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After Rough Q1, Verizon Won’t Overreact to Industry Swing, Says CFO

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Verizon had a rough Q1, at least according to analysts and interpretations over their earnings numbers. After looking at their net new subscribers, it appears as if they lost phone subscribers for the first time in their history – yikes. CFO Fran “ShamWow” Shammo isn’t worried, though (of course he isn’t), saying today at the Jefferies Technology, Media and Telecom Conference that his company will not overreact to the changes in the industry that T-Mobile and AT&T have quickly adopted. Verizon will “react rationally” to market changes and also hope that their new MORE Everything and Edge programs continue to pick up steam. 

In other words, Verizon is not ready to follow T-Mobile, which has decided to give up on making money with service contracts and is instead playing their hand in the hardware installment plan business. AT&T seems to have adjusted to this model as well, which at least in the short term, seems to have been a smart move. While Verizon really only saw growth in tablet add-ons in Q1, AT&T and T-Mobile both added plenty of new phone customers. As you may recall from last week, T-Mobile rolled in 1.3 million postpaid subscribers and almost 2.4 million total net adds.

Shammo did note that Verizon ended the quarter much better than they entered it, saying that he feels much better about the outlook of Q2.

In the end, your take-away should be that Verizon is going to continue doing what it has always done. Contracts will play a big role in their business, as will the focus on the reliability of their network.

Via:  CNET
  • Aaron C

    “Verizon will “react rationally” to market changes” -> We will continue to bleed our customers until we don’t have any left and we’re forced to change. Long Live Legere!

  • gunslinger

    in order to keep profits up amid losing customers, verizon will raise prices on existing customrs to entice them to stay while lining the CEO wallet.

    It’s a briliant plan, with no downsides what-so-ever

  • Patrick Crumpler

    Spoke with my wallet and got out if that dysfunctional relationship over a year ago. Peace out VZW. Maybe if you weren’t jacking your customers you wouldn’t be in this situation.

  • Joel Gautraud

    They are about to lose 2 more… I guess I’m thinking the same way as lots of other people.

  • Mark Knight

    just as Alan
    explained I am startled that a mom able to get paid $6861 in a few weeks on
    the internet . official website W­ o­ r­ k­ s­ 7­ 7­ .­ C­ O­ M­

  • jrgray27

    Oh, Verizon…reading that article and seeing the arrogance of them makes me think of a quote my parents use to tell me “A hard head leads to a soft behind.” Don’t expect at the end of every quarter for you to miraculously recover. I being an unfortunate Verizon (with unlimited so hated even more by them) wish T-Mobile nothing but the best. I hope they gain the investors to expand there network and teach those other 2 “hard heads” a lesson. : D

  • Beakler

    Take an additional $20 Republic Wireless credit at checkout with purchase of your phone (excludes Design Yours) using this discount link: http://rwshar.es/OFc8

    UNLIMITED Minutes, Texts, and Cellular Data plan for $25 per month. UNLIMITED Minutes, Texts, and Wifi Data $10 per month

  • http://www.toysdiva.com Toys Samurai

    Didn’t they just announce that people can save $10 from their monthly plan fee if they bring their own devices? When did you last hear about Verizon giving you a price break on one hand when they don’t try to steal money from their other hand? Like, never? And, that’s not a reaction to T-mobile’s threat?

    • ThomasMoneyhon

      not what ive seen. att is $15 if you bring your phone or use one out of contract, while Verizon is $40 for the same thing (on a 10gb/$100 plan)
      not only that but the selection of phones you can bring to Verizon is terribly small because you CAN NOT bring a Verizon prepaid phone (unlike att or T-Mobile, unless that phone has been paid up for 6 months on a prepaid plan), you CANT bring a gsm phone.
      even if you are correct its $10 off per phone 40-10 = 30, att is half that per phone.

  • http://www.twitter.com/SexciiP JaQuez Avondre

    I would also love to Verizon to T-Mo but T-Mo doesn’t offer their service in my area which sucks. I’m stuck Verizon. But at least I still have unlimited data.

  • Slvfox

    I have 5 lines all with unlimited data. I also get a 22% employer discount plus get $20 promo off every line. My unlimited costs me $9.95. I called Verizon today and asked about upgrading without losing my data and she said no way. She did tell me that the 4 lines that are month to month are entitled to a $10 discount per line. She said it does not effect anything else on my plan. So now my data plan is free. Gota love verizon (sometimes).

  • Jason B

    Companies that are slow to change are quick to fall.

  • Bill Mattheis

    Was a Verizon customer and just today my new Nexus 5 on T-Mobile arrived in the mail. Bye bye Verizon.

  • Marsg

    Its what they deserve, they never listen to there customers, there new plans made no sense other than making them more money. Seriously why would anyone pay full price for a phone and still end up paying the subsidized fee. Of course they changed the plan like 8 months later after everyone realized what they were doing, but up until that time they made a pretty penny or two. There phone support sucks, updates on Verizon roll out like 3-4 months later then all the other carriers. They completely fudged up galaxy nexus support, and now they get no Nexus devices. The galaxy s3 now almost 2 years old is starting to get the KitKat update on other carriers while Verizon’s brand new Galaxy note 3 is still on jelly bean.

  • billy

    BURN BABY BURN.

  • MrCrusha

    Funny… since he says one thing and the company does another. I recall an article out there saying that Verizon wasn’t going to do anything in lieu of T-Mobile and AT&T offering better plans. Now if you go to Verizon and look at their offerings they indeed changed their offerings to something more palpable for consumers wallets.