For a company that at the time of its inception was the largest telephone company in the U.S., Verizon Communications has withstood the various trials and struggles it has faced over the years very well. The organization has forced itself to remain flexible and receptive to ever-shifting market demands and customers who are not always predictable. With Verizon Communications’ first-quarter report being released on Thursday, and including such intriguing details as having added about 56,000 home phone customers, the company is looking to actively funnel their market potential and oust their competition.
Verizon Communications was founded in 1983, but was not fully formed or launched until 2000. At the time, companies GTE and Bell Atlantic were the foundational components of what would later become Verizon. The company gets its name from combining the words horizon and veritas, which is Latin for “truth”. Now, with over 176,000 employees across the nation and $23.5 billion in net income last year, Verizon Communications has proved a stiff competitor for its key rivals in AT&T, T-Mobile and Sprint.
Verizon has been leading the pack for a while, but the dynamics among business in the telecommunications industry may grow a bit more shadowy. Masayoshi Son, chairman of Sprint’s new parent company, commented recently by expressing interest in combining forces with T-Mobile to match movements against AT&T and Verizon. This may be tougher than anticipated for T-Mobile and Sprint, however. Verizon Communications, also known as “Big Red”, won the right to throttle bandwidth for users that act against the recent net-neutrality doctrine, adding another notch to their belt which could make them a stronger challenge if their competition looks to oust them.
Even with such a powerful title to carry in the wake of new legislation, Verizon will have to wield the capability tenderly in order to avoid losing customers through potential dissatisfaction of their services. The telecom company has been fighting hard to stay as much ahead of the curve as possible, having worked for the last decade on transforming its landline system from copper cables to fiber cables. This has given Big Red a huge leg up in allowing customers to retain a phone for use in their home without it being a traditional landline phone. And even though Verizon Communications lost cell phone customers during the first quarter, their addition of over 600,000 tablet users brought them to a net additive total of about 539,000 customers.
The company’s new structure for home phones is called Home Phone Connect, and Verizon reported that during the latter half of 2013, they added up to 150,000 customers with this new product. They are also gearing towards the acquisition of the U.S.’ ninth-largest wireless company, which remained unnamed in a report from earlier in April.
Verizon Communications would be transferring over 300,000 new customers from that company to their existing base, further enabling them to customize the exact products and services that would make all of their customers more satisfied. In today’s world where business and technology are consistently and infinitely intersecting, having a broader customer base is the wisest move to make. The greater diversity of customers a company can be in contact with, the more it translates to likelihood of success, because it empowers a business to have a newly targeted perception of what its customers want.
With a company making so many advisable and lucrative moves so early in the year, it is likely that Verizon’s competitors will have a more difficult time keeping pace with themselves than with Big Red. With four out of four earnings beats throughout the past year, Verizon Communications is looking to have little to sweat over in regards to ousting their competition.
Opinion By Brad Johnson