For Verizon: Is Wireless 60%, 70%, or 80% of the Total?
Verizon (NYSE:VZ) offers voice, data, video services and solutions on both its wireless and wireline networks. The offerings meet the customer demand for mobility, network connectivity, security, and control. Wireless revenues make up about 77% of total revenues in 2019.
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1. Wireless: It provides wireless voice and data services and equipment sales to consumer, business, and government customers across the U.S.
Verizon has the largest fourth-generation (4G) Long-Term Evolution (LTE) technology and third-generation (3G) Evolution – Data Optimized (EV-DO) networks of any U.S. wireless service provider.
2. Wireline: It provides broadband video and data, corporate networking solutions, data center and cloud services, security and managed network services, and local and long distance voice services across the U.S. and around the world.
What Are The Alternatives?
Wireless Carriers: AT&T, Verizon Wireless, and T-Mobile, and regional carriers such as U.S. Cellular and C-Spire.
Technology Companies: Microsoft, Google, Apple.
Cable Companies: Comcast’s Xfinity Mobile and Charter’s Spectrum Mobile.
What Is The Basis of Competition?
Competition is based on wireless plans that include voice calls, spectrum resources, wireless content distribution, and broadband services.
Verizon’s Total Revenue has grown 4% from $126 billion in 2016 to almost $131 billion in 2018, and is expected to grow 2% to around $133 billion in 2 years
(1) Revenue from Wireless Channel to increase about $2.2 billion in the next two years, with its share of Total Revenue expected to be about 78% by 2020
- Overall, Wireless channel revenue increased from $95.5 billion in 2016 to $101.1 billion in 2018, driven by increased mobile phone revenues.
- We expect revenue to grow by $2.2 billion in the next two years, to about $103.3 billion in 2020, driven by increased postpaid revenues.
- Wireless sales contributed 77% of total revenue in 2018. This share is expected to go up slightly to 78% in 2020.
(1.1) Postpaid Subscribers Could Grow On The Recent 5G Launch
(1.2) Prepaid Revenues Could Continue To Decline Due To Loss of Subscribers
(2) Revenue from Wireline channel to increase about $150 million in the next two years, with its share of Total Revenue expected to be about 22% by 2020
- Segment revenue declined from $30.5 billion in 2016 to $29.7 billion in 2018, driven by decreases in traditional voice and network services. The technology substitution and competition, as well as decreases in demand for traditional linear video within the customer groups, led to this fall in revenues.
- We expect revenue to remain almost flat at $29.9 million in 2020.
- Wireline sales contributed 23% of total revenue in 2018. This share is expected to go down slightly to 22% by 2020.
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