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How Verizon became the next Comcast

Posted Feb 20 2008, 11:38 AM by Douglas McIntyre
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Verizon has been the ruler of the walk, but that has changed. Yesterday, the shares hit a 52-week low at $35.19.

The large run-up in Verizon's stock last year was based on two things. The first was that its new fiber-to-the-home TV and broadband service was picking up customers from cable companies like Comcast. That sent Comcast shares to multi-year lows. Comcast's latest earnings showed that the impact of Verizon's initiative was less than expected. More recently the phone company said that it could not get HD set-top boxes to many of its new fiber customers. Motorola had fallen behind in making them. All of a sudden, the $23 billion that Verizon put into the fiber project did not look quite so good.

Then the market was hit with news of a cellular price war between Verizon Wireless and AT&T. T-Mobile got in on the action just or fun. Cellular revenue is what has driven Verizon's revenue and operating income over the last several years as it has lost landline business to VoIP.

Six months ago, Comcast looked like it was down and out, perhaps for a very long time. Two significant problems at Verizon have forced it to replace the cable company in Wall Street's dog house.

Comments

 

I had just installed AT&T high speed intranet when I found out you could get Verizon intranet. I use Verizon for my cell phone company and would switch to Verizon for my hi-speed intranet out of loyalty. I am happy with the customer service, etc. that I have received for the last several years as a cell phone customer.

I have Verizon FIOS and have had nothing but trouble since....the bundling, the billing, customer service, tech support...billing errors in excess of $800.00 per month.  They even sent my bills to the wrong address and insisted I had services I didn't know existed...give me a cell phone and broadband and I'll be happy.

I don't feel bad for Verizon at all. They left Northen New England in the lerch with Fair Point, which has a BIG debt on its hands to deal with what Verizon did not want to fix. Verizon did not want to fight a not so profitable battle, they are more interested in their wireless business. If they are going to leave the North then take there wireless with them. Why not take the bad market with the good? Can not just have the cream. Seems like some of the good equipment went south and was replaced with not so good from the South. To heck with Verizon! Hope Fair Point can make it work and show Verizon their mistake. My view, Verizon wants it all, stick with what you do well and forget all the fluff!

Cable has big pocket lobbyist thats how they get away with this unlawful practice

people accept because they lost common-sense

Verizon....what a nightmare!   I odered FIOS when it became available in MD.  They promised a package of phone and 30 meg downloads for $69.00 per month.  I ordered it in June.  After numerous attempts to get it installed (Finally in August after they did not show for 4 separate appointment prior without the courtesy of calling) I received my bill.  Every month it was not acurate.  They charged from $129.00, to the record high of $193.00 per month.  Every month I would have to call and complain to get someone to correct it. I finally cancelled the service last January.  Not worth the billing hassle.  FYI....Verizon is being sued in the state of FL for improper billling practices.  Buyer beware!!!

Verizon Wireless has the worst customer service that I have ever experianced so they would be the last wireless company that I would use-ever. They also lie about the roaming charges before you sign up for the service and they have the worst "network" of anyone. T-Mobile is the best wireless company there is!

Staying with a company out of loyalty, even though they are the worst, is not an intelligent thing to do.There are much better companies out there that actually care about the customer.

I just want to know why I can't get Broadband. The politicians and lobbyists really stick it to you. What's with these prices? No wonder their CEO makes millions.  

I want verizon cable!  Cocast is a rip off, I have to call every six months and threaten to have it take in out if my Bill gets above $70. If their cable is anything like their phone service it'd be good.

I'm trying to decide whether to stick with comcast (who i have had no problems with they provide my cable and internet) or should I switch to verizon fios for the better price.  I have a land line phone through verizon, but the price keeps going up up up.

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