Verizon retakes US wireless subscriber lead from AT&T
by Brian White 
posted Apr 11th 2007 at 3:05PM
The one-upping in the US carrier industry of "who has the most subscribers" sometimes seems to be a driver behind mergers and the like. Well, we're half joking, but it certainly seems that way sometimes. When Cingular combined with the old AT&T Wireless years back to leap ahead of Verizon Wireless as the largest U.S. mobile carrier, we're sure Verizon was a little steamed. It took some time, but Verizon Wireless has clawed its way back to the top of the pile, as IDC now says that Verizon's 56.8 million U.S. subscribers has caused AT&T to fall into second place in the country with 56.3 million subs insofar as direct retail customers. Add the fact that Verizon Wireless also has the top spot for wireless data usage and percent of subscriber revenue used on data, and pow -- AT&T just got dealt a blow. AT&T won't be down for the count though with its retail customers, we think. It just might buy T-Mobile USA if Deutsche Telekom wants to sell it -- or not. Perhaps Alltel? Why, we love GSM and CDMA carrier combinations! In the meantime, we suppose they can still tout their status as the nation's largest GSM carrier, but it just doesn't have the same ring to it, now does it?[update: added additional description]
Filed under: ATT, Verizon Wireless
Reader Comments (Page 1 of 1)
ShortFuse @ Apr 11th 2007 3:21PM
This isn't true. You're not reading the information right.
Cingular ended 2006 with 61 million and Verizon with 59.1 million. This is just talking about direct retail subscribers. Cingular has a big chunk of the government and major businesses.
Verizon had 56.8 million retail subscribers and Cingular had 56.3 retail subscribers at the end of 2006. This isn't saying that NOW Verizon has more customers, because it doesn't, but at the end of 2006, Verizon had more "general public" subscribers than Cingular. We still have to wait until Q1 2007 Reports to see who's in the lead at the moment.
Josh @ Apr 11th 2007 3:55PM
Despite this being an online blog, this story is blatantly poor journalism. Anybody who reads this article is going to be misinformed just with what little (mis)information was given.
Either take the time to present the full story or don't bother attempting it. Sounds reasonable enough.
I would suggest that anybody interested in the true facts of this story find a reliable source to get the information from.
I would say nice try, but it simply wasn't even that.
G_Lander @ Apr 11th 2007 4:17PM
umm, what? this story looks fine using the source for further reading. what is the big deal
Dylan @ Apr 11th 2007 4:23PM
I must say that "Shortfuse" put it best. Engadget is a great source of information, but should seriously look into things before blasting it onto their front page. Truly disappointed in you Engadget
Thought @ Apr 11th 2007 4:40PM
First, don't get mad at engadget...they are simply citing a story from Information Week.
Second, as for the govt, Verizon has the most govt users.
Third, I believe the major difference between the total customer numbers and these direct retail subs is that the total customer number takes into acct prepaids, which are not really where you make your money.
So no matter how you cut it, this is a favorable report for Verizon, and should be a wake up call to ATT. It's amazing how ATT/Cingular has squandered what was once a large lead, after their merger a few years back.
Dylan @ Apr 11th 2007 4:51PM
First,
site your sources. Where do you come up with the fact that Verizon has more subscribers. Second, prepaid generates MASSIVE income due to the large per minute rate for any call made. Do the math.
kashif @ Apr 11th 2007 4:53PM
If this is the same article talked about in Howard Forums, its basically postpaid subscribers, not counting the prepaid. With prepaid added in, its the 61 million for AT&T and 59 million for Verizon.
G_Lander @ Apr 11th 2007 4:57PM
ehh...and Cingular fanboys come out of the woodwork. verizon will stomp at&t like the bottom-feeding carrier they are. period. and, we will hear crying from those that moan about anything bad for at&t.
Mario @ Apr 11th 2007 5:53PM
I beleive the issue is wholesale customers versus retail customers.
I would count VZ's and Cingular's retail customers as those folks with whom VZ or Cingular has a direct relationship. A wholesale customer is someone that gets service from some other marketer of wireless services, but that happens to be actually using VZ's or Cingular's network (neither VZ or Cingular have a direct relationship with a wholesale customer). From a marketing perspective, I beleive the retail customer count is what matters, and it seems that VZ has surpassed Cingular.
Keep up the great reporting work, Engadget.
aonicc @ Apr 11th 2007 5:05PM
this was the last place i expected to see fanboyism. what happened to everyone hating their carrier? hell, i have t-mobile and i hate them. i hate them (slightly) LESS than cingular/vzw, but i still hate them.
Dylan @ Apr 11th 2007 5:10PM
World wide technology, fastest data speeds, fewest dropped calls? Sure sounds like a bottom feeder to me. Can you hear me now?
ShortFuse @ Apr 11th 2007 5:16PM
Yeah, don't be hard on him. I researched it before when consumerist.com made the same mistake.
This is all based on Q4-2006 information. We've seen that info before, but now mean that categorical, Verizon has the most subscribers in one catagory (the largest one) but not overall.
And they have the largest ARPU (average revenue per user) in terms of data but overall Sprint/Nextel has largest. (Another categorical win for Verizon but not overall)
But if you look closer at the Q4 2006 information, you'll see Verizon is, in fact, not catching up to Cingular in terms for total subscribers. Cingular added 2.4 million net subscribers. Verizon added 2.3 million net subscribers.
Verizon's Q4 profit fell while Cingular's tripled.
