Verizon Names Wireless Unit Exec as New COO
Verizon is now the 13th largest company in America with 2009 sales of $108 billion, but Seidenberg and Lowell face a number of challenges to keep its revenue growing. The first is that its traditional wire-line business has shrunk and continues to do so as more homes turn to VoIP and cellular service.
Cellular expansion is also a challenge. The U.S. market is saturated. The four largest carriers -- Verizon Wireless, AT&T (T), Sprint-Nextel (S) , and T-Mobile -- have nearly 269 million customers. The fight for wireless revenue is now based more on market share than on a growing market. That competition is likely to put more pressure on prices as each company vies to take subscribers from its rivals.
In addition, Verizon has to overcome the dominance of cable TV as the preferred product among consumers for home TV and broadband service. Cable is entrenched and has been for years. And, satellite TV has millions of residential customers. Verizon has spent $23 billion to build its fiber-to-the-home FiOS product. It has gained share, but those gains have been modest.
McAdam will have his work cut out for him now and when Seidenberg, 63, eventually leaves.