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Verizon Wireless tacks down churn, boosts ARPU

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Verizon Wireless today posted a record low churn rate and saw its average revenue per user increase as it shifts its focus to retail customers and higher-revenue data services.

Verizon Wireless recorded a second quarter churn rate of 1.13%, down from 1.18% last quarter and from 1.22% in the first quarter. The operator added 1.8 million customers between April 1 and June 30, as it reported last week, but all of those customers were retail customers serviced directly by Verizon Wireless and bringing in more revenue than a wholesale subscriber. Verizon Wireless's actual number of wholesale subscribers decreased by 100,000 in the last quarter, which while boosting Verizon's own ARPU, doesn't bode well for the carrier's mobile virtual network operators and resale partners.

Verizon Wireless' data revenues also continued to increase, reaching 12.9% of overall service revenues last quarter. Verizon Wireless has a data ARPU of $6.40 a month, almost doubling the $3.47 ARPU from last year's second quarter. The operator also said it now has 10 million customers with EV-DO capable phones, though all are not necessarily VCast or business data subscribers.

The operator brought in $9.3 billion in total revenues, an 18% increase year-over-year, generating for its owners Verizon Wireless and Vodafone operating earnings of $3.6 billion, up 20.5%.

 
 

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