What determines who is the largest carrier?

[larry]

The combined Sprint/Nextel company will have apprx. 39 million customers. Verizon has something like 42 million? And Cingular 47 million? Should we always go by who has the most customers is the largest carrier? How about ARPU? There's an old saying 'quality over quantity'. Sprintel will have the highest ARPU by far once the merger is complete. They stand to have an ARPU of somewhere between $65 and $70. Not sure what Cingular's ARPU is but I know Verizon's is much lower than that. Just something for everyone to think about.

[AnthroMatt]

Largest, to me, always means number of subscribers.

Largest does not have to mean best or most profitable though.

[larry]

I think Sprint will be bringing in more revenue than Verizon when this is all said and done. They're customers will be better quality (higher paying) than Verizon's and Cingular's and that should count for something. But I know it won't.

[bobolito]

Larry, you are just looking for a way to say Sprint will be #1....admit it!

Unfortunately, it is not up to us to determine how carriers are ranked. The industry has always determined rankings based on number of subscribers. I don't think that will ever change.

[larry]

Who me??

[LowTech]

Personally I think largest should mean the company that makes the highest net profit

[agentHibby]

If you choose sales then Nextel/Sprint will probably be #1
If you choose customers then it is AT&T/Cingular #1
If you choose square mile coverage then it is Verizon #1

sorry T-Mobile I can't think of anything that will make you number one in the US

[danny boi]

Yeah. Unfortunately, industry rankers do not judge a carrier's size by any of our emotional attatchments to any particular company otherwise all of them would be the largest if it were up to us.

2005 will be a new year. So many things can change. Large companies who were successful in the past may see unforseen issues and companies who were previously unsuccessful may find their new nitch in the market.

We will most likely see new pricing plans put out to lure more users.

I think if VZW would add, say: 1000 Anytime National Minutes for $ 59.99 they could really increase their ARPU making it more appealing to get higher end pricing plans. That and there new minute free data plans will also boost their ARPU should they release them as rumored.

The fact that they keep setting industry record subscriber adds quarter after quarter tells me they are in no hurry to act. Who knows?

I don't care if my company is # 2 or # 3. As long as my service works that is the most important to me.

[agentHibby]

Originally Posted by YourDaddy I don't care if my company is # 2 or # 3. As long as my service works that is the most important to me.

Something that I and MyDaddy can agree on

[danny boi]

Originally Posted by agentHibby Something that I and MyDaddy can agree on

Who? Your daddy or my daddy? LOL

[twopiece]

Originally Posted by agentHibby If you choose sales then Nextel/Sprint will probably be #1 If you choose customers then it is AT&T/Cingular #1 If you choose square mile coverage then it is Verizon #1 sorry T-Mobile I can't think of anything that will make you number one in the US

Which carrier has the most celebrity endorsements- TMO #1

Having Catherine Zeta Jones has to count for something.

[WirelessBeachBum]

Originally Posted by larry Sprintel will have the highest ARPU by far once the merger is complete. They stand to have an ARPU of somewhere between $65 and $70. Not sure what Cingular's ARPU is but I know Verizon's is much lower than that.

Hey Larry you know there is a reason spell checker tries to correct the word ARPU to the word "RAPE".

Wireless investors like high ARPU wireless customers do not like paying more.

[Matt]

Generally, companies are ranked by either subscribers (primarily) or revenue. AT&T used to say it was the 2nd largest based on revenue when Cingular was 2nd largest based on customers.

[WirelessBeachBum]

I wonder does Sprint include regulatory charges (charges they pass on to the customer) in ARPU. I know Sprint used to have one of the Highest cost recovery charges of any carrier (Sprint landline is really bad)....Alltel's up there as well.

If that's included those charges alone just from the size of the customer bases reaching 30-40-50 million customers could make some differences when comparing revenues.

(as a side note if someone sent a text message to all 40 million Verizon subscribers at 2 cents per message Verizon could make and extra $800k...someone check my math on that one.)

[bobolito]

ARPU says nothing about the size of a company. If we were to use ARPU alone, then any regional carrier could very easily be classified as the largest, and we all agree that a regional carrier can never be considered as larger than a national company. For instance, Alltel's ARPU is higher than Verizon's. So, does that mean that Alltel is a larger carrier than Verizon?

[larry]

Yeah but when we compare 3 large national carriers of near equal size I think ARPU should play some factor into it.

