Verizon sees 11.3 percent growth in customer numbers
January 29, 2008
Verizon Wireless’ total number of mobile customers increased to 65.7 million
Verizon Wireless continued to be the most profitable domestic wireless company and the largest in terms of retail customers in the fourth quarter of 2007.
The Basking Ridge, NJ-based company reported that the total number of mobile customers increased to 65.7 million, up 11.3 percent year-over-year.
“Verizon Wireless had another solid quarter,” said Robin Nicol, spokesperson for Verizon Wireless. “We added 1.9 million retail customers in the voice and data categories and we also added 1.6 million net post-pay customers and that’s the largest in the industry so far.”
Verizon's churn rate is 1.2 percent, still the industry's lowest rate. Churn is the percentage of customers who cancel service and is held as an indicator of a company’s success in satisfying subscribers.
The company reported that average monthly revenue per subscriber rose 1.4 percent to $51.2 from a year earlier, increased by higher usage of data services such as Internet access, text messaging or downloadable ringtones.
Total revenues in the quarter were $11.4 billion, up 13.3 percent. Service revenues were $9.9 billion, up 13.7 percent, driven by customer growth and demand for data services. Full-year revenues were $43.9 billion, up 15.3 percent.
During the fourth quarter, Verizon customers sent or received almost 45 billion text messages and 927 million picture and video messages. Customers also completed nearly 30 million music and video downloads.
Also, the total data revenues for the full year were up 65 percent compared with 2006. The company had 47.2 million retail data customers in December – 74 percent of the retail customer base and a 37 percent increase versus the prior year.
“We have the most impressive customer loyalty in the industry,” Ms. Nicol claimed. “Our retail post-paid churn was .94 percent.”