On Wednesday, Verizon Communications Inc., the New Jersey-based second-largest wireless carrier in the United States, said on its first-quarterly earnings’ report that the data carrier had lost more than expected paid subscribers as an intensifying battle over market share from T-Mobile US Inc alongside AT&T Inc.
had forced the New Jersey wireless carrier to lose its bearings. Alongside this, as a next-gen 5G technology began to spread across the country, more and more customers were reportedly exploring several options from three telecom carriers, pushing Verizon off the right track.
According to data from Factset, the Bedminster-based data carrier having had 120.9 million paid subscribers as of December 31, 2020, had shrugged off 178,000 paid subscriptions on its first fiscal quarter of the year that ended on March 31, missing an analysts’ estimate of a loss of 121,700 paid subscriptions.
Verizon losses more than expected subscribers, but posts 4% rise in revenues
Aside from that, according to Verizon Communication Inc.’s first-quarter earnings’ report published earlier in the day, the wireless carrier’s total operating revenue surged by 4 per cent to $32.9 billion, slightly above Wall St.
estimates of $32.46 billion, IBES data from Refinitiv had unveiled. On top of that, an additional spending to cover up the costs of a Government auction for C-Band spectrum, widely viewed as a short-term source of available 5G spectrum, had kept a lid on Verizon’s operating revenues, while big three telecom carriers had spent a $78 billion combined in the Government auction.
Besides, in order to fund the purchase of 5G spectrum, Verizon raised nearly $12 billion in the fourth quarter of 2020 alongside another $31 billion in latest quarter, the wireless carrier added at its quarterly earnings’ report.
Nevertheless, following a relatively dour quarterly earnings’ report, shares’ prices of Verizon Communications wrapped up the day 0.39 per cent lower to $58.14 apiece.