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.
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.
So typical for people to assume a fraction of what it actually costs and then whine about what they think is an unfair price.
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.
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.
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.