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Type | Joint venture |
---|---|
Industry | Wireless communications |
Founded | 2000 |
Headquarters | Basking Ridge, New Jersey, United States |
Number of locations | 2,330 |
Area served | United States |
Key people | Dan Mead, CEO Andrew Davies, CFO Marni Walden, COO |
Services | Nationwide Single Line Plan Nationwide Family Plan Verizon Wireless Prepaid Mobile Broadband Plans |
Net income | ![]() |
Employees | 85,000 (2011) |
Parent | Verizon Communications (55%) Vodafone Group Plc (45%) |
Website | verizonwireless.com |
References: [1][2] |
Verizon Wireless (legal name: Cellco Partnership d.b.a. Verizon Wireless), is a mobile network operator that offers wireless voice, messaging and data products and services to customers in the United States. Verizon Wireless is the largest wireless communications services provider in the United States with 108.7 million subscribers as of the end of 2011.[3]
Headquartered in Basking Ridge, New Jersey, the company is a joint venture of U.S. telecommunications firm Verizon Communications and UK multinational mobile network operator Vodafone.[4] Verizon Communications holds 55 percent ownership and Vodafone hold the remaining 45 percent ownership of the joint venture.[5][6]
On January 9, 2009, Verizon Wireless acquired Alltel Wireless in a deal valued at $28.1 billion.
Contents |
History
Verizon Wireless traces its roots to Bell Atlantic Mobile, NYNEX Mobile Communications, AirTouch Communications, PrimeCo Communications, and GTE Mobilnet. Bell Atlantic Mobile and NYNEX Mobile Communications merged in 1995 to create Bell Atlantic – NYNEX Mobile,[7] and in 1997 their namesake Baby Bell parents followed suit to form the new Bell Atlantic and their wireless subsidiary was renamed Bell Atlantic Mobile. Bell Atlantic Mobile and NYNEX Mobile Communications were created from Advanced Mobile Phone Service, Inc., which was a subsidiary of AT&T created in 1978 to provide cellular service nationwide. AMPS, Inc. was divided among the RBOCs as part of the Bell System Divestiture.
Meanwhile, in June 1999, AirTouch Communications of San Francisco merged with UK-based Vodafone Group Plc, forming Vodafone AirTouch Plc. In September 1999, Vodafone AirTouch announced a $90-billion joint venture with Bell Atlantic Corp. to be called Verizon Wireless, and which would comprise the two companies' U.S. wireless assets: Bell Atlantic Mobile and AirTouch Paging. This wireless joint venture received regulatory approval in six months, and began operations as Verizon Wireless on April 4, 2000. The name "Verizon" itself, a portmanteau, was derived by combining the word "veritas," a Latin term that means "truth," and the word "horizon." Together, they are supposed to conjure images of reliability, certainty, leadership, and limitless possibilities.[8]
On June 30, 2000, the addition of GTE Wireless' assets, in connection with the merger of Bell Atlantic and GTE to form Verizon Communications, made Verizon Wireless the nation's largest wireless communications provider. Verizon held that position until Cingular's acquisition of AT&T Wireless in 2004, and again after their acquisition of Alltel in 2009.[9] For the joint venture, Verizon Communications owns 55%, which is held through its subsidiaries Bell Atlantic Mobile Systems LLC and GTE Wireless, Inc., which hold 24.2% and 30.8% respectively, and UK-based Vodafone Group (formerly Vodafone AirTouch) owns 45% through its subsidiaries PCS Nucleus, L.P. and JV PartnerCo, LLC which owns 6.2% and 38.8% respectively.[5][10]
Acquisitions and divestments
- At the end of 2006, Verizon Wireless bought out West Virginia Wireless, a regional GSM cell phone company.
