Verizon wireline revenue estimates for the upcoming second quarter have been lowered by Wells Fargo by $343 million, to $7.52 billion, as the telco reported that installation of new FiOS subscribers has plummeted during the wireline labor strike.
Verizon has not yet come to an agreement with the wireline workers represented by the CWA and IBEW, but a top company executive says they are getting closer to a resolution as the strike enters its sixth week.
Verizon's recent announcement to bring FiOS to Boston -- one of the cities that was initially left out of its initial build target-- was driven by a desire to fulfill its wireless LTE and business service desires, its top financial executive said.
U.S. carriers are increasingly moving away from two-year contracts and subsidized handsets in favor of equipment installment plans and leased devices. But in Verizon's case, at least, customers aren't always following.
AT&T announced it is partnering with the data management company Globecomm to launch a service linking satellites to its cell network. The offering enables IoT devices to automatically switch to satellites when cell connectivity is unavailable, eliminating the need for businesses to purchase cell and satellite service separately and allowing them to use both to manage their devices, networks and applications.
Verizon reported an impressive retail postpaid churn rate of.96 percent in the first quarter, surprising analysts who predicted the carrier would lose more customers to T-Mobile and Sprint. But the biggest U.S. mobile network operator continues to bleed prepaid users, opting to cede the market to brands such as MetroPCS and Cricket.
Verizon CFO Fran Shammo reiterated the company's commitment to be the first U.S. company to roll out 5G wireless technology and made it clear that its initial pilot starting in 2017 is all about fixed wireless – not mobility.
Verizon continued to emphasize its ongoing strategies of targeting high-end wireless subscribers and expanding into media and advertising during its first-quarter earnings call Thursday. But it also pointed out recent cost-cutting efforts, underscoring the increasingly competitive landscape of the U.S. mobile market.
Verizon warned that the ongoing strike of 40,000 of its wireline workers could eventually affect the company's financial performance, although the company stopped short of offering specific financial guidance along those lines.
Verizon reported relatively solid results in its wireline business, showing revenue slightly below some analyst expectations but FiOS net customer additions of 98,000, above some predictions.