Subscribers are on the march towards Verizon communications. Ever since Apple announced that its iPhone would be available for service besides AT&T, subscribers have been anxiously waiting for the iPhone Verizon launch.
On Tuesday the company, jointly owned by Verizon Communications and Vodafone, reported that it added almost a million new contract customers, actually 872,000 during the last quarter of 2010. Overall, Verizon Wireless had a total of 102.2 million wireless customers at the end of the fourth quarter. They grew by 26% over 2009 at year-end 2010 in customer smart phone devices. This was up from 15 percent at year-end 2009. Finally, in the fourth-quarter of 2010, more than 75 percent of new customers on contract service to Verizon Wireless bought smartphones.
Other growth – Fios
In it’s Fios, fiber-to-the-home service The company added 197,000 new customers and 182,000 new Fios TV customers. Overall, the company is approaching 4.1 million Fios Internet customers and 3.5 million Fios customers. The average revenue per user on Fios increased about 10.7 compared to the same quarter in 2009. And Fios revenues now represent about 53 percent of all consumer revenue at Verizon.
Still, with all of this growth, the iPhone will increase the profit since many new subscribers will be moving from AT&T. As long as their vaunted service keeps up, they will not have trouble keeping their growth rate constant.
This, however, is not good news for AT&T. Its monopoly of the iPhone is coming to an end, and in the short run their profits may take a hit. However, now they may be forced to address some of the technical issues that made their subscribers criticize or potentially move away, like dropped calls, delays, and broadband outage. In one sense, the loss of the iPhone monopoly may make AT&T a better company in the long run. If they can fix their problems, new subscribers may feel confident in AT&T. Most consumers aren’t wedded to any service. They could just as easily recover the customer base.