- On July 30, 2007, Rural Cellular Corporation (Unicel) announced it agreed to be acquired by Verizon Wireless (a CDMA carrier). Verizon said that it plans to convert RCC's GSM customers to CDMA technology, but it will continue to operate RCC's current GSM network in order to generate roaming revenue. The sale is expected to close in early 2008, pending approvals from the FCC and potentially the Department of Justice, to ensure that the acquisition won't be anti-competitive in some geographic areas. On October 4, 2007, Rural Cellular Corporation Shareholders Approve Merger Agreement with Verizon Wireless "ALEXANDRIA, Minn., October 4, 2007 (BUSINESS WIRE) – Rural Cellular Corporation ("RCC" or "the Company") (NASDAQ:RCCC) today announced that its shareholders voted to approve the merger agreement providing for the acquisition of Rural Cellular Corporation by Verizon Wireless for approximately $2.67 billion in cash and assumed debt."
- In November 2007, a few Rural Cellular (Unicel) Subscribers mounted an effort to stop this sale of Unicel because "Cell Phone Service Will Change" and "GSM Service Will End".[citation needed]
- On August 1, 2008, the FCC voted to approve the deal. Per the Department of Justice, Verizon will divest certain properties in New York, Vermont, and Washington in order to complete the acquisition.[11]
- In mid 2007, Ramcell of Oregon made a deal to sell its assets to Verizon Wireless, Integration of local company to increase coverage area in Southern Oregon began in late 2010
- On January 22, 2008 SureWest Communications announced that it has entered into a definitive agreement to sell the operating assets of its Wireless business to Verizon Wireless.
- On June 5, 2008, Verizon Wireless announced that it has entered into an agreement to acquire Alltel for US$5.9 billion, plus the assumption of debt, in a deal that will create the biggest mobile phone company in the U.S. surpassing AT&T. Based on Alltel's projected net debt at closing of $22.2 billion, the aggregate value of the deal is $28.1 billion. The FCC approved Verizon's purchase of Alltel Wireless by a vote of 5–0 on November 4, 2008.[12] The FTC approved of the acquisition on December 10, 2008.[13] On January 9, this deal was finalized, making Verizon Wireless the largest carrier in the country.
- November 2008, Verizon Wireless purchased 2 markets in Kentucky formerly belonging to Dobson Communications from Att. This purchase closed the I75 corridor from Lexington, KY to Tennessee in which Verizon was lacking service. It also added about 40,000 customers to the Verizon wireless network.
- On May 8, 2009, AT&T announced an agreement to sell five Centennial Wireless service areas in Louisiana and Mississippi to Verizon Wireless, pending upon FCC approval of AT&T's acquisition of Centennial.[14]
- Also on May 8, 2009 AT&T announced a definitive agreement to acquire wireless assets from Verizon Wireless for $2.35 billion in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across 18 states. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The states represented are: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming. [1]
- On February 17, 2012, Verizon announced the purchase of Southeastern New Mexico wireless markets belonging to Plateau Wireless. The purchase will expand Verizon Wireless' brand and network footprint in southeastern New Mexico to the counties of Eddy, Chaves, Lea and a portion of Lincoln that it doesn't already serve with its own native network.[15]
Network
Verizon Wireless is one of two major U.S. carriers that use CDMA technology, the other being Sprint Nextel. Alltel also used CDMA before becoming part of Verizon Wireless. Other regional carriers that use CDMA are: U.S. Cellular, Cricket, and MetroPCS (see List of United States mobile phone companies for more information). Verizon supports the 3 generations of CDMA (IS-95, 1x, and EV-DO) networks and now its newest 4G LTE service which was released on Sunday December 5, 2010 in 38 cities. At that time, 4G LTE service was only offered as a mobile broadband data option. 4G LTE-Compatible Verizon mobile phones were released in the first quarter of 2011.[16]
Verizon Wireless invests $5.7 billion annually on average to maintain and expand its nationwide CDMA network.[17] Verizon Wireless offers voice services as well as 3G data services such as wireless broadband based on EV-DO Rev A, text and picture messaging, over-the-air downloadable applications and content from its "Media Center" ( previously called, Get-It-Now) service, Video on Demand in the form of V CAST (which allows customers to download and view video content), location-based services, and Push-to-Talk.
