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TMCnet Feature

January 22, 2014

Bundles and Shared Plans Drive Verizon Results

Verizon Wireless “Share Everything” plans are driving device adoption and stimulating higher usage resulting in increases in both the number of devices and revenue per account, reflecting both the importance of “multi-line accounts” and the growing perceived end user value of mobile Internet access.

During the fourth quarter of 2013, Verizon Wireless retail postpaid revenue per account (ARPA) grew 7.1 percent to more than $157 per month. For the full year, ARPA was up nearly $10 or 6.9 percent.

Verizon reported average connections per account of 2.76 device, an annual increase of 4.5 percent, Verizon Wireless says. Over the last 18 months, Verizon says it has acquired or converted more than 46 percent of its postpaid accounts to the shared data plans, representing 16.2 million accounts. The “Personalization for a Mobile and Social World” conference at the ITEXPO – taking place January 28-31 in Miami, Florida – will be led by TMC’s Paula Brenier, and it will touch on how mobile providers can better engage their customer market.

Altogether, Verizon Wireless had 96.8 million and six million prepaid accounts.

Smartphone penetration increased to 70 percent of total phones. About 58 percent of Verizon Wireless smartphones in service use 4G.

Verizon Wireless also activated about 790,000 postpaid tablets in the fourth quarter and 1.9 million for 2013. Verizon’s connected tablet base now stands at 3.6 million.

In the fixed network segment, 46 percent of FiOS Internet customers subscribed to service plans at speeds from 50 to 500 megabits per second.

In the fourth quarter, 55 percent of FiOS Internet sales were at speeds in excess of 50 megabits per second.

Overall fixed network consumer monthly ARPU increased to $117, up 10.8 percent. If that does not get your attention, compared that to ARPU metrics in France, where average revenue per user has been dropping since 2004.

Roughly two thirds of FiOS customers buy a triple-play package, which have a much higher amount of recurring revenue per month.

On the other hand, consumer fixed network access lines continue to fall down  by 5.2 percent in the fourth quarter of 2013,  compared with a loss of 6.2 percent in the fourth quarter of 2012.  

Edited by Cassandra Tucker

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