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Thread: Data Shows VZW's Costs for Transmitting Data are Going Down as Customers Pay More

  1. Droid Ninja
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    #11
    Quote Originally Posted by benb1974 View Post
    If Google started some 2.5 g service I would switch.
    If google where to build like 300 towers in major cities where they sold 5G(not VOLTE, but 5G like they are making in korea, 1gb per second), they would be 2 steps ahead of verizon.
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    #12
    Quote Originally Posted by NeoPhoenixTE View Post
    ...and this is why I won't be renewing my contract in two years and just sit on month to month grandfathered in to my unlimited plan. :P
    Until they eventually kill of unlimited. It's going to happen lol
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    #13
    I guess I see it as it is a "choice" to have a phone with data. It is not a "need". We keep blaming them for overcharging or taking it to us, which I do agree as well that they are, but we choose to keep paying these inflated prices. There are other choices, that are cheaper but may have less of a service area or reliablity, but indeed there are other options.

    I don't agree with the charges, believe me I don't like my $200+ dollar bill a month, but it is a choice to pay that amount. There are other ways to get email and other devices that support our needs such as GPS and stuff. Again, it is a choice. Sad but true.
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    #14
    Just because the cost of transmission (i.e. marginal or variable cost) is decreasing says nothing about the fully loaded cost (including investment) to provide service.
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  5. Master Droid
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    #15
    Quote Originally Posted by kodiak799 View Post
    Just because the cost of transmission (i.e. marginal or variable cost) is decreasing says nothing about the fully loaded cost (including investment) to provide service.
    I refuse to believe that it takes more than two years to recoup investment cost. Does anyone know the cost of for the building our 4G network? Verizon has a surplus of money in their bank; unless they are starting the building of the 5G network (which I doubt considering they are just finishing up the 4G). Then next year should be the end of cost. Will Verizon stop charging exorbitant prices? No, after all no one is against a company making money there's an issue of just hoarding money and giving nothing back. I am not talking about giving money back but giving better services such as lowering cost or more options for services?
    Last edited by comk4ver; 01-24-2013 at 03:06 PM.
  6. Droid Sensei
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    #16
    Quote Originally Posted by comk4ver View Post
    I refuse to believe that it takes more than two years to recoup investment cost. Does anyone know the cost of for the building our 4G network?
    It takes a lot longer than two years to recoup that investment. Their LTE buildout is costing TENS OF BILLIONS - they have over $50B in DEBT on their balance sheet. They're in the process of completing a deal for $4B, and that's just additional spectrum from cable companies.

    So typical for people to assume a fraction of what it actually costs and then whine about what they think is an unfair price.
    Last edited by kodiak799; 01-24-2013 at 05:51 PM.
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  7. Master Droid
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    #17
    Quote Originally Posted by kodiak799 View Post
    It takes a lot longer than two years to recoup that investment. Their LTE buildout is costing TENS OF BILLIONS - they have over $50B in DEBT on their balance sheet. They're in the process of completing a deal for $4B, and that's just additional spectrum from cable companies.

    So typical for people to assume a fraction of what it actually costs and then whine about what they think is an unfair price.
    where are you getting these numbers?
  8. Master Droid
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    #18
    He got it from the fourth quarter financial paperwork. I would like to point out that also money actually spent this year was a mere $16.2 billion. To run Verizon it cost 30 billion. Verizon made 115.8 billion off all their customers that includes fios, mobile and landlines. So if Verizon really wanted they could pay off their debt and still keep 19.6 billion but refuse to do so. Instead they want to pass along their debt to us and keep their profits while claiming that it's too expensive for to give you a better data service.

    Data Shows VZW's Costs for Transmitting Data are Going Down as Customers Pay More-forumrunner_20130124_194535.png
    Last edited by comk4ver; 01-24-2013 at 09:03 PM.
  9. Droid Sensei
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    #19
    They have other overhead - wages, health insurance, pensions, store rentals, maintenance costs. Oh, and their investors require a return (dividend yield is 4.8%)

    Normally I look at free cash flow. The past 3 years, they averaged about $31B a year. But that's before capital investment, and it's a capital intensive industry. Their capital investments (including maintenance) have averaged $18B a year. Another $5.5B in dividends. So it would take them @7 years to pay off their debt. Current assets basically cover current liabilities - so they aren't exactly swimming in it.

    Not a balance sheet that remotely reflects gouging customers. You want to see truly strong balance sheets go look at Apple, Google or even Microsoft.
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    #20

    Re: Data Shows VZW's Costs for Transmitting Data are Going Down as Customers Pay More

    Keep in mind, they closed a bunch of call centers, they're streamlining their cs costs all the time.

    Also, their cutting back on what they want to pay for tower use, meanwhile increasing demands put on tower providers... the only exceptions being.. if they can bypass the tower effectively... then they're obviously just walking away and sticking antenna arrays in church steeples or clock towers...

    Vzw has cut their overhead a lot this last year.
    FoxKat likes this.
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