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Verizon, AT&T find new markets as traditional revenues flatten

Matt Hamblen | July 29, 2016
Digital ads are growing for both

The most profitable of these new businesses is widely expected to involve new advertising technology platforms. Customer data from AOL and Yahoo, combined with Verizon's own internal customer data, means the carrier will be able to charge a premium for highly targeted internet advertising and will have a global base of customers not limited to the U.S., Anglitz said.

AT&T is also interested in digital advertising, "but they are more covert about it than Verizon and their work is more homegrown," Antlitz said.

Protecting the wireless service market

Although AT&T and Verizon have pursued new markets, traditional wireless phone service will continue to deliver up to 90% of each company's business, Antlitz predicted. As a result, customers are likely to continue to hear both companies brag about having the best network coverage and overall quality of service.

To that point, Verizon this week announced it had spent $5 billion in the first six months of 2016 on network enhancements. That's a total of $116 billion since 2000, the company said.

Verizon also noted it has faster wireless speeds in 37 states, according to the latest RootMetrics national performance study.

AT&T meanwhile today announced it had snagged the top ranking in the latest Wireless Customer Care rankings from J.D. Power. The ranking is based on a survey of 7,556 U.S. wireless customers in the first half of 2016. The top spot was previously held by T-Mobile.

AT&T and Verizon are the nation's two largest carriers by a large margin over T-Mobile and Sprint. Based on pre-paid and post-paid wireless customers, Verizon has 113 million, AT&T has 89.9 million, T-Mobile has 52.5 million and Sprint has 45.3 million.

 

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