Verizon 4G brings new customers, rivals to feel the heat

Verizon Communications today said it won significant wireless customers in Q4 2014 due to its 4G network, indicating possible struggles to its rivals.

Rivals such as AT&T, T-Mobile and Sprint are yet to share their indicative performance reports.

The company announced performance indicators ahead of the fourth quarter 2014 results on 22 January. Verizon does not share specific numbers till announcing the financial result next month.

“The company reported very strong customer demand for 4G smartphones and tablets on its More Everything shared data plans on the nation’s most reliable wireless network in the fourth quarter to date,” said Verizon.

Verizon 4G Ericsson

Verizon achieved retail postpaid gross additions both sequentially and year over year. New device launches including Apple iPhone 6 and iPhone 6 Plus are driving significant customer phone upgrades. New devices will be 9.5 percent of the postpaid customer base by the end of the quarter. New devices will be a drag on Verizon profits.

The company observed that three out of four upgrades to high-end phones from a basic phone or a 3G smartphone. 24 percent customers are choosing Verizon Edge equipment-installment plan option so far in Q4 2014 against nearly 12 percent of total phone activations.

Total retail postpaid disconnects are higher both sequentially and year over year as the company is accelerating the upgrades of high-quality customers to 4G.

Verizon Capex (capital spending) for 2014 is estimated to be around $17 billion.

Image: for illustrative purpose

Baburajan K
[email protected]