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Broadband Business Booming
Verizon posts $1.7 billion profit
(old news - 05:30PM Wednesday Apr 27 2005)
tags: business
Some impressive financial reports coming from the bells this week, as well as a significant increase in DSL subscribership across the board. Verizon posted a $1.7 billion profit, and reportedly tacked on 385,000 new DSL subscribers last quarter (SBC added 504,000, and BellSouth added 235,000). Analysts predict that cable earnings should be equally positive.

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Forums » Broadband Business Booming
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jarablue
Always be true to yourself

join:2001-06-11
Worcester, MA

Good going

Nice to see Verizon doing well. If only other companies would follow. Who woulda thunk if you offer more services you do well in the market.
soothsayer15

join:2002-03-01
Irving, TX

Re: Good going

Once again Broadband reports gives half the story. Most of Verizon Profits come from the wireless division. All the story is gonna do is make people post their "See, they're making enough money, they need to cut DSL prices in half" posts. I don't know why this site is so anti-big business. It's about as fair as Fox News.

Raptor
Not a Dumptruck

join:2001-10-21
London, ON
·Rogers Hi-Speed
·Bell Sympatico

Re: Good going

Well whatever Verizon has their hands into, if they profit in one sector they can improve another. They dont have to just lower wireless prices or just improve that service. I dont know, but id imagine a majority of their base is through residential DSL, wouldnt it make sense to take those profits and do what you can to make the majority of your customers happier?
Skippy25

join:2000-09-13
Hazelwood, MO

BBR never said anything about this being a broadband profit. They simply stated the facts that they made a significant chunk of change in profit.

And Yes I would say they are making enough money and they should put more back into the economy and improve their customer's services and prices.

I know business' are there to make money, I have one myself, but if you have that much of a profit then you are charging too much or you arent reinvesting enough into improved services.

Directed at all the other Bells -> All this "it's too expensive" to deploy FTTH and they are profiting this much? They should be ashamed of themselves. Investing the 10-20 billion which gets to be written off over 30 years would have little impact on their overall profit over the years.

Sean
The Great Divide

join:2004-01-23
Richmond Hil
·Bell Sympatico

Well, I know I'm anti-big business because it should be proportionally difficult to earn money, and should be based on intellect.

Big business and CEOs are hardly deserving of their salaries.

I now leave this entire news topic in fear of being anally electrocuted.

rtcpenguin
Premium
join:2001-01-21
Fairfax, VA
·Cox HSI

I don't know if I care for your tone. This is a broadband related site, so in all fairness it doesn't make that much sense to go into detail about their wireless segment.

On a separate subject, I really hope they pump some of that profit back into FiOS....I can't wait to get fiber!!
--
Pope Benedict XVI scrobbles, do you?

Long ways to video

@verizon.n

Verizon has got to go a long ways to get video people want with unbundling of cable packages... channel selection, all you can view content on demand for $10 (not .99c a pop with limited drm), interactive digital video content, etc etc etc
If its the same ole' content cable companies are shoving down people's throat, consumers will gag on sight!

Albo

join:2002-09-06
Brooklyn, NY
Sounds to me that they make be cooking, go tot make the stock go up a little,, just my $0.002
hescominsoon

join:2003-02-18
Brunswick, MD
this was mainly wireless. I wish they would drop the dsl unfees(the fusf fees which are not federal fees at all).
--
God Blesshttp://www.emmanuelcomputerconsulting.com-- carpe ductum -- "Grab the tape"
jdir

join:2001-05-04
Santa Clara, CA

Now if DSL is available everywhere

I switch to DSL the moment I moved - no longer paying $56 a month for cable for browsing the net.

juicelee
Premium
join:2000-12-04
Hacienda Heights, CA
clubs:

1.7 billion?????!!!

That's quite a healthy profit margin, which is probably the same case with the other ILECs. How about the bells increase speed or lower costs?
ddurant

join:2001-08-24
Marlborough, MA

Re: 1.7 billion?????!!!

said by juicelee See Profile:

How about the bells increase speed or lower costs?
What?!?! Mercedes' don't grow on trees, you know..

FTCXtreme

join:2005-03-14
New Braintree, MA

I take back my wish for SBC

Even though Verizon did add that many, how many of them couldn't get DSL before? How many more lines did verizon make available? Maybe im just rambling because I can't get it? Questions that will never be answered.

xdeadhead
220, 221, Whatever It Takes.
Premium
join:2000-11-08
Mechanicsburg, PA

they better be pumping that profit

back into something like FIOS and not Ivans pocket. we need better outside plant here pleeeeeeeaaaase.

TakeAdump

@comcast.net

Hold the Load Please!

I bet the 385,000 new DSL subscribers came from cable.

needforspeed59
Cruise Ship Just Passing Through

join:2001-05-02
Glendale, AZ

Re: Hold the Load Please!

said by TakeAdump:

I bet the 385,000 new DSL subscribers came from cable.
I bet they came from dial up, but who can prove it either way? Maybe it's 50/50?
--
Of all the people I know... you're one of them.

brooklynman4

join:2004-09-07
Brooklyn, NY

Re: Hold the Load Please!

The profits came from the nyc taxes we pay in revenues lol

ColdFiltered

join:2005-01-25
Atlanta, GA
Did anyone read their quarterly report? I am not sure if that $1.7B figure is for broadband alone or if it includes other divisions, too. And is that gross of net profits?

J D McDorce
Premium
join:2001-12-29
Westland, MI

Re: Hold the Load Please!

It's corporate net income (not just "broadband"). »investor.vzmultimedia.com/financ···2005.pdf
The Way Out

join:2003-01-20

Where did those 385k come from?

Did those 385k come from customers previously without broadband, or were those people they moved over from cable companies?

J D McDorce
Premium
join:2001-12-29
Westland, MI

Re: Where did those 385k come from?

While there will likely always be some movement between RBOCs and the CableCo's (in both directions), I suspect that these are primarily folks new to broadband. The CableCo's are also showing net gains.
Ahrenl

join:2004-10-26
North Andover, MA
·Verizon FIOS

$3.5b Depr/Amort Charge

That must be nice. That's basically $3.5 billion tax free dollars they can roll right back into their infrastructure, which was probably mostly financed by local and federal governments anyway. Nice. 18 billion 3 month revenue. They'll be able to build out Fios with just out of pocket cash.

mikestorm

join:2004-04-30
Norristown, PA


1 edit

Re: $3.5b Depr/Amort Charge

It would be nice if someone could break that number up by 1) number of new subscribers in areas that offered Verizon DSL one year ago and 2) number of new subscribers in new DSL areas.

For all we know, Verizon added 500K new subscribers areas starved for DSL and lost 115K from their existing footprint.

Rob A
Same Old Jets
Premium
join:2005-01-17
Pompton Plains, NJ

Yay for Verizon!

Good job guys! Keep it up!
Forums » Broadband Business Booming


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