you want the best network then be prepared to pay a premium for that service. Sheesh, what a bunch of whiners! 

      • Havoc70

        your free to have your opinion as am i you don’t like it you can always move to Russia………. 
        orion11100 =Sheeple

        • orion11100

          Well you sure told me! (rolls eyes)

  • smellyfeet

    everybody charges an upgrade fee and has been for years.  verizon only started recently.  droid life editors are idiots. 

  • Dliuzzo110

    Do I think that large corperations purposely take advantage of consumers? Yes. Do I think they would cahoots with each other to raise prices? Absolutely with out a doubt. But the fact is smartphones are not a necessity they are a luxury. I can’t complain if my two favorite escort companies cahoot to raise prices. I think that callusion is a problem, just not on a smartphone platform. This is a 1st world problem

    • SolipsisticPsychologist

      With you and Orion there is hope yet for facts and logic.

  • radiohead14

    i’d gladly pay the $30 if they removed their ugly carrier branding off my phone. now that would be a good service for the customers

  • Blah

    A full on federal investigation needs to be done on this. Verizon is getting out of hand with all of this crap. 

    • rob

      Just a waste of tax payers dollars. How many time was big oil in front the senate hearings for price gouging? Anything happen over all those hearings? You put to much faith in our government. Only time they found someone guilty was MLB players for lying about steroids use.

  • http://www.youtube.com/kimirPORTALS kimir

    Scumbag Verizon.

  • http://twitter.com/BriCo84 Brian Cohen

    I agree the $30 fee is a slap in the face….good thing I’m a business customer and am not subjected to such ridiculousness (I would not be with verizon as a retail customer due to things EXACTLY like this).  

  • Hogasswild

    Sounds like it’s time to take one of the baby bells and create a couple baby baby bells.

    • Azndan4

       My thoughts exactly.

    • Tesseract 3

      Indeed.

  • meta96

    … are 2.1 mil LTEs on verizon good or bad?

    Q4/2011: 1,7mil LTE versus 4,3mil iPhones
    Q1/2012: 2,1mil LTE versus 3,2mil iPhones

    LTE is rising.

    • http://www.facebook.com/jonathanf Jonathan Fingas

      That’s mostly helped by the sheer number of OEMs and Verizon’s “no 2012 smartphone goes without 4G” credo.  It’ll be interesting to see if Android can close that gap any further before the next iPhone hits.  It’s somewhat significant that the best-selling phone on Verizon is still a 3G phone (and, of course, not Android).

      • EdubE24

        Also don’t forget the “double your data” by signing on with a 4g phone promotion. That ran for quite a while.

      • Kebova1

        That is a unfair statement all android phones need to be counted against the 1 apple phone

  • Michael_NM

    $30 for workshops and bloatware? Force us to have apps we dont’ use, and develop workshops we won’t attend, and then make us pay for them? FU VZW!!!

    • http://twitter.com/FactsSchmacts Facts Schmacts

      Then switch carriers.

      • jynylr

        Not everyone can just “switch carriers.” 

        • http://twitter.com/FactsSchmacts Facts Schmacts

          Why not?  Is VZW the only carrier available to you?  

          • mustbepbs

            It’s called a contract. It lasts about 2 years and is very expensive to cancel. It’s weird, I know.

          • http://twitter.com/FactsSchmacts Facts Schmacts

            When the contract is up…switch carriers. 

          • Tesseract 3

            To another one of the colluding major or other carriers who has the same fee. Or did you not read the part where they all have this same upgrade fee now? You can’t just switch carriers to avoid it because they all do it. It is perfectly reasonable to complain to a company with which you do business and ask for better terms. It is a normal part of a business negotiation process.

          • orion11100

            Odd, it looks like people are complaining to a blog to me.. not to the carriers.

          • Tesseract 3

            Sigh. I didn’t think I would have to explain that. Fine. I hope people do complain directly to the carriers, I believe one of the earlier posts did have a petition that people were circulating to complain directly to Verizon about it. Many people will complain, and I encourage them to. It was a general statement. But I do believe people have every right to complain both on a blog and to the carrier’s themselves, and I think they should do both. I have no doubt the carriers do read these blogs.

          • orion11100

            You know it’s one thing to complain to the company implementing the policies (I’m all for that) but it’s an entirely different “thing” to complain to the government in an attempt to get your bill lowered. It’s not the place of government to tell any of us what we can or can’t charge for the products and services we sell. Do we really want to open that can of worms whereby some entitlist thinks they have a right to cell service at a certain price?

