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Optical/IP

Verizon Sells 1.4M LTE Devices in Q3

Verizon Wireless activated 1.4 million Long Term Evolution (LTE) devices over the summer, helping to push the company's wireless revenues up to $17.7 billion, rising 9 percent from the same quarter in 2010.

Overall, Verizon Communications Inc. (NYSE: VZ)'s profit rose to $1.38 billion, or 49 cents per share, from $659 million, or 23 cents per share, a year earlier, the operator said on Friday. Revenue rose 5.4 percent to $27.9 billion from $26.5 billion and was slightly ahead of analyst estimates of $27.88 billion, according to Thomson Reuters .

Verizon Wireless added 1.3 million net subscribers, including 882,000 monthly contracts, 86,000 pay-as-you-go users and 367,000 added through resellers.

Clearly the 4G network that the operator has had in operation since last December is attracting subscribers in droves. "Our 4G LTE deployment is going very well and we are now providing service in 165 markets covering more than 186 million people," said CFO Fran Shammo. Verizon Wireless CMO Marni Walden said earlier this week that Verizon will have LTE in 178 markets by year's end. "That's over the half the population," she said at a Motorola Inc. (NYSE: MOT) event, claiming that rivals will take three years or more catch up. (See Photos: Moto Gets Skinny With 4G RAZR.)

More than half of Verizon's 5.6 million smartphones sold in the third quarter were Android devices. Another 2 million were iPhones, Shammo said.

In comparison, AT&T Inc. (NYSE: T) activated 2.7 million iPhones in the same quarter. Overall, Ma Bell shifted a total of 4.8 million smartphones in the third quarter. (See AT&T Predicts 'Blockbuster' Wireless Q4.)

— Dan Jones, Site Editor, Light Reading Mobile

kaps 12/5/2012 | 4:50:47 PM
re: Verizon Sells 1.4M LTE Devices in Q3

According to the call, Verizon sold less than a million 4G LTE smartphones -- they said the mix of 1.4 million devices was half data devices (USBs, hotspots) and half phones. And if we can translate Clearwire's recent early reporting of 1.9 million new 4G wholesale customers for Q3 as almost all coming from Sprint, it appears that Sprint is still pulling away from Verizon in 4G device activations. So far this year my unoffical math has Sprint with 5.2 million 4G activations, Verizon with 3.1 million activations. Despite Verizon's size, cash and market-coverage advantages, Sprint has sold a half-million more 4G devices each of the past two quarters. Impressive.


Question: Does it matter? Sprint's announcement today about ending unlimited data plans for 4G broadband devices seems to remove a key differentiator on why someone might choose a Sprint 4G device over a competitor's. It may be necessary from a cost perspective, but it looks a bit like a shot in the foot. Going forward Verizon looks much better positioned for the long haul, even if its 4G device portfolio now seems crowded with a lot of expensive, lookalike items. By eliminating unlimited plans, Sprint takes away a lot of what made it a no-brainer 4G choice. Hard to figure.


And maybe Verizon's biggest goal for 2011 was achieved when they said on the call that 90 percent of their Internet devices -- the big-data chewing USBs and Wi-Fi hotspots -- are now 4G devices, meaning they have been successful at getting those users off the 3G network and onto the uncrowded LTE network. That is probably more important for Verizon, short-term, than beating Sprint right now.

kaps 12/5/2012 | 4:50:47 PM
re: Verizon Sells 1.4M LTE Devices in Q3

According to the call, Verizon sold less than a million 4G LTE smartphones -- they said the mix of 1.4 million devices was half data devices (USBs, hotspots) and half phones. And if we can translate Clearwire's recent early reporting of 1.9 million new 4G wholesale customers for Q3 as almost all coming from Sprint, it appears that Sprint is still pulling away from Verizon in 4G device activations. So far this year my unoffical math has Sprint with 5.2 million 4G activations, Verizon with 3.1 million activations. Despite Verizon's size, cash and market-coverage advantages, Sprint has sold a half-million more 4G devices each of the past two quarters. Impressive.


Question: Does it matter? Sprint's announcement today about ending unlimited data plans for 4G broadband devices seems to remove a key differentiator on why someone might choose a Sprint 4G device over a competitor's. It may be necessary from a cost perspective, but it looks a bit like a shot in the foot. Going forward Verizon looks much better positioned for the long haul, even if its 4G device portfolio now seems crowded with a lot of expensive, lookalike items. By eliminating unlimited plans, Sprint takes away a lot of what made it a no-brainer 4G choice. Hard to figure.


