Q1 Wireless Scorecard: What Verizon iPhone Effect?
onMay 12, 2011
The iPhone’s (s aapl) debut on Verizon Wireless (s vz) in January was one of the most anticipated moments for many consumers and wireless lovers. But it turns out the launch wasn’t bad news for most rival carriers, nor did it impact Verizon’s network. In the first quarter, almost all the wireless carriers reported strong results with robust subscriber additions, good revenue numbers and improving churn. The lone exception was T-Mobile, which struggled with a loss of subscribers and saw flat revenue and a loss in income.
Now, it’s unlikely that one smartphone would have much of an effect across the entire market. So these results are not surprising. But it’s a good sign for the industry that it’s still adding subscribers, though in some cases, the growth is happening through connected devices like tablets and other machines. AT&T (s t), for example, added 1.3 million connected devices in the last quarter, far outpacing its more modest post-paid subscriber additions. Verizon also added 897,000 subscriberss from wholesale and “other connections.” As we’ve pointed out, these areas are where the battle will increasingly be fought as the market for mobile subscribers gets saturated. Take a look at the numbers, which were drawn from the earnings reports announced by the companies.