How AT&T and Verizon are turning a profit on wireless services
Posted On June 30, 2021
AT&t and Verizon, two of the country’s biggest wireless providers, are turning profits on the cellular and internet businesses that they’ve invested in, according to new data.
AT&G and Verizon have been on the winning end of the wireless business for years, and the data showed that they made a net profit of $7.2 billion on that business last year, according the data released Thursday by the Federal Communications Commission.
The FCC report also found that AT&Ts wireless business was “very healthy” and that the company made a “record” $6.4 billion profit on the mobile business in the first quarter of 2019.
AT&T, which has been the No. 1 wireless provider for the past three years, made a profit of nearly $7 billion last year and has been making a record profit every year since the start of the year.
AT&ts profit was up 19% year-over-year, while Verizon’s was up 8%.
The data shows that AT &T’s mobile business is still the most profitable business, though Verizon’s is making the most money, the FCC said.
“AT&Ts mobile business has made a record $6 billion profit in the second quarter of this year, making it the most successful of all the wireless providers,” FCC Chairman Ajit Pai said in a statement.
Verizon and AT&TS made a combined $2.9 billion in profit in 2016, and both companies have been profitable for more than five years.
AT &ts profit last year was $4.4 trillion, Verizon was $3.7 trillion and AT &t was $2,056 billion.
AT’ s profits have been declining since AT& ts profits peaked at $3 billion in 2009.
AT was a net net profiter last year.
The FCC said that AT’s profits have fallen dramatically since AT & ts mobile business started to decline in the last decade.AT&t’s mobile revenue declined by more than 30% in 2019 from the year before, and Verizon’s grew by more then 40%.
AT& ts revenue grew by less than 2% during the same time period.
The FCC said Verizon and AT’s revenue growth has been driven by the rise in broadband Internet and phone services.
AT and Verizon were both among the top three wireless providers in broadband data usage last year with a combined 1.6 billion people subscribing to broadband services.AT & t’s wireless business grew by 14% in the past year and was profitable, but Verizon’s increased by 20%.
AT && t’s profits grew by $3 trillion last year while Verizon saw its profits fall by $1.4 million.
AT’s profit was $737 billion, while the Verizon profit was about $638 billion.AT’s wireless revenue fell by nearly 33% last year from the previous year, and it is still a net loss for the company.
AT went from a net income of $1 billion in 2019 to a net revenue of $5.6 million in 2020.
Verizon went from $1 million in 2019 revenue to a revenue of nearly twice as much.
AT said it expects wireless revenue to be flat or decline in 2021.