[bobolito]

Originally Posted by larry Yeah but when we compare 3 large national carriers of near equal size I think ARPU should play some factor into it.

LOL! Especially if Sprint is involved

[larry]

You got it!

[larry]

Originally Posted by Matt Generally, companies are ranked by either subscribers (primarily) or revenue. AT&T used to say it was the 2nd largest based on revenue when Cingular was 2nd largest based on customers.

So does that mean Sprint-Nextel will get to have bragging rights and say they're the biggest carrier revenue wise?

[WirelessBeachBum]

Originally Posted by larry You got it!

Okay as a Sprint customer I wouldn't be too happy saying that my favorite carrier cost people more money than other carriers.

That's like saying my grocery store charges their customers more money for milk than your grocery store and you saying, yes but my grocery store has valet parking.

Hee...hee...Larry I bet your cheeks are sore from smiling too much today...

[MOTOhooligan]

Originally Posted by agentHibby If you choose sales then Nextel/Sprint will probably be #1 If you choose customers then it is AT&T/Cingular #1 If you choose square mile coverage then it is Verizon #1 sorry T-Mobile I can't think of anything that will make you number one in the US

How about #1 in the J.D. Power & Associates Customer Service Survey? (Take that Veringularintel!)

[AnthroMatt]

Originally Posted by WirelessBeachBum Okay as a Sprint customer I wouldn't be too happy saying that my favorite carrier cost people more money than other carriers.

Whoa there! To say that Sprint "costs" people more money is not fair at all. I'm a little surprised to see you make such a claim. It would be more accurate to say Sprint customers spend more money than, say, Verizon customers.

[Matt]

Originally Posted by larry So does that mean Sprint-Nextel will get to have bragging rights and say they're the biggest carrier revenue wise?

I dunno is it true? More than the new Cingular?

[larry]

Originally Posted by AnthroMatt Whoa there! To say that Sprint "costs" people more money is not fair at all. I'm a little surprised to see you make such a claim. It would be more accurate to say Sprint customers spend more money than, say, Verizon customers.

Thanks you saved me the trouble of replying.

[larry]

Originally Posted by Matt I dunno is it true? More than the new Cingular?

Well not sure on that. I know it will be more than Verizon but Cingular? Maybe not?

[larry]

Originally Posted by WirelessBeachBum Okay as a Sprint customer I wouldn't be too happy saying that my favorite carrier cost people more money than other carriers. That's like saying my grocery store charges their customers more money for milk than your grocery store and you saying, yes but my grocery store has valet parking. Hee...hee...Larry I bet your cheeks are sore from smiling too much today...

Come to think of it....my cheeks are getting a little sore.

[WirelessBeachBum]

Originally Posted by AnthroMatt Whoa there! To say that Sprint "costs" people more money is not fair at all. I'm a little surprised to see you make such a claim. It would be more accurate to say Sprint customers spend more money than, say, Verizon customers.

Okay I'm sure you will prefer the term "monthly statement" instead of "monthly bill" it's the same thing, how much you pay for your wireless service, one just sounds better and less negative.

Sprint is a more innovative in their plans than Verizon, as far as options for PCS Vision, Free & Clear, off network roaming, nights and weekends at five and seven, etc....but the average wireless consumer doesn't know what they need, and most don't know what they use.

Verizon is slow to make changes to plans, I miss the days of working at smaller carriers when I could create a plan, as long as the billing system would support it. Of course in their defense "if it ain't broke don't fix it."

I'm sure 2005 is going to be an exciting year for all the players....And I fully expect to see at least one more big merger in 2005.

[danny boi]

The problem with basing a carrier's financial success soley by ARPU is that ARPU does not take into consideration the costs incurred while acquiring a new customer.

Nextel has the highest cost per acquisition of any carrier; an average of $ 455 per customer is spent by them while Verizon Wireless spends between $ 270-300.

If they actually added that extra $ 150 spent per customer on their financial reports, ARPU would be decreased significantly. Some carriers also post regulatory fees and taxes in their quarterly revenue earnings.

[larry]

I think that Nextel number will come way down though as the merger takes affect. Nextel has consistently been the most profitable carrier.

[WirelessBeachBum]

That cost will not come down if they come out with a dual mode cdma/iden handset, because equipment subsidies are figured into cost to aquire...I can't imagine a huge global need for these phones. (if they will actually be made, I'm sure there is probably already some for souls staying up late tonight to throw these things together.)