          • Tesseract 3

            Ever heard of collusion? Please look up collusion and it’s history in business. I am not saying the government should control everything, don’t worry about that. But collusion can be a real problem. If a particular necessary service is controlled by only a few entities who collude to inflate the price way higher than necessary than yes it is a problem, and yes the government can be reasonably asked to step in.

          • orion11100

            Your argument rests on the premise that having a cell phone is a necessary service which is, of course, a flawed premise. Try again.

          • Franklin

            Necessary is an opinion. I think a vast majority would agree it has become necessary.

          • orion11100

            Necessary is not a matter of opinion and just because a “vast majority” claims it is does not make it so. 

          • SolipsisticPsychologist

            He does make a valid point. Many people the world over survive without utilities. They may not have the best or happiest lives by far, but it is definitely a luxury to have these things, just like phones, and we should be grateful to have them. Hell I’m pretty sure some factions of the Amish in this country get by without indoor plumbing, but they don’t view those things as a necessity because they are not, they are a luxury, and I’m very, very grateful to have them. The biggest way to show you won’t stand for these practices, is with your wallet. If that means having to have a dumb phone or even no cell phone at all, well then so be it, that shows how much you’re willing to have conviction, and in the end, smartphones are extremely high on the list of lives luxuries. And there is no way I’d ever believe that company would force you to have a phone for work, without them providing it, or them providing the extra money or ample paycheck to support it.

            Whether that means you can only afford an older dumb phone and that makes you unhappy, or you choose to not spend your money wisely and allocate funds for the needed work phone, well that falls on you and you alone. I’ll never for one second agree what Verizon is currently doing and has recently been doing, isn’t anything but pure greed. I detest it. But I’ll do the smart thing and show my disapproval with my wallet. In the end a smartphone is still just going to be a luxury item.

          • Franklin

            Electricity, running water usedto be luxuries….takethat premise and stickit where the sun don’tshine

          • orion11100

            .. and they still are. I despise entitlists.

          • mustbepbs

            And timing 3+ lines that are all very active to be up at the same time is simple, right? Do you just not think or are you incapable?

          • Tesseract 3

            It’s okay, he’s not built for logic. My guess is Fats Schmacts is a Verizon Agent. And Orion is a libertarian ideologue who thinks that we will solve all of the worlds problems by removing all government regulations because companies can be trusted to be nice with no one watching them. It’s a very naive worldview.

          • orion11100

            The only problem the government needs to resolve is when someone’s rights are actually being violated.. such is not the case in this instance.. paying a certain price to upgrade your phone is not a right you can exercise simply because doing so violates the rights of the carrier to charge whatever the hell they feel like charging for their services. Let the market dictate if the charge is justified or not. If enough people cancel their service then they policy will change.. that much I promise you. 

          • http://twitter.com/FactsSchmacts Facts Schmacts

            Your guess is wrong.  I’ve never worked for VZW or any other carrier or any of their ad companies or blah, blah, blah.  I’m a consumer, just like you.  I just don’t buy into the whole self-entitlement argument.

          • LegalAmerican

            He’s just trying to be illogical.  Saying “Then Switch Carriers” is stupid and he knows it.  If VZW stole 500.00 from you, would you just not care and say “Switch Carriers” ?  No, you’d take issue with it and try to correct the problem.  To some people, 30.00 is comparable to 500.00 for others.  I for one, refuse to just keep quiet and take the repeated shafting.  If others enjoy getting screwed hard by VZW, then that’s cool for them (Facts Schmacts)

          • orion11100

            You can’t steal from the willing… there’s some sound logic for you.

          • Tesseract 3

            LOL wow.

          • DroidFann

            Facts & orion, speak like typical corporate stooges who feel entitled to make up services to customers and force it on them when they know they don’t need them all in the name of profiteering 

          • Loki

            Yeh, they must be shareholders in Verizon

          • orion11100

            No, but you realize anyone can purchase their stock right?

          • orion11100

            What is forced on you?? You get to say NO and there’s nothing they can do about it… or you pay what they are asking and move on with life… which is what I’m sure the vast majority of you will end up doing come upgrade time and they know it!  

          • Mhuttyone

            Your dumb and a sheep

          • http://twitter.com/FactsSchmacts Facts Schmacts

            No, I’m not trying to be illogical.  I’m just effin’ tired of the self-entitlement crowd bitching and whining and moaning about someone not giving them something. If you don’t like the way VZW does business or how much they charge you, jump ship when your contract is up.  It’s that simple.  Verizon has stolen nothing from any of us.  I could easily switch to any of the other carriers where I live, but I have no desire to do so, as their service is inferior to VZW’s.  

