Comparing the Services by Major Telecom Giants

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Major Telecom Giants

The US telecom world is controlled by two of the long-standing names: AT&T® and Verizon®. Both have substantial customer base all throughout the country. They have sufficient funds and stable revenues to assure they return parts of it to the keen investors. Verizon’s contingent yields 4.5% while the AT&T® dividend earns 7%. Investors are almost always confused about where to invest, considering the success that both the companies are. Below is a brief insight into their major processes and details that will help bring clarity to this question.

The Core Business

It is true that both AT&T® and Verizon® branched out from their phone services a while ago. However, they make substantial revenue from their mobile phone customers that use wireless phones.

Note that Verizon’s customer base in mobile postpaid subscribers was boosted by 1.1 million in 2018. This has paved the way for a steady increase in its revenue from this sector across the last three quarters of 2018. Overall, its revenue from wireless business saw a rise of 4.8% by the end of the year.

AT&T®, on the other hand, increased its customer base by just 200,000 subscribers. However, the good news is that their service revenue has shown steady growth in the last three quarters of the previous year. Its total mobility business earnings increased by 2.1% for the year 2018.

When you compare both the cable providers on profit margins, Verizon® clearly emerges on top. Most importantly, Verizon® raised its profit share in each of the three quarters of 2018, while AT&T® saw its profit shrink in three of the 4 quarters.

Beyond Wireless

Cable Providers
High Speed Internet

Verizon® and AT&T® have made moves to go beyond the horizons of wireless business Verizon® runs a relatively small wireline business and serves a few million customers. However, this base is shrinking slowly, as most of the customers are choosing pay TV through best cable deals, thereby abandoning the home phone service in the process. Its FiOS internet subscribers, on the other hand, continue to grow in number. To sum up, its wireline revenue reduced by 3% in 2018.

AT&T® bought DIRECTV® for $49 billion a couple of years ago, but it did not turn out as profitable as they may have wanted. There has been a constant drop in the number of customers at the end of every quarter. A total of 750,000 video subscribers were also lost in the last year alone. To put it in a nutshell, the operating profits dropped by 28.6% for the entertainment group.

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