Page 25 - ARUBA TODAY

BUSINESS Friday 21 april 2017
A25

Amid competition, Verizon loses key customers for first time

TALI ARBEL retain customers thanks
JOSEPH PISANI to its high-quality network.
Associated Press While Sprint and T-Mobile
NEW YORK (AP) — Verizon, have gotten better, they
the once-unstoppable cell- don’t have as extensive a
phone leader in the U.S., reach into the most rural
lost key wireless custom- parts of the country. T-Mo-
ers for the first time, even bile responded with other
as it brought back unlim- perks, such as free data
ited data plans to counter when traveling abroad
smaller rivals. and when watching video
In the first three months from major streaming ser-
of the year, Verizon lost vices in the U.S. T-Mobile
307,000 wireless subscrib- ultimately turned to unlim-
ers who are billed each ited plans, as did Sprint,
month, the more lucra- forcing Verizon to resurrect
tive kind of wireless cus- something it had ditched
tomer. MoffettNathanson nearly six years ago.
Research says it’s the first- This photo shows signage at a Verizon store, in North Andover, Mass. On Thursday, April 20, 2017, Verizon’s unlimited plans
ever lost in that category, Verizon announced its profit sunk 20 percent in its first quarter as it lost wireless customers. The are more expensive than
which covers phones, tab- New York company says it would have lost even more customers if it didn’t launch its unlimited options from Sprint and T-
lets, smartwatches and cellphone plan in February. T-Mobile and Sprint have been trumpeting their cheaper unlimited Mobile, so the company
other connections. For cell- plans. will have to show it still has
phones alone, Verizon lost (AP Photo/Elise Amendola) the ability to draw custom-
289,000 customers. Verizon ers willing to pay more for
said it would have lost even go over their data limits. es and offers to pay people AT&T, which lost 1.2 million a better network. AT&T’s
more customers if it hadn’t Unlimited plans don’t have to switch. last year. Verizon gained unlimited plan costs about
launched the unlimited those fees. Last year, T-Mobile gained 209,000, but that was small- the same as Verizon’s; a
plan. Growth in the wireless sub- 3.3 million of the lucrative er than 1.1 million gained cheaper unlimited option
Total wireless revenue fell scribers has slowed down phone customers — “post- in 2015. Verizon has had has fewer features.
5 percent to $20.9 billion, now that most Americans paid” in industry jargon — quarterly losses in post-paid The competitive wireless
because of fewer custom- have a cellphone. Instead, while Sprint gained 910,000, phone customers before, market has led to specula-
ers and less money com- companies have been according to MoffettNa- but not when other wireless tion that Verizon will try to
ing from the fees Verizon poaching customers from thanson. Much of that connections are included. buy another company to
charges when customers each other with lower pric- came at the expense of Verizon has been able to broaden its business.q
CSX predicts 25 percent profit jump as restructuring begins

JOSH FUNK at Canadian Pacific and industries once dominated, chase $1 billion worth of ule. That will likely allow it to
AP Business Writer Canadian National rail- Harrison said. its stock over the next year eliminate locomotive pur-
OMAHA, Neb. (AP) — CSX roads. “I think one of the So CSX is already working and increased its quarterly chases for some time.
Corp. expects to deliver a things that people miss is to streamline the railroad’s dividend to 20 cents from Streamlining the railroad
25 percent increase in prof- the more complexity there organization and eliminate 18 cents. Over the sum- and imposing tighter
its this year as the railroad is in the network the better redundant railyards. The mer, CSX will start storing schedules will allow CSX
works to streamline opera- model you can apply to railroad will go from nine around 550 locomotives to increase the average
tions under new CEO Hunt- it and you can take more divisions to only a couple and roughly 25,000 freight speed of its trains and re-
er Harrison. advantage of the oppor- and its dispatching opera- cars that won’t be needed duce the number of stops
The Jacksonville, Florida- tunities,” Harrison said in a tions will be consolidated. as the railroad begins op- they make in terminals and
based railroad said Thurs- conference call to discuss CSX also said it will repur- erating on a tighter sched- railyards. q
day that its earnings per the railroad’s first-quarter
share will jump about 25 results.
percent over last year’s All the railroad mergers
$1.81, but that excludes re- that went into building CSX
structuring costs. over the past 190 years left
Harrison said he thinks there it with way more infrastruc-
is more opportunity for im- ture than it needs, espe-
provement for CSX than cially in the Rust Belt where
there was when he started the steel and automotive