Lowell McAdam ▪ December 9, 2013
Lowell McAdam ▪ October 18, 2012
Verizon has reported its Q3 2012 earnings this morning with “a third consecutive quarter of double-digit percentage growth.” The nation’s second-largest carrier claims it experienced $29 billion in total operating revenue (3.9-percent gain over last year) and sold 6.8 million smartphones in total for the third quarter. Of the 6.8 million, Verizon reported selling 3.1 million iPhones. Just over one-fifth (or roughly 651,000) of those were the iPhone 5 that saw supply constraints. To compare, during Q2, Verizon sold 2.7 million iPhones.
The carrier also shed more light on its aggressive LTE rollout across the country. Its LTE service is now available to 250 million people in 419 markets across the United States. Furthermore, on the company’s earnings call, CFO Fran Shammo reiterated that its new Share Everything data plan has been “successful and well-received.”
You can find the press release below for specifics: expand full story
Lowell McAdam ▪ January 24, 2012
Despite reports that Verizon’s fourth quarter earnings were hurt mainly by high subsidies for iPhone, Verizon announced on Tuesday it sold 4.3 million iPhones– over 50 percent of the 7.7 million total smartphones sold during the quarter. This statistic follows reports earlier this month that Verizon sold approximately 4.2 million iPhones during the holiday quarter. Compare that figure to the 1.6 million 4G LTE smartphones sold during the same quarter, of which the carrier offers more than 18 (mostly Android) devices versus a few iPhone models. These numbers show consumers are still choosing 3G iOS devices over the latest generation of 4G LTE smartphones from other vendors.
According to Barclays Capital analyst James Ratcliffe, even with the high subsidy, Verizon will see a positive cash flow of approximately $1,600 per iPhone. His estimate is based on the nearly $2,000 spent over a two-year contract and a $400 subsidy for the same period. Ratcliffe explained to Bloomberg:
Lowell McAdam ▪ September 22, 2011
Verizon Wireless CEO Lowell McAdam
At an investor conference yesterday, Verizon CEO Lowell McAdam made the simple argument:
I have taken the position that the AT&T merger with T-Mobile was kind of like gravity. It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.
I don’t think that I’ve heard a rationale for the merger stated more succinctly.
But coming from AT&T and T-Mobile’s biggest rival, you know it is a bunch of horses**t.
Since when does a company CEO say something to the effect of “We want our competitors to be stronger and better equipped to compete with us and take our customers”?
The reason why Verizon is in favor of the deal is because it eliminates a low-cost player in the market and brings the U.S. closer to a telecom duopoly, in which AT&T and Verizon can set prices. Just recently, Verizon was forced to offer a $50 pre-paid data plan that competes with Sprint’s Virgin and T-Mobile. With Verizon/AT&T running the show, they won’t need to make moves like that.
It’s pretty obvious to anyone not on an AT&T or Verizon payroll (including fifteen members of Congress led by North Carolina’s Heath Shuler) that a merger would be horrific for wireless competition in this country.
No one with an eighth-grade education really believes that any merger, telecom or otherwise, has ever created jobs or competition in the marketplace which is what AT&T is somehow trying to argue. Hopefully this thing is killed. Soon.
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