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. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
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:



Download this complementary white paper, Transitioning to a New Era of Human Information, and learn how you can easily manage, understand and leverage all forms of Big Data in real time to discover new opportunities and increase revenue.


 Mobile Tech
1.   Is Apple Dumping iPhones on eBay?
2.   Data Recovered from 'Wiped' Phones
3.   Another Day, Another IoT Consortium
4.   Review: Advances in Smartwatches
5.   Qualcomm Moves Advance WiGig


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Review: Huawei's Mate2 Impressive
Many features for a reasonable price.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 
Russian Arrested in Hacking Case Filed in Seattle
The U.S. Secret Service has arrested a Russian man who is accused of hacking store computers to steal thousands of credit card numbers, charging him with bank fraud, identity theft and more.
 
More Than Half of Networks Not Ready for Internet of Things
Most enterprises are prepared for the IoT and see its business potential. But the reality is that there may not be enough network capacity to handle the increased demand in connected devices.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

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.