Verizon Wireless’ subscriber rolls are growing, but not as fast as AT&T’s
Source: Company reports
In the quarterly report that Verizon (VZ) issued Monday, the number that’s getting the most attention is 1.2 million.
That’s how many new wireless subscribers Verizon added over the past three months. And it’s being compared unfavorably with the 2 million that AT&T Mobility (T) gained in the same period.
Verizon, with a new total of 88.8 million subscribers, still has the largest wireless network — something its ads never tire of reminding us. But AT&T, with 81.6 million, is catching up, and there’s no mystery why. Of AT&T’s 2 million new subscribers, 1.28 million bought Apple (AAPL) iPhones — more customers than Verizon added with all its cellphones, smart or otherwise.
But AT&T’s momentum may be short lived.
AT&T’s churn rate, while much improved (down from 1.69% a year ago to 1.43% today), is still higher than Verizon’s (1.13% for contract customers). Meanwhile, complaints about AT&T’s spotty service, especially in densely populated metropolitan areas, have not abated.
What the iPhone did for AT&T
Meanwhile Verizon has started to strike back, both with TV ads that directly attack AT&T and the iPhone, and with promises of new services and devices.
Verizon is scheduled to begin deploying a faster, so-called 4G network this fall; AT&T’s 4G rollout won’t begin until next year.
And the iPhone may soon have tough competition from a pair of devices Verizon is about to launch that run Google’s (GOOG) Android system. One of them, Motorola’s (MOT) Droid, is getting strong early reviews.
Verizon reported Monday that its revenue grew 10.2% in the third quarter to $27.27 billion while profits fell 9% to $2.89 billion — results that were better than expected.
AT&T reported last week that its quarterly earnings had dropped 1.2% to $3.2 billion on revenue that dipped 1.6% to $30.86 billion. Revenue from AT&T’s wireless division, however, increased 8.2% and wireless profits grew 41%.
See also:
- Verizon and Google go after Apple
- Verizon vs. AT&T: There’s a map for that
- The Droid: Serious iPhone competition
[Follow Philip Elmer-DeWitt on Twitter @philiped]
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