On June 30, 2007, Verizon Wireless completed the overhaul of the entire EV-DO network to EV-DO Rev. A. This enables PC Cards and certain phones to obtain theoretical peak download speeds of 3.1 Mbit/s and upload speeds of up to 1.8 Mbit/s.[18] The actual download and upload speeds vary due to a number of factors, and users will typically see speeds close to 1 Mbit/s down, and 500 kbit/s up.
On November 27, 2007, Verizon Wireless announced plans to allow all cell phones compatible with their CDMA technology to run on their network. Users of such phones are also allowed to use any application they wish.
However, on September 20, 2007, Verizon Wireless announced a joint effort with the Vodafone Group to transition their networks to the 4G standard LTE[19] and on November 29, 2007, Verizon Wireless announced that they would start LTE trials in 2008. On December 9, 2008, Verizon announced that they intend to build and begin to roll out an LTE network, by the beginning of 2011.[20] Adopting LTE would make for a gradual shift away from Verizon Wireless’ current use of CDMA technology because it is a completely different platform, but would offer increased operability for users traveling worldwide.[21]
On January 25, 2009, Verizon Wireless released its first Femtocell called the Verizon Wireless Network Extender.[22]
Verizon claims to operate "America's Largest and Most Reliable Wireless Network," covering approximately 290 million people.[23]
On December 5, 2010 Verizon Wireless launched its “4G LTE" network. In an announcement made on January 6, 2011, from the Consumer Electronics Show in Las Vegas, Verizon Wireless stated in the first half of 2011 they will release: 10 new LTE devices including, five smartphones, two tablets, two netbooks, and two MiFi hotspots.[24]
Advertising
In 2000, Verizon Wireless advertised they were, for a time, the largest cellular network in the country by showing people using cell phones and then gesturing with two fingers, much like the World War II-era "V for Victory" sign, to show that the person was on the Verizon ("V" or "iN") network. The slogan for Verizon Wireless at that time was "Join in." (Reminiscent of the slogan "Join in" was used in their marketing scheme up to this day. i.e., "iN-calling," "iN-messaging," and even the toll-free number "1-800-2-JOIN-IN.").
Later, Verizon adopted the slogan "We never stop working for you," with commercials (starting in 2002[25]) depicting a Verizon employee roaming about in strange places continuously asking, "Can you hear me now? Good." (The "employee" is played by stage actor Paul Marcarelli) The "test man" represents Verizon test technicians.[26]
In 2005, Verizon Wireless added an "army" of network engineers into their commercials in conjunction with the "test man" and introduced the slogan "It's the Network." to emphasize their network quality. (Verizon Wireless still uses the slogan "We never stop working for you." from time to time – especially on their website, toll-free number, and shopping bags.)
In 2008, Verizon Wireless sponsored Korean pop sensation Se7en further helping Se7en trademark his name in America and promote his U.S. debut single that was released in spring 2009.
Also in 2008, Verizon Wireless began a new television advertising campaign, with parodies of horror movies (including The Shining), with people trying to scare a main character with tales of a Dead Zone where calls cannot be made, who calmly responds that he or she has Verizon, and then the slogan appears, "Don't be afraid of Dead Zones."
In early 2009, Verizon Wireless officially dropped the "IN" campaign. Previously, calls between two Verizon Wireless subscribers were referred to as IN calling, but will now be referred to as Mobile-to-Mobile calling. With this change, Verizon Wireless also renamed their prepaid service Verizon Wireless Prepaid from iNPulse to Prepay.[27]
In mid-2009, when the markets Verizon acquired from Alltel began to transition to the Verizon Wireless brand, web ads began to appear showing the test man with Chad, the Alltel salesman character that has appeared on Alltel commercials for the past five years.[citation needed]
Late in 2009, Verizon began ads that made use of the iPhone "There's an app for that" slogan, changing it to "There's a map for that" (see below). They began with maps showing large areas of the United States covered in red to represent Verizon's 3G service, with very limited areas in blue to show 3G service for AT&T, which at the time was required to use the full capabilities of the iPhone.[28] The ads progressively got more aggressive, including one where the iPhone was placed on the Island of Misfit Toys.[29]
In 2010 Verizon launched its latest advertising campaign creating the new tagline "Rule The Air." The campaign boasts Verizon's allegedly superior ability to "send a strong signal" and early advertisements heavily feature Verizon's range of Android powered smartphones.