          • jack

            You do realise that in order for this fee to be charged you must be buying a subsidized phone, meaning you no longer are under contract

          • OhAaron

            Actually, Verizon is the only carrier available to me in my area.  I live right above Jacksonville, FL in a town with over 30,000 people in it.  You would think another company would have service here… NOPE! If you don’t have Verizon, you don’t get a signal indoors or everywhere outdoors.  

          • orion11100

            So your point is that you would gladly pay whatever Verizon asks you to pay to keep your cell service? You know you can always go back to your land line phone right? How about Sat phones?

          • OhAaron

            I didn’t say that I wanted to leave Verizon, idiot.  I was responding to the dude who acted like it wasn’t normal for people to only have access to one carrier in their area.  I’ve seen your other posts here, and it’s obvious that you let corporations hump you all day long, while you defend them.  I didn’t say anything about wanting to get out of my contract or leaving Verizon, so I think you just fail at reading comprehension.

          • orion11100

            What city do you live in?

            I didn’t say you wanted to leave Verizon or get out of your contract either so not sure where you are getting that from.. just that you have options should you ever want to.

            I let corporations hump me? I think my points have gone way over your head if you believe that so let me come down to your level. If you, as a consumer, are dumb enough to keep doing business with a company who you feel is over charging you for something then simply stop buying from them. Pretty simple isn’t it?… that’s what I do. 

          • Franklin

            Options? Talk about comparing apples and oranges. Land lines are not mobile, a huge facet of what we’re talking about here. If you want to find Aaron another apple he should consider then by all means please do. 

          • orion11100

            Yes options.. perhaps not the most ideal but still an option none the less. 

          • http://twitter.com/FactsSchmacts Facts Schmacts

            Seriously?  I live in a little city of 13k in a rural area of Virginia and I can choose between Verizon, US Cellular, AT&T, Sprint and T-Mobile.  It’s hard to imagine living near a major metro area like you do and only having one carrier.  That sucks.  

      • http://twitter.com/Jubmasterflex Jubby Salhi

        VZW was the last major carrier to hold-out on this “upgrade fee”, so even by switching carriers, you will no longer escape it…

      • http://www.JWesCampbell.com/ Wes Campbell

        :)

      • orion11100

        Better yet, don’t upgrade either…

        • SolipsisticPsychologist

          That’s exactly what I’m going to be doing. As long as they keep insisting on charging this extra fee, well no reason for me to prove them right when they said “Yeah, but our customers are dumb. They will bitch and moan till the cows come home. But in the end they will roll over and pay this new fee that we’ve implemented to help us pay for our third summer homes.” Well I won’t be a part of that. Having the latest and greatest doesn’t mean enough to me, so that I will be giving them more money for nothing. IF enough people showed self-control, and didn’t have to have everything right now! Well they would see that no one is upgrading after implementing this bogus fee, and hopefully get rid of it like they did with the convenience fee.

    • Tesseract 3

      The fact that prices keep rising for very little reason, and that now all major carriers have this stupid fee, is to me prima facie evidence of collusion. I think we need to call for the proper government agencies to investigate the carriers deeply, it seems clear to me that they big carriers are colluding to keep prices high, add extra fee’s, and generally work together to charge the consumer more and screw us over. When When someone says “you can just switch carriers”, but all the other choices are just as bad, that should be a good indicator of how bad things have become.

      • orion11100

        They all sell cell service and charge for it so they must be colluding.. the government should definitely get involved…. rolls eyes.

        • Tesseract 3

          Do you know what collusion is? Did you know big companies have been caught doing it in the past? Did you know it’s a real problem? But of course large companies who have a virtual monopoly over an industry with very little oversight would never consider working behind the scenes to keep prices high. Nope, nothing to see here. Bury your head in the sand. They have our best interests at heart guys, they just sell cell services, they don’t care about money!

          • orion11100

            I know what collusion is and I think companies have every right to charge what they want for their products just as consumers have every right to refuse to pay what they are asking. Go play the victim somewhere else. Further, the only interest they have in “us” is figuring out how to make money from doing business with us.. and there’s certainly nothing wrong with that so long as you are not forced to buy their products.. If charging a fee to upgrade is a mistake then they will soon experience the consequences of such irrational decision making. On the other hand, if they make a ton of dough and don’t lose enough customers they will have learned that their products and services were simply undervalued to begin with.

