Verizon is trying to become a technology org, but that is clearly not working. Many of its employees that work solving customer issues do not understand the products because these employees can not effort these products and use competitors products instead. This is true with wireless service and Fios service. When a company does not know how to grow the revenue they will start selling the assets and layoff the valuable and experienced employees. This can work in the short term but clearly investors will see the reduced long term growth prospects and vacuum of new ideas and innovation from the company. Clearly they are not diversified and kept all their eggs in wireless basket. They are not understanding that the alternative technology is emerging and there will be a day in the near future that wireless will become almost free just like what happened when voip replace Landline voice. No company ever became successful after dumping their skilled technical workers. In a recent interview Lowell agreed that he does not see any growth in the horizon. A company of this size came up with a highschool project application called go90 and expect increase advertising revenue. That app is released half backed with some of the essential features unimplemented. Soon their debt will be equal to their assets, if not already there yet. You know what that means.
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The downfall of the company s the wireless ego. $130B for a 45% share of one business group, when the entire company wasn't worth that much...
Terremark? Telematics? Edgecast? OnCue? Seriously?
The current management is tearing the company apart. They will only be forced out of office if they can not deliver to Wall St. and the shareholders over time. This management group cares only about their pay & incentives.
Eventually they will run out of tricks to play. Like look at all the tablets we sold at the last minute of the quarter to make our numbers. The company lost real vision when Ivan left. Most of this management offshored their code and keeps wondering how it is they get hacked continuously. It's because the code knowledge is offshore. It doesn't matter if CPI 810 is in effect. The security holes are still there.
The company will go flat 3yrs because of poor management decisions. They don't get it. They think they will be able to go wireless and somehow that will be the way to offer the consumer. Then they go and jack the wireless prices to keep ARPU in line.
Wireless is saturated in the US!
The 3yr plan isn't going to happen for 7-10yrs. Meanwhile they destroy the rest of the company? And share holder value is the best indicator/measure of performance.
I'd like to respond to the comment "Hopefully they'll keep employees that have helped them become the company they are today.".
The answer is simply this .... if you are Indian, willing to work for less than the average American and work much longer hours .... they'll keep you. Even if you're inept and can't do have the job in twice the amount of time.
Otherwise, start working on your resume.
Actually! Verizon is insanely diversified, which "could" be some of the problem, they're not just a spanking new wireless only company like say T-Mobile, which has all new infrastructure and a very finite set of assets to maintain. Verizon Wireless was a joint venture that happened to take off, eventually dwarfing many other segments of its portfolio. They have a legacy land line business, which is painfully locked into the company by legacy contracts and commitments, unions, customers, infrastructure, all of which is ever increasingly contracting. At one time a copper line would pull customers from every house it passed, now days, it could go for miles before it connects to its only customer on the line. That's a very expensive business model to support. Then there's FiOS, Cloud, Enterprise Services, Fleet Services, oh and Wireless. Hopefully they'll keep employees that have helped them become the company they are today. Time will tell.
Agreed. What a disgrace. It does not matter for him, as long he has a couple good years at $50 mil / year