In 2011, Paul Marcarelli reprised his role as the Verizon test man to promote the Verizon iPhone 4, slamming AT&T's network when he answers a phone call using the iPhone with, "Yes, I can hear you now."[30]
Awards
2004
2005
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2007
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Content delivery systems
Overview
Get It Now is Verizon Wireless' implementation of Qualcomm's BREW technology, allowing a user to download and use applications on a Verizon Wireless Get It Now-enabled phone. It is a proprietary interface to download ringtones, music, games, applications, and use instant messaging on a phone. Users usually are unable to load content on the Verizon Wireless phones outside of Get It Now system; this is done for financial reasons. Verizon Wireless has exclusivity agreements with its Get It Now content providers (this is a walled garden system). Sometimes cell phone enthusiasts perform unsupported modifications to their phones or use 3rd-party software to make the phone accept non- Get It Now -originated content, or use free services that send ring tones through picture messaging, like Mobile17. In 2008 Verizon Wireless announced that their "Get It Now" service will be renamed "Media Center" on all their future phones beginning with the LG EnV2.
On March 25, 2011, Verizon sent a software update to Get It Now to users of some older phones. If the phone was not activated at that time, or had a data block, the phone did not receive the required update to continue Get It Now functionality. Phone models known to be affected include the LG VX8100, LG VX8300 and LG VX9100 series. Subscribers with these phones can no longer acquire applications, update applications and software or access Backup Assistant from their phones unless they visit a Verizon Wireless Retail Store and have the phone flashed with the update.
All applications through Get It Now/Media Center are BREW-based and the selection differs depending on what Verizon phone one is using.
Many first-time mobile phone users freely access the internet through internet-capable phones ("Mobile Web"), only to find that a sizable charge has been added to their phone bill at month's end. Verizon currently charges $1.99 USD per megabyte (in 2009) downloaded into the phone from the internet. This is called "Megabyte Usage" or "Data Usage". Whenever anyone accesses the internet, the charge is incurred, because in order to access the web, web pages must be downloaded into the phone for viewing. New customers are often confused on what activities incur a charge and which activities do not. Visiting 50 web pages is a download of .3 MB. A visit to Media Center/Get It Now page incurs a charge, even if nothing is bought/downloaded. Music, games or ringtones downloads incurs the MB charge, but Picture/Video messaging (MMS) does not charge. Whenever data is being downloaded into the phone, a little phone icon with arrows going back and forth appears. Blocks can be set by account owner to block specific types of downloads. If a specific type of unlimited download is included in the customer's plan, then the customer is charged a flat fee per month instead of per MB.[31][32]
Within Get It Now, Verizon has implemented a aGPS navigation application, VZ Navigator, that works for the most part like a standalone aGPS unit. Users can also locate businesses within their vicinity, searching by category or business name. Users can type in addresses and receive turn by turn directions to their destination.
V CAST
Also within Get It Now/Media Center is V CAST, Verizon Wireless' high-speed audio, video on demand, and entertainment delivery system.
V CAST Mobile TV
Verizon Wireless uses Qualcomm's MediaFLO technology to broadcast live TV to certain phones, such as the LG Voyager. A VCAST mobile TV subscription is required. This service was discontinued in November 2010.
V Cast Music with RHAPSODY
A subscription based service which allows access for $9.99 per month for unlimited song downloads to a person's computer using the VCAST with Rhapsody software. This program also allows the user to sync the music with up to three different media devices examples (mobile phones and mp3 players). The user has to authorize these devices through the VCast with Rhapsody software in order to sync the music. However if the consumer wants to move the music from a digital medium to a physical medium example (compact disc) the consumer will need to pay $.99 per song in order to move it to that physical medium.