          • Tesseract 3

            You just don’t get it do you? They do not have every right to charge whatever they want if they are they only ones providing a service and they all work together to inflate the price way beyond what is reasonably necessary. Why? Because, unlike the nonsense you keep spouting, people do NOT have anywhere else to go if every carrier is doing it. What part of this is hard to understand? People cannot complain by leaving to avoid the fee if every carrier has the fee. It is called monopolizing an industry and creating a monopoly as well as colluding has been illegal in this country for a very long time for good reason. You are simply wrong. You can think companies have the right to do that, but it doesn’t make it legal. You don’t like the law? Go ahead and try to change it. But it’s the law. You Ayn Randian’s make no sense. Good lord.

          • orion11100

            Perhaps my position makes no sense to you because you simply refuse to accept reality. The reality is that cell phone service is not a right. You don’t have the right to force any provider to charge what you think is reasonable. Go without a cell phone if you don’t like what they are charging and if enough of you do just that then they have no choice but to lower their prices to remain in business. This idea that any company (apart from government intervention posing barriers to entry) can become a monopoly without the support from consumers represents a retarded view of how free markets work… and if consumers support a company to the point that it becomes a monopoly then who cares.. everyone is happy. This isn’t a discussion of what the law is, but, rather, a discussion of what it ought to be. The dangers of collusion are a figment of your imagination in this instance.

          • Franklin

            Then why is apple getting investigated/sued for “collusion” and “price-fixing” in the book market?

          • orion11100

            Again, because cry baby consumers think it’s ok to use government force to control what companies can charge for their products and services. If you as a consumer don’t like the cost of something then simply don’t pay it and let the company know why! Pretty simple right?

          • Donotcare

            @orion11100 – I understand conservative values, but you do not understand the law.  Look up States vs. Microsoft and US vs. ATT.  They didn’t force you to buy their software and service yet they were found to have a Monopoly.  Saying Verizon and ATT do not monopolize the wireless spectrum and rig pricing because we can choose to not have phones is a very convoluted argument.

          • orion11100

            I understand the law quite well just as I also understand that consumers chose to give Microsoft monopoly status by continuing to buy their products. It was Microsoft’s competitors who whined to the government about no t being able to compete.. so they harnessed government to strike down *success* all in the name of competition… corporatism at it’s worst if you ask me. I think you mean Duopolize in the case of ATT and Verizon (which isn’t even true). If you don’t like either of these companies there are several other options out there so quit crying about their position in the market when it is the consumers who continue to  voluntarily buy from them that put them in that position. 

          • delta echoe

             Maybe it isn’t a right, but as I’m sure you have noticed having a phone has been  becoming a necessity more and more as time goes on.  Hell, a good chunk of white collar jobs REQUIRE it and not all of them will pay for it.  The fact of the matter is, the cell phone companies are participating in practices that are unfair to the consumer and since cell phone use has become a pretty integral part of our culture, the economy suffers.

          • orion11100

            No matter how you frame it, cell phones have been, are now, and, always will be a luxury. That you really really like having one does not make it a necessity. 

            Cell phone practices are not unfair at all.. if you agree to pay what they ask then there is nothing unfair about that at all. If you think they are being unfair then simply don’t buy the luxury they are selling. The economy suffers?? Really?

          • Mhuttyone

            Dude it is the gov have programs for people that can’t afford it and that are on welfare you sound like a sheep

    • feztheforeigner

      Of course we must pay for the privelage to pay Verizon. Nobody likes Google Maps, of course we all want to pay Verizon monthly for their services! I’ll gladly pay Verizon in order to keep paying Verizon!

      /s

  • Leroy1983

    I know I’m gonna catch heat for this but if only 2.1 million LTE devices which include android phones, tablets & IPADS. Does that mean android manufactures didn’t have a great 1st quarter….especially on Verizon. You gotta add all those together & it sounds like it wasn’t all that great for the oem’s because Verizon is the biggest carrier for android phones. I do like the new htc phones though, is that even coming on Verizon

    My mistake it’s 2.1 million smartphone & 2.9 million LTE devices

  • bakdroid

    I don’t think it is so much as struggling, but that you are here because all the other carries suck….so pay up bitches!!

  • http://profiles.google.com/johnthacker John Thacker

    There were some questions regarding that from analysts, like Phil Cusick of JPMorgan:
    “And then second, we’ve been getting a lot of questions about your ability to control iPhone subsidies. And maybe you can help us out a little bit. It seems like the way you control costs on this is raising upgrade rates and sort of pushing back on timing, rather than cutting down on the actual
    subsidy of that device. Is there a level of control you have on those subsidies over time, or are you pretty much stuck with the way things are pricedtoday? Thanks.”

    also a Verizon comment:
    “As far as the $30 upgrade fee, I will remind everyone that we started back in 2010 on a strategy to start to take out some of the lucrative promotions we had around upgrades by deleting the New Every Two program, limiting the amount of early upgrades that we allowed. And now the implementation of the $30 upgrade fee, which we were the last carrier to implement. But it is important for the overall profitability of the business and the experience that we expect to have within this business.”