And maybe Verizon's biggest goal for 2011 was achieved when they said on the call that 90 percent of their Internet devices -- the big-data chewing USBs and Wi-Fi hotspots -- are now 4G devices, meaning they have been successful at getting those users off the 3G network and onto the uncrowded LTE network. That is probably more important for Verizon, short-term, than beating Sprint right now.

sgan201 12/5/2012 | 4:50:45 PM
re: Verizon Sells 1.4M LTE Devices in Q3

Hi,


http://www.fiercewireless.com/story/sprint-drops-unlimited-wimax-data-mobile-broadband-plans/2011-10-21


As far as I can tell, for Sprint, the unlimited 4G unlimited data plan still applies to smartphone.   What was affected was non-smartphone devices.


Dreamer

opticalwatcher 12/5/2012 | 4:50:44 PM
re: Verizon Sells 1.4M LTE Devices in Q3

Sprint still has unlimited, uncapped data for its phones.


A lot of people have this wrong, which indicates that Sprint has done a really bad job of informing the public about their 5G capping of the wireless computer connections.


I wonder how many customers they are losing because of this confusion!


 


Here's a link showing unlimited data for the phones:


http://shop2.sprint.com/en/sho...

kaps 12/5/2012 | 4:50:43 PM
re: Verizon Sells 1.4M LTE Devices in Q3

Funny, I haven't seen one reputable news outlet that has it "wrong." We all know how to report: Sprint phones still have unlimited data plans. It's the USB sticks, the Wi-Fi hotspots (including the ones built into 4G phones), the tablets -- aka broadband devices -- that are now being capped. I don't see the mass confusion you claim.


The numbers for those devices probably aren't insignificant; but Sprint doesn't help us figure out exactly how the breakdown goes because Sprint does not break out its 4G numbers by device or phone, and neither does Clearwire. For Verizon the number is half -- meaning that half of Verizon's 4G subscribers are using the service from a data-only device. It would help to know how many of Sprint's 4G customers will now lose their "unlimited" plan because they only have a hotspot or a USB modem. But Sprint hasn't told us that number.


So -- where's the confusion? Can you point to those "lots of places" where people have it wrong? I don't think so. I think Sprint had an edge with power users that it is now giving up, for reasons clear only to Sprint. If they are losing customers it's because those customers can no longer get an unlimited contract for a data device like a USB modem or a Wi-Fi hotspot, devices Sprint launched with great fanfare and a heavy emphasis on the unlimited use. And not because of any "confusion" over what was announced.

kaps 12/5/2012 | 4:50:43 PM
re: Verizon Sells 1.4M LTE Devices in Q3

Funny, I haven't seen one reputable news outlet that has it "wrong." We all know how to report: Sprint phones still have unlimited data plans. It's the USB sticks, the Wi-Fi hotspots (including the ones built into 4G phones), the tablets -- aka broadband devices -- that are now being capped. I don't see the mass confusion you claim.


The numbers for those devices probably aren't insignificant; but Sprint doesn't help us figure out exactly how the breakdown goes because Sprint does not break out its 4G numbers by device or phone, and neither does Clearwire. For Verizon the number is half -- meaning that half of Verizon's 4G subscribers are using the service from a data-only device. It would help to know how many of Sprint's 4G customers will now lose their "unlimited" plan because they only have a hotspot or a USB modem. But Sprint hasn't told us that number.


So -- where's the confusion? Can you point to those "lots of places" where people have it wrong? I don't think so. I think Sprint had an edge with power users that it is now giving up, for reasons clear only to Sprint. If they are losing customers it's because those customers can no longer get an unlimited contract for a data device like a USB modem or a Wi-Fi hotspot, devices Sprint launched with great fanfare and a heavy emphasis on the unlimited use. And not because of any "confusion" over what was announced.

opticalwatcher 12/5/2012 | 4:50:42 PM
re: Verizon Sells 1.4M LTE Devices in Q3




Funny, I haven't seen one reputable news outlet that has it "wrong."
Can you point to those "lots of places" where people have it wrong?






I meant lots of people, not lots of 'reputable news outlets'. Go to any Sprint user forum and you see this mistake made repeatedly.



It doesn't help that some of the 'reputable news outlets' have headlines that state: "Sprint Ends Unlimitted Data", and the article mentions data devices, but don't bother to mention that smartphones still have unlimited data.



Also,
Digital Trends had it wrong:
http://www.digitaltrends.com/m...



The technical news discussion site Ars Technica had it wrong and had to post a correction:
http://arstechnica.com/apple/n...










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