Backup Assistant
Backup Assistant is a white label product that backs up the mobile address books of Verizon Wireless subscribers. The contacts are stored on My Verizon and can be edited and migrated to a new device if needed. However, on March 25, 2011, Verizon discontinued offering Get It Now to users of some older phones. Subscribers with these phones can no longer access Backup Assistant from their phones. Backup Assistant is free for Verizon Wireless customers. The technology for Backup Assistant is provided by Synchronoss Technologies, Inc. In February 2010, Backup Assistant became free to all VZW subscribers.
"Friends & Family"
On February 16, 2009, Verizon Wireless launched its new service, called Friends & Family, in light of their recent acquisition of Alltel Wireless, which had a similar service called My Circle. With an eligible plan, customers will have unlimited calling to a select group of numbers outside their standard mobile-to-mobile calling group, including landlines. This will give single line accounts up to 5 numbers to choose from on plans with 900 or more minutes, and family plan accounts up to 10 numbers to choose from on plans with 1,400 or more minutes.[33]
Home Phone Connect
In February 2011, Verizon Wireless rolled out "Home Phone Connect".[34] This wireless local loop service competes directly with landline services from local carriers and offers unlimited US calling for $19.99/month plus taxes and surcharges.[35] Although the Verizon Wireless Network is used to carry signal to and from the residence where the service is installed, subscribers use their home phones rather than a mobile handset to make and receive calls. The device which interfaces between the Verizon network and home phones is identical in function to the devices called ATAs which VoIP providers like Vonage use as an interface between the Internet and phones. Verizon Wireless promotes the fact that no Internet connection is required and supplies the interface device for $29.99 with a two year contract or charges a one time fee of $129.99 on a month-to-month plan.
The device supplied by Verizon Wireless includes battery backup so that, like a PSTN line, it will continue to function during a power outage. It also has a GPS so that accurate location information can be provided on a 911 call.
The service is not compatible with satellite TV DVRs, medical monitoring devices, fax machines, and most wired home monitoring systems. Wireless security systems, however, circumvent the need for a landline connection and are therefore unaffected by the switch to Verizon's device.
A variant of the service is available for a $9.99/month plus taxes and surcharges. This is essentially an extra line on an existing Verizon Wireless mobile phone plan and does not include unlimited calling.
Partnerships
Main article: Claro Puerto Rico
The Claro brand ("claro" being Spanish for "Sure or Clear") was launched in Puerto Rico on May 18, 2007 as rebranding the Verizon Wireless trademark, after Verizon International sold its stake in Puerto Rico Telephone Co. (PRTC). Claro is the wireless arm of PRTC, which serves wireline telephone and data services in the island. The brand was introduced to the wireless segment after March 30, 2007 acquisition of the telecom by América Móvil.
The company has made public its plans to launch a GSM/UMTS network parallel to the CDMA/EvDO network it operates since 2002. Claro has mobile voice and data services in Puerto Rico's 78 cities and towns and its coverage is constantly expanding, the company says.
Verizon Wireless still offers voice coverage in Puerto Rico by roaming on the Claro network. On America's Choice II and Nationwide calling plans, usage on this network is included at no cost (considered Extended Network) but on any other plan it costs $.69 per min.
