Latest news with #HansVestberg
The Star
6 hours ago
- Business
- The Star
Verizon owes $175 million in patent infringement case, Texas jury says
Hans Vestberg, Chairman and CEO of Verizon, rings the opening bell at the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2025. REUTERS/Brendan McDermid/File Photo (Reuters) -A federal court in Marshall, Texas, said on Wednesday that U.S. telecom company Verizon Wireless must pay $175 million in damages for violating an inventor's patent rights related to wireless communications technology. The jury's decision in favor of Headwater Research comes just months after the firm secured a $278 million verdict in a separate patent dispute against Samsung over wireless technology, also in the same Marshall, Texas, federal court. Spokespeople for Verizon and attorneys for Headwater did not immediately respond to requests for comment on Wednesday's verdict. Tyler, Texas-based Headwater was founded by scientist and inventor Gregory Raleigh. Headwater said in its complaint in 2023 that its patented technology allows wireless devices to "reduce data usage and network congestion, extend battery life by decreasing power consumption, and enable users to stay connected." Headwater said it shared information about its technology with Verizon under a non-disclosure agreement between 2009 and 2011. The complaint said that Verizon's mobile phones, tablets and cellular networks infringed Headwater's patents. Verizon denied the allegations and argued that the patents were invalid. (Reporting by Blake Brittain in Washington; Editing by Sherry Jacob-Phillips)
Phone Arena
7 hours ago
- Business
- Phone Arena
Verizon's CEO practically told employees to worry about their jobs
After Verizon reported its second quarter earnings a couple of days ago, it held its usual conference call with analysts to go over the results and to answer questions from Wall Street analysts and the media. During the call, Peter Supino, an analyst with a company called Wolfe Research, got Verizon CEO Hans Vestberg to say that the carrier will continue to reduce the workforce although the size of these cuts was not addressed by the executive. Vestberg told the analyst, ""The headcount – we have been very, very good, and it's going down all the time. So we have been very efficient in managing our resources." Data computed by Light Reading shows just how efficient Verizon has been. For example, when Verizon had a headcount of 183,000 in 2012, it generated approximately $116 billion in revenue from its telecom businesses including mobile and fixed-line. When the curtain dropped on 2024, Verizon had fewer than 100,000 employees while the top line had grown to $134.8 billion. Verizon CEO Hans Vestberg. | Image credit-Verizon Supino might have asked Vestberg about Verizon 's hiring plans because of a slight increase in the headcount last quarter sequentially. But Vestberg's response was to indicate that Verizon is still in cost-cutting mode; even though the carrier's workforce rose from 99,400 at the end of March to 100,000 at the end of June, the headcount year-over-year was still 3.7% lower. Analysts like Supino love to see the companies they follow cut the workforce since it quickly lower costs. One of the reasons not to expect Verizon to go on a hiring binge is the use of AI. Verizon has just started to bring AI into its workforce with the carrier telling the SEC in its last annual report that "We are using AI in our network deployment and maintenance as well as our customer and employee support services." Verizon CFO Tony Skiadas said, "We continue to take cost out, whether it's AI, whether it's network. Whether it's IT platform consolidation or real estate, we're continuing to push cost out of the business." Current Verizon employees might be very worried about how hard the carrier is going to push. With the $20 billion acquisition of broadband provider Frontier Communications about to close soon, Verizon has discussed synergies that it hopes will result in annual cost reductions of $500 million of more annually. The savings come from eliminating duplicate operations and jobs. Some of the jobs lost will come from the Frontier side, which is not such a shock considering that the company has laid off 5,300 people over the last four years reducing its headcount by 29% over those years. That Verizon is more efficient now cannot be denied. In 2012, a year we discussed earlier in this article, Verizon took in $631,000 in revenue per employee. This has risen to $1.35 million in revenue generated by each Verizon employee. While many believe that AI is bringing these efficiencies to the nation's largest wireless carrier, Verizon disagrees. Verizon says that there are too many risks involved in using AI to replace human employees. In its latest annual report filed with the SEC, Verizon said that, "There are technological, regulatory, ethical and other risks involved in deploying and using AI, particularly generative AI models. There can be no assurance that the usage of AI will meaningfully enhance our products or services or be beneficial to our business, including our efficiency or profitability." Verizon isn't the only U.S. carrier cutting its workforce. AT&T has eliminated 139,000 jobs between 2017 and 2025, while Verizon has cut 84,000 since 2012. If it isn't the use of AI allowing the carriers to hand out pink slips like never before, it must mean that companies like Verizon and AT&T have truly discovered a way to run their businesses with smaller headcounts. And based on what Verizon 's CEO says, the job cuts will continue. The big question is, will the business continue to grow? Switch to a 2-month Total 5G or 5G+ plan with Total Wireless and score this foldable deal. We may earn a commission if you make a purchase Check Out The Offer
