Data consumption bangs revenues for Verizon

Data packages for telecommunication companies have become the prime source of revenues. With $G LTE technology many users have switched their preference to companies like VZ in order to bang revenues. The companies are constantly trying to come up with better and tailored packages that suit consumer wants. The internet is more of a necessity now than a luxury, thus the trend is likely to grow only with time. And thus with this growth, telecommunication are likely to accelerate to new heights.

VZ’s earning particularly of this quarter rose up to 4.3 percent which is quite steady and promising.  The rise in the earning primarily accounted for the mobile data packages. The company recently reduced the prices of their data plans which showed a great improvement in their revenues as compared to the previous trimestral. Consumers have started to use these plans for more video calls etc. hence the usage has affected positively on their revenues.

Usually what subscribers do is that they make their package as a hotspot and connect various devices to it this also helps the company in streaming revenues. On average it is said that one subscriber actually connects three other devices to it which directly helps them to make 3.9 percent push in general. According to estimates around 1.5 million subscribers have been added to pay for services after they have been consumed. This implies to the postpaid customers only. This actually beats the consensus made by Wall Street which believed that there would be 1 million consumers.

 "Overall it was a good quarter for Verizon in terms of new additions. It is still a very competitive landscape and the fourth quarter could be challenging on a margin front as you look at a promotional period with a new iPhone," claimed Angelo Zino, who is an analyst at S&P Capital IQ headquartered in New York.

This year it has been calculated that people have started to use almost 50 percent more data to what they were consuming earlier and a catalyst in this is the video calls which are now immensely popular. VZ believes that they were quite out of the market previously but now with such moves that ensure a steady future, they are satisfied with how their strategy has worked out for them.

The company is in good shape now provided they continue to offer benefits to their consumers.