Starting May 1, 2009, due to an agreement with the CDMA company "Iusacell", Verizon Wireless offers the Nationwide + Mexico calling plans. These plans allow users to call Mexico as part of their regular minutes. Users who travel can also roam into Mexico at no additional charge.[citation needed]
On August 17, 2009 Verizon began their work with Catalyst Communications Technologies. Catalyst integrated Verizon Wireless Push-to-Talk service with traditional Land Mobile Radio (LMR) Systems. This allowed for greater RoIP. This advanced solution dynamically routes Push-to-Talk voice on the Verizon Wireless nationwide network and calls placed on private radio systems and connects the two together. The new solution routes push-to-talk voice and calls placed on private radio systems on the Verizon Wireless nationwide network. The Catalyst IP|Console provides dispatch of Verizon Wireless push-to-talk calls as well as legacy Land Mobile Radio calls. The solution is designed for public safety, transportation, energy, federal and other critical communications agencies.[36]
On October 14, 2010 Apple Inc. and Verizon Wireless announced a partnership that would bring the Apple iPad to Verizon Wireless Stores across the United States on October 28, 2010. While the collaboration will not see Verizon compatible technology embedded in the iPad, it will bundle the iPad Wi-Fi with a Verizon MiFi 2200 Mobile Hotspot.[37]
On January 5, 2011, at the International Consumer Electronics Show (CES) in Las Vegas, Verizon Wireless demonstrated the Onsight mobile collaboration system by Librestream using the Verizon Wireless 4G LTE network. The system allows field workers to stream high resolution video, speak, and draw onscreen with remote workers, extending the power of mobile collaboration to locations previously difficult to reach.[38]
On January 11, 2011, Verizon announced during a media event that it had reached an agreement with Apple Inc. and would begin selling a CDMA iPhone 4. The Verizon iPhone 4 went on sale on February 10, 2011.[39][40][41] It includes features such as 'Mobile Hotspot', which allows a user to use the iPhone as a wireless hotspot, with up to 5 devices connecting at one time. It also has a new antennae that is said to solve the 'death grip', which means that holding the iPhone 4 in a certain way would deplete its signal rapidly. Due to the minor 2-mm downward movement of the volume buttons, cases were adapted to specifically fit the Verizon iPhone.[42]
On December 19, 2011, General Motors announced plans to join with Verizon to offer video chat and streaming content to automobile passengers.[43]
Major competitors
Controversies
GPS disabling of certain devices
Verizon no longer restricts or disables GPS Chips in their phones. However, in previous years, Verizon had a history of restricting GPS functionality on many of the devices that they sell. On November 30, 2007 Verizon Wireless was named in a class action lawsuit alleging that the company deceived customers by advertising that the devices were "GPS Enabled." Upon purchase, the suit alleges that Verizon intentionally disabled the devices' free, built-in global positioning systems (GPS) then offered a proprietary Verizon fee-for-service GPS.[44]
Since this dispute, all smartphones sold on the Verizon network have their GPS receivers unlocked by default. Select older devices can be unlocked with a firmware upgrade. Phone hackers were able to restore GPS access to some older models which did not receive firmware updates. Access to aGPS, however, remains locked on some smart phones, notably the Palm Pre Plus,[45] which requires aGPS in order to operate as a Standalone GPS like Verizon claims it will do.
Bluetooth capability
Today, Verizon no longer restricts any bluetooth settings or capabilities. However, at one point Verizon did lock out some bluetooth options. Verizon advertised the Motorola V710 as having full Bluetooth capability, when in reality it had no OBEX or OPP functions built in. After many complaints, a class action suit was filed for false advertising, not only for advertising missing capabilities, but also for telling customers who complained to Verizon that an update was coming out "in November." The lawsuit was initiated in January 2005 and settlement decision became final on March 20, 2006, with Verizon offering to qualified members of the class action suit (purchased a V710 BEFORE February 2, 2005) a $25 credit to all of its V710 customers, or the option to trade in the V710 for $200 or original purchase price and allow them either to keep their phone number and service or to break their contract and discontinue service with Verizon. The settlement to the lawsuit did not directly address the V710's restrictions. The same hardware crippling exists with Motorola's successor to the V710, the E815, but unlike the V710, the E815 was marked clearly that OBEX and OPP was disabled. Additionally, through a SEEM edit, OBEX could be enabled on the 815, but not on the 710 (the Verizon e815 lacks the OPP profile altogether).
OBEX and OPP was disabled on the majority of Verizon's handsets. This prevents phone to phone transfers through bluetooth. The reasoning given by Verizon is to prevent lawsuits involving the use of bluetooth to transfer licensed or copyrighted materials.
