Verizon Wireless Leads the Industry in Customer Loyalty

True now.
Will this be true 2 years from now?? :hmm: :headscrat

 

Only thing I see from VZW how are thinking about Cingular is rollover and GSM phone selection. many phones do look better, but according to my roomate he says the software for Verizon LG-6100 is tons better than any AT&T phone he ever had in his 5 years with them. (that is his own opinon)

My roomates tells many people at work with VZW thinking about going to Cingular Blue his experince with them and Verizon.
There are some coverage areas are better with the new Cingular, but still Verizon AC still have the upper hand alot of areas across the country.

I am not saying that Cingular could take Verizon #1 here it could be T-mobile or even Sprint/Nextel.

 

Why wouldn't it be? The same could be said two years ago, they are still doing well. My phones work everywhere I need them to. After 11 years of service with Verizon (AirTouch/Pac Tel Cellular), I can't complain. They are, by no means, perfect but the fact that I also have Cingular and T-Mobile, and can compare my experiences, Verizon beat those two hands down. I recently had a situation where Cingular and T-Mo had no service where Verizon had full service. I have yet to experience a "no service" issue with Verizon.

 

Anyone wants to take a guess as to who is Carrier A, B, C and D?

Here are my guesses without even researching it.

Q4 2004 Churn Rate
Verizon Wireless - 1.43%
Carrier A (Nextel) - 1.5%
Carrier B (Cingular) - 2.6%
Carrier C (Sprint) - 2.7%
Carrier D (T-Mobile) - 3.1%

2004 Churn Rate
Verizon Wireless - 1.5%
Carrier A (Nextel) - 1.6%
Carrier B (Cingular) - 2.7%
Carrier C (Sprint) - 2.6%
Carrier D (T-Mobile) - 3.0%

In my opinion, I would be surprised if Cingular maintains the lead. The reasoning behind this comes clear when you examine the facts and realize Cingular is basically swimming upstream:

- They have two GSM networks to integrate: Cingular & AT&T wireless.
- They have billing systems to integrate. Cingular is still broken up into markets.
- They have to migrate people off AT&T billing systems while maintaining load balancing on both networks.
- Let's not forget about those still using TDMA. They have to migrate those people too.
- They still have to merge many other AT&T Wireless operations such as customer care, data operations, business services, etc. and phase out existing AT&T Wireless inventory, etc.
- Against all these odds, they must race for 3G agains the clock just like any other carrier and still manage to stay within budget.
- Successfully overcome any problems they encounter during this tough transition so that they can maintain 49 million customers happy and lower their churn.

If they come out out of this one successfully they will have my hats off.

Verizon does not have to do any of this to stay competitive, not to mention they are using a technology that is easier to upgrade to 3G at a lesser cost. Plus Verizon already has their reputation established, so they need to do virtually nothing to keep on adding customers. Cingular, on the other hand has to push the market to make sales because they still have to build a reputation. Because of churn, Cingular has to sell much more than Verizon to be able to come close to Verizon's quarterly net additions. The question is can Cingular continue to sell that much for the forseeable future?

 

Bobo is correct. The only ? in verizon's near future is lack of spectrum in certain markets.

 

What a Big LEAD (DEPENDS ON HOW U LOOK AT IT)
in Churn Rate against Nextel
1.5% - 1.435 (Nextel) = 0.07%
Nextel must be really worried.
T-Mobile says it does Not care unless their
customer goes below 15 million.

 

Go to the Grand Canyon, you'll get red-lighted there...

 

My Guesses:
Q4 2004 Churn Rate
Verizon Wireless - 1.43%
Carrier A (Nextel) - 1.5%
Carrier B (T-Mobile) - 2.6%
Carrier C (Sprint) - 2.7%
Carrier D (Cingular) - 3.1%

2004 Churn Rate
Verizon Wireless - 1.5%
Carrier A (Nextel) - 1.6%
Carrier B (T-Mobile) - 2.7%
Carrier C (Sprint) - 2.6%
Carrier D (Cingular) - 3.0%

Based on no real information, just guesses...

 

POCONOS in PA
has lots of NO SERVICE for VZW

 

Do we really need to start listing places that get "no service" for carriers? I thought that was what the coverage maps were for.

I guess I'm gonna have to guess, too. Without going back to look at the data....