Miami Herald
18 hours ago
- Business
- Miami Herald
Verizon hopes a new tactic will fix fleeing customer problem
Verizon (VZ) , the largest mobile network in the U.S., is continuing to see large numbers of customers cut the cord on phone service, despite recent efforts to keep them from leaving. In its latest earnings report, Verizon revealed that while it added about 300,000 new phone and internet customers during the second quarter of 2025, its wireless postpaid phone churn (the number of customers who ended phone service) remained at 0.9%, compared to the previous quarter. Don't miss the move: Subscribe to TheStreet's free daily newsletter The continued loss of customers comes after Verizon hiked the monthly rates for myPlan and New Verizon Plan accounts in January. Related: T-Mobile announces generous offer for conflicted customers It also increased the monthly price of its Verizon Mobile Protect Multi-Device plan and Verizon Mobile Secure Multi-Device plan by $8 in March. To win back customers frustrated with price hikes, Verizon announced a new three-year price lock guarantee earlier this year. It also reportedly began offering select customers free phone lines in March, and last month, it announced a new bundle in which customers with a myPlan mobile account can obtain a smartphone, tablet, and smartwatch when they trade in an eligible phone. Image source: Morris/Bloomberg via Getty Images During an earnings call on July 21, Verizon CEO Hans Vestberg said that elevated promotional activity from competitors and other factors contributed to the continued loss of customers. "The wireless market remains competitive, and we continue to take a strategic approach," said Vestberg. "As expected, postpaid churn remained elevated this quarter, reflecting the lingering effects of our pricing actions and ongoing pressure from federal government accounts." Verizon's top competitors, such as T-Mobile and AT&T have recently been ramping up generous perks and trade-in offers to attract new customers. For example, earlier this month, T-Mobile began offering customers a free DoorDash subscription (DashPass) through its T-Life app. Last month, AT&T introduced a new low-priced phone plan for customers who are 55 years old and up. During the call, Verizon Chief Financial Officer Tony Skiadas emphasized that the company is doubling down on improving its customers' "loyalty and retention" by providing them with more personalized support and value. "We have taken a series of actions to address our elevated churn," said Skiadas. "On June 24th, we launched initiatives designed to improve the customer experience, including leveraging AI for more personalized support. In addition, we continue to enhance our value proposition and build customer loyalty through the best value guarantee. We provide exclusive access to the best events and experiences, and our Refresh app helps customers maximize the value of their plans." Related: Verizon's move to slow down fleeing customers raises alarm bells Vesterg said Verizon's recent decision to use artificial intelligence for customer support and extend its customer service hours to 24/7 allows its employees to follow a request or complaint from customers "all the way," addressing a major pain point. He also said that since 93% of the U.S. population is less than 30 minutes away from a Verizon store, the company will also focus on leveraging its locations to provide more support and help to customers. "We leverage all the assets and all our employees to see that we're treating our customer better," said Vestberg. "And I think it's an area we can excel in." The increased focus on customer loyalty and retention comes as Verizon and other phone carriers face increased competition from cable companies, which have surprisingly generated an increased number of phone customers this year. Cable giants have recently been offering customers bundle options on TV, mobile, and internet, allowing them to save money on these services. More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersAT&T makes generous offer to older customers According to a recent report from MoffettNathanson, Spectrum, Comcast, and Altice USA added 886,000 new phone customers during the first three months of 2025, up from the 804,000 they added during the same time period last year. It is no surprise that customers are flocking to cable companies to take advantage of discounted phone services since phone bills increased nationwide last year. According to a recent report from Doxo, the average amount of money 94% of Americans spent on phone bills per month last year is $121, a 2% increase from what they spent monthly in 2023. Related: Comcast has a harsh warning for customers The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
a day ago
- Business
- Yahoo
Verizon Beats on 2Q Revenue, Raises Profit Outlook