MP3 restrictions
In previous years, Verizon Wireless had removed the ability to use MP3s as ringtones for some phones. This included blocking the feature in firmware updates for the Motorola V710 and several other newer phones for ringtone transfers, making it more difficult – but not impossible – to transfer MP3s from the phone's microSD card at that time. This update also disabled editing of the homepage field in WebSessions, making it more difficult to use alternate WAP gateways. One result of this crippling has been a prominent network of "unofficial" web sites, documenting how to enable, access, or use hidden or crippled features.
Today, nearly all Verizon Wireless phones can save an MP3 as a ringtone, simply by Picture messaging or e-mailing the file as an attachment.
Mobile Broadband plans
Verizon Wireless had come under fire by "power users" of its EV-DO wireless data network (called Mobile Broadband, formerly BroadbandAccess), for using language in its terms of service which heavily restricts what activities an EV-DO user can conduct even though the service is advertised as offering "Unlimited" data usage. The service was in fact limited to 5 GB of data transfer per month (as part of a fair use policy). The language in Verizon Wireless' previous usage agreement stated:
Unlimited NationalAccess/BroadbandAccess services cannot be used (1) for uploading, downloading or streaming of movies, music or games, (2) with server devices or with host computer applications, including, but not limited to, Web camera posts or broadcasts, automatic data feeds, Voice over IP (VoIP), automated machine-to-machine connections, or peer-to-peer (P2P) file sharing, or (3) as a substitute or backup for private lines or dedicated data connections... We reserve right to limit throughput or amount of data transferred, deny or terminate service, without notice, to anyone we believe is using NationalAccess or BroadbandAccess in any manner prohibited above or whose usage adversely impacts our network or service levels.[46]
Under these terms, customers will have to pay five cents per additional Megabyte (MB) using more than 5 GBs per month.[47]
Kelsey Smith cell phone records
On June 2, 2007, Kelsey Smith, a teenager from Overland Park, Kansas, was abducted in a Target parking lot behind the Oak Park Mall. She was murdered later that night, and immediately after an abandoned car was found, a search began for her. Local law enforcement involved in the investigation contacted Verizon Wireless, the family's cell phone provider at the time of the murder, for records to pinpoint a search location for her. Despite efforts made by the local investigators and eventually the FBI, it took Verizon three days to hand over cell phone records to law enforcement.[48] A Verizon technician pinpointed a cell phone tower and told investigators to search 1.1 miles (1.8 km) north of the tower. Within 45 minutes, the body of Kelsey Smith was found.[49]
"There's A Map For That"
In late 2009, Verizon started an ad campaign "There's A Map For That," to parody the iPhone's "There is an app for that" and the AT&T network coverage. Since iPhones used AT&T, and maps used in the commercials claimed Verizon had five times the 3G coverage of AT&T, iPhones were not as useful as they could be with Verizon's 3G coverage. This campaign was followed by new "iDon't" ads for Droid phones which pointed out that Droids could do more than the iPhone could do. In November, AT&T filed a lawsuit against Verizon stating that they reach the same number of customers as Verizon Wireless, and claiming the ads were "misleading" and caused a loss of "incalculable market share." The ads only refer to 3G, and not overall coverage. However, the ads claim that many people outside urban areas may not receive 3G, in an industry where 4G may soon be the premium standard. Verizon has edited their ads, removing "out of touch" and adding in small print, "Voice and data services available outside of 3G areas."[50][51] AT&T still does not agree with the ads, stating in their response, "The ads still confuse non-technical viewers into thinking AT&T provides no service at all outside of its 3G coverage." Verizon responded as follows: "AT&T did not file this lawsuit because Verizon’s 'There’s A Map For That' advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts."[52] AT&T was defeated and Verizon continues[when?] to air the "There's A Map For That" ad campaign.[53] AT&T has since issued a response featuring actor Luke Wilson, stating that AT&T covers 97% of Americans, although this is not entirely 3G coverage.
