Summary
Verizon Communications Inc. (VZ) filed an 8-K on February 20, 2008, providing an update on their recently introduced "Verizon Wireless Nationwide Unlimited Anytime Minute Plans." The company shared that approximately 305,000 single-line customers, representing 0.5% of their total customer base, were on monthly voice plans exceeding $99.99. These high-value customers currently generate an average monthly voice revenue of $125 to $135. Verizon's management expressed confidence that the revenue reduction from these customers transitioning to unlimited plans will be outweighed by increased revenue from other customers upgrading to the unlimited offering over time. This filing indicates a strategic move by Verizon to simplify its pricing structure and potentially attract a broader customer segment while aiming for overall revenue growth through increased adoption of its unlimited plans.
Key Highlights
- 1Verizon provided an update on its new "Nationwide Unlimited Anytime Minute Plans" for Verizon Wireless.
- 2Approximately 305,000 single-line customers (0.5% of customer base) were on plans exceeding $99.99/month.
- 3The average monthly voice revenue for these high-value customers was between $125 and $135.
- 4Verizon expects revenue from high-value customers moving to unlimited plans to be offset by revenue increases from other customers upgrading.
- 5The company is confident in the long-term revenue benefits of its unlimited plan strategy.
- 6An exhibit detailing the voice pricing of the new unlimited plans was attached to the filing.