2004
VZW
Nextel
Sprint
Cingular
TMO

Q4 2004
VZW
Nextel
Cingular
Sprint
TMO

Who's going to check our answers?

 

Really though, why do they list Carrier A, B, C etc... that is really irriating.

 

Considering I have no plans on going to the Grand Canyon, it makes no difference to me. I know there will be and are spots where Verizon has no coverage. As I said I have not experienced any lack of service from them yet. I have experienced a lack of service from Cingular and T-Mobile within 5 miles of where I live. Verizon in that area is at full strength. So at the moment I trust Verizon more than the other two. To each his own.

 

Exactly! Sorry to give you a hard time about it. I know Verizon has superb coverage in most places.

 

It's bigger than you think. (0.065% * 12) = 0.78% of the customer base on an annual rate. At 16.3M customers, that's over 127,000 difference in churn.

T-Mobile certainly cares. They came out with some big incentives to their retail employess to help reduce churn.

 

Here is the answer:
Q4 2004
VZ 1.43
Nextel 1.5
Cing 2.6
Sprint 2.7
T-Mo 3.1

2004
Vz 1.5
Nextel 1.6
Cing 2.7
Sprint 2.6
T-Mo 3.0

 

VZW may have the Lowest Percentage Churn
But CINGULAR is Signing Up More New Customers
than VZW.
So these are Numbers Game:
New Customers - Lost Customers = Gained Customers
Gained Customers + Existing Customers = Total Customers
in CINGULAR'S Case it's now in the 49 Million

 

Do you have access to these numbers or are you just basing this off Q4 2004 with all its new merger hype?

 

The article about this requires subscription
so i can't post it there.

 

So I was right all along!

 

The U.S Market has room for 3-4 National Carriers
those in the top 3 will be profitable
the 4th will depend on the
number of customers.

In the end it's all about profitability.

 

Per there 4th Qtr #'s maybe true, But as bobilitto so well stated they will be having a big battle with this.
Also until we see numbers that show full quaters once no one can sign up as a Blue customer, then you will see how they are able to keep signing on new customers & if they can lower there churn rate.
And Cingular is actually in the 48 Million customer range, they didn't make 49 Million yet.

 

In general that's true, but VZW's reputation for good coverage is causing so many customers to come in that some regions are getting overloaded before VZW can get more capacity running in their existing spectrum (Atlanta) and others are about to hit a brick wall spectrum-wise (NYC), and this is causing churn in these areas to increase somewhat. VZW's heavy-handedness compared to other carriers (the V710/Bluetooth debacle, inconsistent policies re: tethering, general inflexibility, etc.) isn't making them any friends, either...

I do see Cingular having more and more issues with churn related to the AWS acquisition (I think we've only seen the tip of the iceberg) and with TDMA customers being forced to GSM in regions with poor GSM coverage. (It's hard to imagine not seeing Cingular have significant churn from irritated TDMA customers in areas with relatively little GSM like east Tennessee, central Georgia, Phoenix, etc. -- heck, the few people I know on Cingular in these areas are starting to leave...)

I am curious as to why TMO's churn is higher than SPCS, especially given TMO being more or less the price leader. I assume that coverage has something to do with it, but I've found TMO's coverage to be more reliable than SPCS for the most part. (There are certainly exceptions, such as northern NJ) I've also heard that Vision and (oddly enough) ASL/Clear Pay seems to help keep SPCS customers from leaving, while TMO's Smart Access is actually causing customers to leave, not because of bad debt/nonpays but because of the extremely limited choice of plans SA customers can choose from (many SA customers "grow out" of the plans and are stuck either paying huge overages or leaving; not surprisingly, most do the latter. SPCS, Nextel, and other carriers with ASL programs do not restrict the plans available with those programs like TMO does.)

-SC

 

I haven't heard of too many people being forced from TDMA to GSM yet, Unless the person want's a new phone or plan, then they get stuck having to migrate to a GSM plan. Hopefully Cingular will work on building out these poor coverage area's to prevent alot more churn, But I can see it happening as you say.
As for T-Mobile, I guess people want better plans & can't get them from T-Mobile or better coverage, which could be an issue depending on where people live.
For any & all carriers, they need to have the coverage & capacity before being so aggressive, but we know that's not how they will work but we all know Verizon, Cingular & Sprint are working on building out there networks & hopefully they will do it faster so we all get the coverage we want & need.