Verizon surpassed analysts' estimates for second-quarter revenue and raised its profit outlook, buoyed by wireless price increases and recent tax legislation. Verizon CEO Hans Vestberg discusses the results on "Bloomberg Open Interest." Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Verizon Q2 earnings report surprises with remarks on tax reform
Verizon Q2 earnings report surprises with remarks on tax reform originally appeared on TheStreet. The legendary musical "Oklahoma!" opens with the classic song "Oh, What a Beautiful Morning." Verizon () was having a beautiful morning of its own on July 21, thanks in part to what President Donald Trump called the "One Big Beautiful Bill," which he'd signed into law on July 4. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 The telecom-services giant's shares were climbing 4.5% at last check after the company beat Wall Street's second-quarter earnings expectations. Hans Vestberg, Verizon's chairman and CEO, cited the recently passed bill during the company's earnings call. "Clearly, the tax reform is helping us to get faster to the priorities we have," he told analysts. "So we feel good about that." Among other features, the tax reform enables companies to immediately deduct the cost of new manufacturing plants. Verizon pays the highest cash taxes among major U.S. telecom companies, CNBC reported, citing Wells Fargo analysts, who said the tax law will provide a significant financial boost to the industry. Verizon CFO cites tax reform, raises guidance "The second quarter demonstrated our ability to deliver strong financial results even in the period of elevated promotional activity and broad economic uncertainty," Verizon Chief Financial Officer Anthony Skiadas said. "Our strong operational execution in the first half of the year, coupled with favorable tax reform, gives us the confidence to increase our guidance for the full year." Verizon lifted its 2025 outlook for free cash flow to a range of $19.5 billion to $20.5 billion, driven by an estimated benefit of $1.5 billion to $2 billion from the tax legislation as well 'as the disciplined operational execution that drove our strong adjusted Ebitda and free cash flow performance" in the first half. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time) Veteran portfolio manager raises eyebrows with latest Meta Platforms move Google plans major AI shift after Meta's surprising $14 billion move "This past quarter, we achieved strong sales focusing on high-quality customers without overspending for growth," he said. "Even with public sector challenges and ongoing consumer postpaid phone churn pressure, we maintained our financial discipline." Churn is the rate at which customers switch service providers. Skiadas said that last month Verizon launched initiatives designed to improve the customer experience, including leveraging artificial intelligence for more personalized support. Wireless-service revenue rose 2.2% to $20.9 billion, the company said, while wireless equipment revenue totaled $6.3 billion, up 25.2%. "I think the whole industry is up," Vestberg said, adding that the company was "very encouraged about what the team is doing and how they are working on the loyalty and retention of our customers." He noted that AI Connect, the company's suite of products for businesses to deploy AI workloads at scale, is "generating strong interest." "Our sales funnel has nearly doubled to $2 billion since launch earlier in the year," Vestberg said. 'This growth highlights a surging demand for high-bandwidth fiber capacity and diverse routes, both LIP and DOC fiber, to serve different customer needs.' "As AI transitions from centralized training to widespread real-time applications, compute power at the network edge becomes essential," he added. Verizon CEO points to AI transitions Verizon shares are up nearly 7% this year and up 2.6% from a year May the Federal Communications Commission approved Verizon's $20 billion deal to acquire fiber-optic internet provider Frontier Communications after the company agreed to end its diversity, equity and inclusion programs. "We're encouraged by Frontier's performance and look forward to closing the transaction to further accelerate our fiber expansion," Vestberg said. The deal is expected to close early next year. Goldman Sachs analyst James Schneider said he expected Verizon's stock to hold its gains following a quarter in which headline financial metrics were solid,, according to The Fly. Schneider said VZ's wireless trends were better than feared, even as management didn't reiterate its guidance for improving net-subscriber-addition metrics. Given that the company raised guidance when Wall Street expected a reiteration, the analyst says the stock could outperform in the short term since it believes investors were negatively positioned given their expectations for slower growth. Schneider called encouraging Verizon's result in earnings before interest, taxes, depreciation and amortization, and its free cash flow. On the negative side, the wireless environment remains competitive, and the broadband market appears relatively weak overall, the investment firm said. Goldman Sachs has a buy rating on VZ shares and a $52 price Q2 earnings report surprises with remarks on tax reform first appeared on TheStreet on Jul 21, 2025 This story was originally reported by TheStreet on Jul 21, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
