Wondering why everyone today is asking, ‘Is Verizon going out of business?’ well, Verizon has long been a household name in the world of telecommunications. For many years, the company has led the charge in connecting people far and wide with its revolutionary technology.
But recently, news broke out that Verizon is shorting down one of its services – in fact, its most notable service. This, coupled with the declining revenue the company has been experiencing for a while, people are beginning to feel concerned about the future of the company, hence asking questions.
But what is really going on with Verizon? Is Verizon going out of business, really? Just keep reading to find answers to many questions you might have in your mind concerning the company.
Is Verizon Going Out of Business?
The straightforward answer is no. Verizon is not going out of business. The telecom company remains a formidable presence in the industry, even with its share of obstacles.
It’s no secret that the company recently lost some of its customers and is also presently grappling with the issue of pricey phone bills. But even in the face of all of this, Verizon is still making good money from the business, and there is no sign that it’s waving the white flag soon.
Presently, the company is ambitiously expanding its 5G network, an endeavor that could be its lifeline to retain and draw in more clientele. Looking at all of these, it doesn’t look like Verizon will be closing its doors soon and going out of business. So, is Verizon going out of business? The answer is no!
So, Where Is the Rumor Coming From?
If Verizon is not going out of business as many people have believed, then the next question would be where the rumor came from. Why are people asking, ‘Is Verizon going out of business?’
A major source of this speculation has been Verizon’s decision to close down its 3G network by the end of 2022. This move saw the termination of approximately 1.1 million retail connections, which naturally impacted their revenue in 2023’s first quarter.
While this was a significant decision with noticeable repercussions, it was geared towards paving the way for more advanced 5G technologies. Though this move stirred the rumor mill, people just need to know that it is an operational shift and not a sign that the company is backing out of business.
How Financially Stable Is Verizon Right Now?
Financially, Verizon seems to be doing well. As of 2023’s first quarter, they reported revenue of USD 32,912 million, which, though slightly lower than the preceding year, is still significant. Net income clocked in at USD 4,909 million.
Of course, concerns linger about their business model and the potential for increased borrowing costs, especially as competitors like T-Mobile ramp up the pressure. While some financial projections have hinted at a 36.0% chance of bankruptcy, it’s paramount to stress that bankruptcy doesn’t necessarily equate to going out of business.
Why Did Verizon’s Revenue Keep Dropping?
Several factors contributed to the dip in revenue that Verizon is presently experiencing. The company is presently struggling with a significant drop in the sales of wireless equipment amidst challenging economic landscapes.
Their decision to close the 3G network led to the loss of a substantial customer base, which led to a drop in revenue. Well, anyone would expect that anyway – the 3G network is one of the leading services of Verizon. Shutting it down sure tells on their pockets.
Apart from that, a decrease in total wireless connections and the shedding of 74,000 Fios video customers also played a role. So, if you are asking what led to the drop in revenue for Verizon, you definitely may not be able to trace it to just one factor. Many factors come together to make this happen for the iconic brand.
How Did Verizon Intend to Thrive In this Challenging Time?
Aiming for resilience, Verizon has announced a clear growth path. The company hopes to boost its wireless service revenue, targeting an impressive growth rate between 2.5% and 4.5% in 2023. Contrary to the trend of inflating prices, Verizon is consciously keeping them stable to avoid overburdening their clientele.
Expanding their 5G network is another focal point. With the world veering towards faster, more efficient connectivity, this could be Verizon’s unique chance to once again hold significance in the market.
2020 witnessed Verizon’s acquisition of Tracfone, a strategic move to tap into the low-income customer segment, thereby broadening their horizon. Moreover, urging 3G users to transition to upgraded devices is another tactic they’re employing to ensure consistent service use.
Is Verizon Going Out of Business – Final Note
Is Verizon going out of business? We believe you already have an answer to this. While challenges abound, the rumors of Verizon’s permanent closure are greatly exaggerated.
The company is making strategic moves and investing in cutting-edge technology to make sure it’s able to serve its customers for many years to come. That doesn’t look like a company preparing to pack up and leave the market.
So, is Verizon going out of business? The answer is a resounding no. Verizon is here to stay, adapting and evolving in its quest to remain a leader in the telecommunications world.
FAQs
Why are customers leaving Verizon?
Customers are leaving Verizon primarily due to price hikes associated with their bills. The introduction of certain services, such as the expansion of the C-band 5G service, may have led to increased costs for some users, prompting them to seek more affordable alternatives.
How many customers has Verizon lost in 2023?
In the first quarter of 2023, Verizon reported a loss of 263,000 wireless retail postpaid phone customers. They also noted a loss of 351,000 wireless retail prepaid customers during the same period.
Did Warren Buffett dump Verizon?
Yes, Warren Buffett’s Berkshire Hathaway acquired 146.7 million shares of Verizon Communications Inc. in 2020, valued at about $8.6 billion by the end of that year. However, they began selling off these shares in early 2022 and completely exited their position in Verizon by Q2 2022.
What service is Verizon discontinuing?
Verizon discontinued its 3G network service. The company announced that they completed the shutdown of the 3G network by December 31, 2022. This means they no longer support devices and extenders that rely solely on 3G connectivity.
Related Articles You Might Like:
