Verizon posts strong earnings ahead of iPhone launch

If carriers were like sports teams, Verizon could be described as having a lot of momentum heading into its iPhone showdown with AT&T.

Although Verizon's 2010 earnings were not as strong as 2009, the carrier did finish the year with a bullish fourth quarter that saw it add 872,000 postpaid wireless subscribers to go with net income of $4.65 billion, nearly double the $2.37 billion reported in Q4 2009. On the year, Verizon posted a net income of $10.2 billion, or roughly 12 per cent less than the $11.6 billion reported in 2009.

In addition to solid earnings, Verizon's fourth-quarter report also highlighted the increase in investments it has been making in wireless. The company invested $8.4 billion in wireless capital expenditures in 2010, compared to $7.3 billion for wireline. In 2009, the company invested more money in wireline ($8.9 billion) than wireless ($7.15 billion).

LTE IN 2011: Curb your enthusiasm

Verizon's strong fourth-quarter earnings come at a time when the company has made two significant moves over the past six months. In December, the carrier commercially launched its 4G LTE network, becoming the first major carrier in the United States to offer LTE services. And earlier this month, Verizon announced that it would soon support a CDMA version of Apple's popular iPhone 4 on its 3G EV-DO Rev. A network.

A recent survey conducted by ChangeWave suggested that Verizon could peel off a significant number of customers from AT&T once its iPhone is fully operational, as 16 per cent of AT&T iPhone users said they wanted to switch to Verizon. Verizon is enticing iPhone users to switch by offering unlimited 3G data connectivity even as AT&T has enacted data caps for its 3G iPhone plans. Verizon's CDMA network does face limitations that don't exist on AT&T's GSM network, however, such as the inability to support simultaneous voice and data use.

On the LTE front, Verizon projects to have the most overall LTE coverage by yearend, as the company launched its network in 38 major markets late last year and is planning on adding several more in April. The carrier plans to have its entire current 3G footprint upgraded to LTE by the end of 2013. Although there are no concrete plans as of yet to launch an LTE-capable iPhone, Verizon did unveil ten different LTE-based devices earlier this year at the Consumer Electronics Show in Las Vegas, including the HTC ThunderBolt and Motorola DROID Bionic 4G smartphones, as well as the Motorola XOOM and LTE-capable Samsung Galaxy Tab tablets.

Read more about anti-malware in Network World's Anti-malware section.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags smartphonesbusiness issueswirelessNetworkinginvestmentsPhonesfinancial resultscorporate issuesconsumer electronicsverizonat&t

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Brad Reed

Network World
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?