This One Little Adjustment Might Bolster Verizon's (VZ) Wireless Margins
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What's the best way for Verizon Communications (NYSE: VZ) to expand margins in its Wireless unit?
Should better smartphone contracts be negotiated? Should it work harder toward more exclusive deals? Should it implement a new data plan structure?
Though strong suggestions, none of those is the quickest and easiest choice.
The proposal from Streetinsider.com is to do some account maintenance. It was recently brought to this author's attention that a friend was still getting a discount on his wireless bill from a company he hadn't worked at for about three years. The discount was initially an employee perk that never got remedied after switching jobs (though, for some reason, he hasn't made a big stink about getting the matter corrected).
Today, finance chief Fran Shammo said Verizon is projecting wireless margins of 50 percent in 2013, from operating EBITDA margin of 41.4 percent reported in the most recent quarter. Not including an increase in administrative costs, if Verizon asked companies to revamp lists of former employees receiving a discount of 20 percent per month on a wireless bill, how much more would those margins increase? Even a few basis points might be worth the effort.
Shares of Verizon are trading higher Tuesday morning.
Should better smartphone contracts be negotiated? Should it work harder toward more exclusive deals? Should it implement a new data plan structure?
Though strong suggestions, none of those is the quickest and easiest choice.
The proposal from Streetinsider.com is to do some account maintenance. It was recently brought to this author's attention that a friend was still getting a discount on his wireless bill from a company he hadn't worked at for about three years. The discount was initially an employee perk that never got remedied after switching jobs (though, for some reason, he hasn't made a big stink about getting the matter corrected).
Today, finance chief Fran Shammo said Verizon is projecting wireless margins of 50 percent in 2013, from operating EBITDA margin of 41.4 percent reported in the most recent quarter. Not including an increase in administrative costs, if Verizon asked companies to revamp lists of former employees receiving a discount of 20 percent per month on a wireless bill, how much more would those margins increase? Even a few basis points might be worth the effort.
Shares of Verizon are trading higher Tuesday morning.
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