Verizon Struggling Competitors and Mixed Profits. by Milota Sidorova

In the times of crisis one can’t surely expect above average business results. Yes, this time we forget of banking sector and target on communication. Verizon Communications Inc, New York based telecommunication company that is also the second largest phone company in the U.S. has been reporting its ups and down. Although its third quarter profit increased and reached $1.18 billion or 41 cents per share, it’s far less than $1.67 billion or 59 cents per share a year ago. It grew but not the way experts forecasted. Let’s take attracting the customers. The things didn’t go as well as they were supposed to. Despite company’s heavily promoted fibe! r optical television service, it got over 191,000 customers on national level. Although it was 18 percent rise from the last year, Wall Street was expecting more than 253,000 customers. Sanford Bernstein analyst Craig Moffett commented the growth a “clear disappointment”. There’s also significant connection with the company’s fate. Verizon has been struggling with hundreds of smaller cable TV’s that offer internet and TV connection. From wider point of view it is a potential competition, because Verizon is in the time when it needs to set the priorities and change its marketing subsequently. Since there is not such big call for landline phones, they are targeting more on cell phones and fiber-optic FiOS TV and Internet services. The market, however offers huge variety of services and provider, so Verizon has to take advantage from its status of important big size player. The company is also managing inner restructuring. After it took over w! ireless provider Alltel Corp, it has to deal with excess of em! ployees. According the plan, the company is about to cause more than 8,000 lay offs before the end of the year.

related story (sgx15733): http://tech.yahoo.com/news/ap/20091026/ap_on_hi_te/us_earns_...

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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