Verizon Posts Good Q2, Crippling Phones Notwithstanding

[Janak Parekh]

<div class='os_post_top_link'><a href='http://www.mobiletracker.net/archives/2006/08/01/verizon-wireless-q206' target='_blank'>http://www.mobiletracker.net/archiv...n-wireless-q206</a><br /><br /></div><i>"Verizon announced its full second quarter statement this morning, including the performance of Verizon Wireless...The biggest news for Verizon Wireless' second quarter is that data revenues shot past the key $1 billion mark. Overall data made up almost 13% of revenue."</i><br /><br />It's also worth pointing out that Verizon's churn is incredibly low: about 1.2%, which goes down to a tiny .87% if you ignore prepaid customers. <i>This</i>, more than any other reason, explains why Verizon feels no pressure from consumers like us: be it for coverage, perceived value, ease-of-use, or for other reasons, most consumers stick with Verizon. I'd bet that the churn rate amongst technology enthusiasts are higher, but we're a small minority, and even so people like me stick with Verizon thanks to the coverage and data performance. In short, I don't see Verizon feeling any need to change their policies anytime soon. :?

[sixftunda]

I fall into the "Stuck with Verizon" category. GSM users are nonexistant out here in rural Ohio and prolly will be for years. Luckily since I am a bit more tech savvy than a normal user I only need to go to a Verizon store maybe once per year. Went two months ago beacuse my car charger died and I was a mile away. It was an hour of my life just to buy a stupid car charger I will never get back. :cry:

[Phoenix]

I know that T-Mo has been expanding large into the 850MHz band and from what I read, increased their network by 40%. Part of that was also adding coverage in rural areas. I don't know if that affects you in Ohio, but if is hasn't yet, I wouldn't think it would be long based on how they've been progressing.

[daS]

Another potential reason for low churn from "high tech" consumers, is that we do our homework and may not select Verizon in the first place.

I fall into that category. I really wanted to give my business to Verizon since they have the best coverage in the area where I now live. However, when I tried to come up with some way to get voice and data for both my phone and laptop, it couldn't be done for the $110/month that my company was allowing. The main reason was that I needed a PC Card in addition to the phone (and two different numbers of course) in order to get data for my PC since they don't allow the phone's Bluetooth to be used for data comm. :evil:

Since I never became a Verizon customer, I would not appear in their churn rates even though I walked out of their store and they lost a potential high rate customer.

(They also lost the opportunity to get some free PR since I would most likely have written a "how to" article for Pocket PC Magazine. :wink: )

[Janak Parekh]

Another potential reason for low churn from "high tech" consumers, is that we do our homework and may not select Verizon in the first place.
My intuition suggests (perhaps, wrongly) that, again, that this is the minority of customers. Verizon's growth rates also point to the fact that enough people are choosing Verizon. If most people did as you suggest, I think their growth would flatten...

--janak