Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Mobile Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
How Long Will Verizon Be a Phone Company?
How Long Will Verizon Be a Phone Company?

By Jennifer LeClaire
October 17, 2013 11:57AM

    Bookmark and Share
“Verizon is not installing wireline services to hurricane hit areas. That is very interesting and a testament to the future. The future is wireless. Going forward, at some point, we will have to stop calling Verizon a phone company since it continues to move away from telephone toward wireless, FiOS, television and Internet,” said wireless analyst Jeff Kagan.
 



Telecom giant Verizon Communications is reporting year-over-year double-digit percentage growth on both operating income and earnings per share for the third consecutive quarter. But with most of that growth coming from outside the traditional phone service, will the company soon have to stop marketing itself as a traditional telecom provider?

Verizon’s third quarter 2013 results clearly reveal high customer demand for wireless phone subscriptions, as well as FiOS and strategic enterprise services. In fact, the FiOS services are what’s driving continued strength in the company’s wireline revenue.

“Our unwavering focus on wireless, FiOS and strategic enterprise services has produced consistent performance, and we’ve delivered double-digit earnings growth in six of the past seven quarters,” said Lowell McAdam, Verizon chairman and CEO. “Verizon’s strategic networks form a powerful distribution platform for future growth and innovation.”

Anything But Wireline-Driven

Again, the company’s future looks anything but wireline-driven. In September, it inked a deal to acquire Vodafone's 45 percent stake in Verizon Wireless for $130 billion. The transaction is expected to close in the first quarter of 2014.

When the ink dries, Verizon will own 100 percent of the largest wireless carrier in the United States. The company said the wireless division will be better equipped to leverage changing competitive dynamics in the market and capitalize on the evolution of consumer demand for wireless, video and broadband services. That should drive up wireless revenues even more.

As it stands, total revenues on the wireless side were $20.4 billion in the third quarter. That’s up 7.2 percent year-over-year. Service revenues in the quarter totaled $17.5 billion, up 8.4 percent year over year. Retail service revenues grew 8 percent year over year, to $16.8 billion. Verizon Wireless added 1.1 million net retail connections, including 927,000 retail postpaid net connections, in the third quarter.

By contrast, consumer revenues on the wireline side were only $3.7 billion. That’s a 4.3 percent increase year-over-year. Consumer revenues have grown more than 4 percent year over year for five consecutive quarters. But noteworthy is the fact that most of those revenues came from FiOS. FiOS revenues grew 13.4 percent, to $2.8 billion in the third-quarter 2013, compared with $2.5 billion in the third-quarter 2012.

A Testament to the Future

We asked Jeff Kagan, a wireless industry analyst, for his take on the metamorphosis of Verizon. He told us the company’s wireline business is shrinking, which is par for the industry.

“Verizon is not installing wireline services to hurricane hit areas. That is very interesting and a testament to the future. The future is wireless,” Kagan said. “Going forward, at some point, we will have to stop calling Verizon a phone company since it continues to move away from telephone toward wireless, FiOS, television and Internet.”

What will Verizon do to maintain its levels of growth as the industry continues to slow? Kagan said there are other business areas the company can enter. However, it has not spent much time discussing other opportunities -- not yet anyway.

“I believe Verizon will have to start discussing other business opportunities to continue their growth in order to keep their investors at bay,” he said. “Tomorrow looks different than yesterday. It will be interesting to watch how Verizon handles tomorrow.”
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Report: Amazon Phone To Feature 3D
2.   Review: Galaxy S5 Features Useful
3.   Galaxy S5 Won't Sway iPhone Lovers
4.   Charge a Phone in 30 Seconds? Done
5.   Samsung Adding Anti-Theft Solutions


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Android Wear on Tap for Wearables
OK Google, what's really new here?
Average Rating:
Will Nadella Launch an Office for iPad?
New Microsoft CEO may act this month.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Apple’s iPhone?
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.