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07/28/2009 No iPhone, But VZW 2Q Metrics Remain Steady

If quarterly results are any indication, Verizon Wireless seems to be curiously immune to AT&T’s iPhone. Although Veirzon has fallen behind AT&T in terms of net additions – Verizon scored 1.1 million in the second quarter while AT&T added 1.37 million – its data revenue, churn and service ARPU all rate better than AT&T.

Verizon’s second-quarter service ARPU came in at $51.10, compared to AT&T’s $50.70. As for churn, Verizon’s postpaid rate was just 1.01 percent, compared to AT&T’s 1.09 percent.

iPhone aside, Verizon managed to remain competitive with its network and handset portfolio. Surprisingly, and undoubtedly due in part to the high cost of the BlackBerry data plans, Verizon's data ARPU came in at $14.96, which beat the $14.57 reported by AT&T.

Analyst Julien Blin of JBB Research noted several factors that led to Verizon’s ARPU. Blin said that BlackBerry users spend an average of $100 per month, and 40 percent of new devices sold on Verizon’s network were PDAs or smartphones. Strong growth in netbooks and MiFi sales were also part of the equation.

Blin said he likes where Verizon stands and envisions an iPhone in the carrier's future. 

"Adopting the iPhone in 2010 could become an instant home run for Verizon ... I think that customers from Sprint, T-Mobile and even AT&T might move to Verizon once Verizon gets the iPhone. Now, other carriers might also carry the iPhone ... That said, I think that Verizon offers the best package overall," Blin said.

 
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