Quoting ibmtimes.com:
"That said, the vast majority of Verizon's new customers were monthly subscribers, whereas a third of AT&T's fourth-quarter gain consisted of "pay-as-you-go" users who tend to generate less revenue and switch providers more frequently. Overall, Verizon Wireless now has 56.8 million monthly subscribers, equaling 96 percent of its base. Verizon's "churn" rate of subscribers switching to rivals also came in lower than many forecasts, averaging 1.14 percent of the customer base per month."
To be honest, Verizon is doing a good job catching up. 2.3 million is impressive, but Cingular even 1up'd them with 100,000 more. If it wasn't for the iPhone, I'd think Verizon would have passed Cingular by the end of 2007.
Either way, competition is good. Verizon's working on Rev A and TV on your Cellphone (faster than Cingular is). Cingular is launching on broadening their HSDPA, launching Video Sharing and launching HSUPA (which will be followed by Video Calling) as well as that new voicemail thing which seems neato.
is @ Apr 11th 2007 7:03PM
WHO CARES. I AM SICK OF NUMBERS AND BS MARKETING HYPE. The fewest dropped calls of any carrier - pure BS. Most Realabile more BS! Competition is great! Hopefully Cingular will wake up and really roll out their real G4 network before 2009. I use both because I travel and I want the lastest phones which are always GSMs, and do like the faster networks which is CDMA. Since my company pays for both, I don't care. I want to see more competition not less.
Josh @ Apr 11th 2007 7:16PM
How can one not "be hard on" Brian White?
This isn't a matter of which carrier is better, it's a matter of fact versus fallacy. If Engadget was any kind of respectable source for information, some of these writers would be out of a job faster than you could look up some of the facts they misreport (which are ironically not that hard to find.)
"Simply citing a story" won't quite cut it when your entire purpose is to report accurate information. Are we all to assume that it would be totally fine for any other "journalist" just to "cite a story" without first checking the facts?
All in all, this entire situation is a disgrace. Some reliable resources might help.
Frankenstein Black @ Apr 11th 2007 11:36PM
Verizon will get close but never catch AT&T! Why? One word: iPHONE! Beep, beep, zip, bang (says the non phone gimping, 95% global reaching, GSM/HSDPA networking, SIM to multi phone shifting roadrunner). CDMA tech and ESN's in this day and age? Verizon, LOL!!!
Thought @ Apr 12th 2007 8:40AM
There's nothing wrong with this story...it is about facts. The fact is that Verizon has now surpassed ATT in postpaid subscribers...that is a huge development.
The other facts are that Verizon gets more data revenue from its subscribers, and has a lower churn rate than ATT.
These are objective facts; one may not like it, but they are the facts. Right now VZW is surpassing ATT in execution in the marketplace, largely because they are regarded as the more reliable network, in spite of ATT's bogus claims regarding dropped calls. VZW has just announced that it is investing an additional 6 billion dollars in their network infrastructure this year alone. That may explain why they have been eating away at ATT's lead for the last several years. If Cingular/ATT had had their act together, the gap would not have been narrowed.
Andy Nguyen @ Apr 12th 2007 2:43AM
Forget the statistics, numbers, claims, and everything - if you have either Verizon or Cingular/AT&T you should be happy. Fortunately I'm a part of that group.
Josh @ Apr 12th 2007 3:46PM
Thought, the article has been changed. If you had read it at it's inception, you would realize how differently the story was presented.
And as far as capital expenditures on network infrastructure goes...nobody invests more into their network than AT&T (and that has been the case since 2003).
VZWguy @ Apr 12th 2007 11:15PM
World wide technology, fastest data speeds, fewest dropped calls? Sure sounds like a bottom feeder to me. Can you hear me now?
by Dylan
I seriously started laughing out loud.
world wide tech...verizon has that, and with the new merlin data card, they got it all.
fastest data speed...that is whre I lost it, cingular..fast...data...BWAHAHAAHAHAH
fewest dropped calls.... yeah because if you don't have service it isn't a dropped call. everyone has outed that BS claim by cingular a million times.
but hey, at least you were entertaining dylan.
LAmber @ Apr 13th 2007 7:54AM
From 3/27/07 Houston Chronicle article
- Interview with head of AT&T's wireless division Stan Sigman
Q: AT&T CEO Ed Whitacre recently called Verizon the "cream of the crop" in the wireless business. What are you doing to help AT&T catch up? How will moving Cingular into AT&T's tent help?
A: Mr. Whitacre is right. Verizon's results are very commendable. I admire them for it. They don't have, in my opinion, the assets we have, the technology we have. There's no reason why we can't deliver better performance for our customers, for our shareholders and our employees. We've integrated the networks, integrated the operating system. It's all about building out and operating the best wireless network, having the most compelling products and services, having the best shopping experience in the stores. The new Experience stores show that we're delivering on that.
_________
From WirelessWeek.com
http://www.wirelessweek.com/article.aspx?id=138538
Doxey @ May 10th 2007 8:56PM
That last comment, where the AT&T CEO talked about Experience stores. Who had those first? And called them "Experience stores?" That would be Verizon. AT&T announced their experience stores at least 2 months after Verizon OPENED at least one Verizon Experience store that I am aware of in Fairfax, VA
DanielS. @ Jun 29th 2007 11:19AM
Who cares who has more, all these people are getting for no reason, go get a life and stop arguing over sh** that doesnt matter