Verizon, Thursday reported first-quarter results that shows a net decline of 307,000 postpaid connections which includes 289,000 phone losses.
The largest mobile operator in the US, however delivered a strong wireless profitability and customer loyalty as the company introduced its Verizon Unlimited pricing option, and revenue growth for Fios broadband and Internet of Things (IoT) services.
The launch of Verizon Unlimited positively changed the trajectory of customer additions in the quarter. Prior to the launch in mid-February, Verizon had a retail postpaid phone net loss of 398,000; after the launch, Verizon added 109,000 retail postpaid phone connections.
Some of the key indicators in the wireless segment;
- Verizon’s retail postpaid connections base grew 1.2 percent year over year to 108.5 million, and retail prepaid connections grew 0.5 percent to 5.4 million.
- Retail postpaid churn was 1.15 percent in first-quarter 2017, a year-over-year increase of 19 basis points primarily due to increased churn in tablets.
- Total revenues were $20.9 billion in first-quarter 2017, a decline of 5.1 percent compared with first-quarter 2016, due to decreased overage revenue, lower postpaid customers in the quarter and continued promotional activity.
- At the end of first-quarter 2017, approximately 72 percent of postpaid phone customers were on a non-subsidized service pricing plan.
- The percentage of phone activations on device payment plans remained steady at about 76 percent in first-quarter 2017, compared with about 77 percent in fourth-quarter 2016.
- Approximately 48 percent of postpaid phone customers had a device payment plan at the end of first-quarter 2017.
- In first-quarter 2017, overall traffic on LTE increased about 57 percent compared with first-quarter 2016