    I don’t understand the original D-L poster’s comment about implying that selling a lot of phones means that the upgrade fee is unnecessary.  Selling a lot of product at a lower margin isn’t a good thing for a company.

    • Franklin

      The original post is actually remarking that making this much profit renders the upgrade fee unnecessary.

      • http://twitter.com/FactsSchmacts Facts Schmacts

        “this much profit” looks to be about six cents on the dollar.  I don’t think that’s excessive.  

        • Tesseract 3

          So considering all your other posts in this thread, how much is Verizon paying you?

          • orion11100

            Nothing. I choose not to have cell phone service and somehow I am still alive, productive, and happy… so much for that “necessary service” part..

          • Franklin

            For the sake of this blog I hope you one day choose to not have internet access as well…

          • orion11100

            If you don’t like me posting here then the solution is pretty simple.. don’t read my posts. 

          • SolipsisticPsychologist

            I think it comes from a lacking of having experienced truly hard times. When you struggle, you’ll quickly start to notice what things in life are truly a necessity. I’d be hard pressed to find someone intelligent who would place food, water, and shelter, in the same category as a smartphone. But sadly, it still goes on being referred to as a “necessity”, when it’s clearly now and always will be a luxury item in life.

          • http://twitter.com/FactsSchmacts Facts Schmacts

            Not one damned penny.  I have two lines on contract and a tablet on month-to-month with VZW.  I have four other choices of carrier but I choose to stay with VZW because they have the best coverage and service.  Plus, they turned on 4g today, which makes me very happy.  

        • orion11100

          They are using the same arguments that those of  anti oil company and medical insurance company ilk use, that is, a refusal to look at profit margin instead of focusing on gross profit… 

          • Tesseract 3

            LOL wow.

          • SolipsisticPsychologist

            Yeah, hence the propaganda ads that appear on the webpage now. You wouldn’t normally expect to see that lack of ethics, especially for a tech site, definitely sad.

  • moelsen8

    can’t wait to see how “convenient” their family data plans are.  that’ll be a hoot.

    • Drew56

      Probably 3GB of shared data for $50 and $15 for every GB after that.  They will make bank when they have a family of 5 sharing 3 gigs and they use up 10 GB.

      • Synaptic13

        LMAO…That is on point bro!!!

    • Drew56

      Probably 3GB of shared data for $50 and $15 for every GB after that.  They will make bank when they have a family of 5 sharing 3 gigs and they use up 10 GB.

  • http://twitter.com/Jeremy_Bowling Jeremy Bowling

    I hope something like http://www.republicwireless.com works to make the VZWs and AT&Ts of the world a little more worried about what they charge. Without some lower priced competition that actually provides a decent service and good data plan, nothing will change.

    • huskerhog

      I checked out Republic Wireless using your link.  I’m not buying the hybrid concept.  I couldn’t find what kind of phone you get with what kind of cellular network they have.

      • http://twitter.com/Jeremy_Bowling Jeremy Bowling

        It won’t work for everyone. I am around WiFi 90% of the time, so for me it would be great. I believe they are using Sprint for cellular services, which I know isn’t too exciting. They are supposed to be introducing new phones soon, so I guess that will be the deciding point for me. I could definitely use the $100/month savings.

        • MKader17

          This shouldn’t be the exception. This SHOULD be the norm.

          Calls can easily go through wifi networks. Actualy if you have TMobile they have “cell extenders” for your home. What is it? Oh it’s just a device that hooks up to your wifi, acts as a tower and routes calls through your internet. AKA something that smartphones don’t need to perform the action.

          With VoIP on LTE the need for minutes and texts should go away. Everything should traverse through data. Then if Verizon would recognize they are a dumb data pipe we could buy what ever phone we wanted, have lower fees, no contracts, and happier people.

          BTW, a good friend of mine is on a plan where he bought his own phone and he gets 1000min 3000Txt and 100mb/month for $30. The data limit is low but you can download DroidWall and force programs to not use 3g data. He also told me that even if he goes over on data he would have to use over 1gb before the cost would break even to what he was paying on AT&T. It also runs on the CDMA network using Verizon phones so he has great cell service. If you need anymore info, let me know and I’ll see if it was a regional thing and get more detail.

  • DroidzFX

    Firsters

    • Guest

      You’re an idioters.