Refunds for billing errors
On October 3, 2010, the U.S. Federal Communications Commission (FCC) confirmed that they were investigating so-called "mystery fees" that Verizon Wireless was charging their customers. The "mystery fees" were charged to customers who did not have data usage plans, but had devices capable of using data. These devices could access web-pages that were supposed to be free, and instead, they would incur charges. Verizon charged $1.99/MB to customers without data plans.[54]
On October 28, 2010, the FCC announced that they had reached a settlement with Verizon. Verizon refunded a minimum of $52.8 million to 15 million customers. In addition to the refund Verizon Wireless provided relevant customer service training, information to consumers wanting refunds, and plain-language explanations of data charges.[55]
In addition to the $52.8 million Verizon Wireless paid in refunds, they also made a $25 million payment to the U.S. Treasury. Verizon stated that the payment to the treasury was voluntary, and that they accepted responsibility for their errors.[56] The payment to the treasury is the largest in history, followed by a $24 million fine that Univision paid in 2007.[57]
Notes
Early in 2006, Verizon announced their intent to buy out the remaining 45% of stock of Verizon Wireless from Vodafone.[58] Vodafone, however, stated they "have no current plans to exit" the US market by giving up its stake in Verizon Wireless.[59]
On December 19, 2006, it was announced Verizon Wireless' CEO Denny Strigl has been called up to parent Verizon Communications to be the company's new President and COO. He was to begin serving in the new post on January 1, 2007. Verizon Wireless COO Lowell McAdam was to take over Strigl's role as CEO of VZW.[60]
On September 20, 2010, it was announced Verizon Wireless' CEO, and Verizon COO Lowell McAdam has been called up to parent Verizon Communications to be the company's new CEO, replacing Ivan Seidenberg. He was to begin serving in the new post on October 1, 2010. Verizon Wireless Daniel Mead was to take over McAdam's role as CEO of VZW.[61]
Qwest Communications International Inc. (NYSE: Q) and Verizon Wireless announced on May 5, 2008 that they have signed a 5-year agreement for Qwest to market and sell Verizon Wireless service beginning the summer of 2008. Financial terms of the agreement are not being disclosed.[citation needed]
On November 28, 2011 Verizon Wireless retail workers in Bloomington, Illinois filed for union representation from the Communications Workers of America. [62]If the union election passes, this will be the first union-represented Verizon Wireless retail location in the United States.
On February 21, 2012, T-Mobile filed a formal petition with the FCC asking them to block the sale to Verizon Wireless of spectrum first purchased at auction in 2006 by Comcast, Time Warner Cable, and Cox Communications.[63]
See also
- AT&T Mobility
- Sprint Nextel
- T-Mobile USA
- TracFone Wireless
- Librestream
- Venturi Transport Protocol
- MetroPCS
- Cricket Wireless
- US Cellular
- Page Plus Cellular
- GreatCall
References
- ^ Stores 2010 Hot 100 Retailers
- ^ http://aboutus.verizonwireless.com/leadership/executive/index.html
- ^ http://news.cnet.com/8301-30686_3-57364576-266/verizon-suffers-$2b-loss-on-pensions-iphone-costs/?tag=mncol;topStories
- ^ "Verizon Communications Inc (Verizon)." Manta. Retrieved on April 20, 2009.
- ^ a b DePamphilis, Donald (2007). Mergers, Acquisitions, and Other Restructuring Activities. Academic Press. pp. 603. ISBN 978-0123740120.
- ^ About Us
- ^ Landler, Mark (1995-08-08). "Market Place; A Bell Atlantic-Nynex cellular venture has spinoff prospects". The New York Times. http://query.nytimes.com/gst/fullpage.html?res=990CEFD6123FF93BA3575BC0A963958260. Retrieved 2008-11-28.
- ^ "The History of Verizon Communications". Verizon Wireless. http://investor.verizon.com/profile/history/. Retrieved 2007-05-07.
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