Verizon is a telecommunications company that started in the year 2000 due to the merger between Bell Atlantic and the telephone company GTE. The company soon become the largest local telephone company in the US. However, Verizon soon moved to the wireless communications business due to the shift in market trends.
Verizon entered the wireless communications market through various acquisitions. It runs its wireless network through its Verizon Wireless subsidiary. That means that this division is only responsible for the wireless network income for the company. Verizon also has other business ventures, such as its Wireline segment, which generate profits for it.
Key Highlight of the Verizon
Verizon is among the most profitable companies in the US. The company generated revenues of $131.868 million in 2019. IT was an increase of only 0.77% from the $130.863 billion it generated in 2018. Similarly, the company made a net income of $19.265 billion in net income in 2019, a significant increase of 24% from the $15.528 billion it made in 2018.
The US market constitutes the primary sources of revenues and income for Verizon. As mentioned, this income comes from various segments. Most prominently, it comes from the Wireless segment. After that, the Wireline segment also contributes to the profits and revenues that Verizon makes. Lastly, the company also operates in other markets through its multiple business ventures, which are profitable.
While having various business ventures has allowed Verizon to increase its customer count and profitability, it has also attracted significant competition. On top of that, Verizon also operates in markets outside the US. The local competition in countries where Verizon operates also poses a threat to its operations.
Verizon has numerous competitors, both large and small, in multiple markets. However, there are some competitors that pose a higher threat to Verizon and its profitability compared to others. Therefore, the top 10 Verizon competitors list includes the following names.
AT&T has always been one of the top competitors of Verizon. AT&T is the world’s largest communications network. The company was a subsidiary of Alexander Graham Bell’s Bell Telephone Company. Before becoming AT&T, the company was known as the Southwestern Bell Telephone Company. AT&T and Verizon have always been in active competition in the US market. Their competition has also expanded to markets outside the US.
The company provides products and services in over 175 countries. The primary income source for the company still is the US market. AT&T generated revenues of $181.2 billion in 2019. In comparison, Verizon only made sales of $131.8 billion. Similarly, the company employs 246,000 employees worldwide, while Verizon only employs 135,000.
AT&T and Verizon are in close competition in the communications market. It provides better prices and speeds but cannot match Verizon’s network coverage. Despite that, Verizon lags behind AT&T in all aspects.
T-Mobile is another company that is in direct competition with Verizon. The company, founded in 1995, competes with Verizon in several markets. However, with its merger with Sprint, T-Mobile has started posing a serious threat to Verizon’s market share. T-Mobile is an associate of the Deutsche Telekom company that has a 43% share in the company.
T-Mobile US, although a recent name in the US market, has had a significant impact on Verizon’s profitability. Although Verizon is unmatched in its coverage over the US, T-Mobile has better prices and speeds than customers prefer. T-Mobile also operates in various other markets, particularly in Europe. However, its primary competition with Verizon is in the US market.
Vodafone is another wireless communications industry giant that offers services in many countries. Founded in 1991, Vodafone has become the world’s second-largest mobile network after AT&T. Similarly, Vodafone is one of the primary competitors in the mobile network industry. For Verizon, Vodafone poses significant competition in the European market.
While both of these companies operate in different markets, they still compete with each other. Vodafone also owned stakes in Verizon until 2013. Although not a controlling stake, Vodafone still owned a significant holding in Verizon. Vodafone offers similar services and products as Verizon. These include mobile, fixed, and unified communications. However, Vodafone is also involved in many other markets.
Telefonica is another mobile network that competes with Verizon. The company, based in Madrid, is the biggest network in Spain. Originally established as Compañía Telefónica Nacional de España (CTNE), the company was renamed Telefonica in 1998. However, the company also operates in many other markets. These include over 20 countries in Europe and the Americas.
Telefonica doesn’t only have a single brand. It also operates other businesses such as O2, Vivo, and Movistar. The company competes with Verizon through its mobile network and communications segment. Both companies compete for corporate clients, which is one of the segments where Verizon operates. However, Telefonica and Verizon also partner in some markets.
5. China Mobile
China Mobile, founded in 1997, is the largest telecommunications service provider in China. The company operates in the same markets as Verizon, including wireline and wireless services. Similarly, the company also operates in other markets, such as Hong Kong, Canada, UK, Singapore, Japan, and others. Although not direct competitors in the US market, Verizon and China Mobile still have some overlaps.
China Mobile and Verizon are two of the biggest names in their respective markets. Both companies exceeded $100 billion in revenues in 2019. However, Verizon had higher revenues due to the market it operates in despite having fewer customers. Unlike some other companies mentioned above, Verizon and China Mobile are not in direct competition.
6. Cox Communications
Cox Communications, formed in 1962, is an American company that provides digital cable television, telecommunications, and home automation services. The company operates in the US market primarily. It is among the largest cable TV services providers in the US.
In terms of revenue and size, Cox Communications is nowhere near Verizon. However, the company still has a significant market presence in the US. Outside the US market, Cox Communications and Verizon do not have any competition. Verizon’s primary segment is its wireless segment, where Cox Communications does not work.
7. Cricket Wireless
Cricket Wireless is a company that operates in the telecommunication industry. Relatively new in the US market, it is nowhere near the size of Verizon or AT&T. However, it is a subsidiary of AT&T. Cricket Wireless provides voice, text, and mobile data services. The company uses its parent company’s network to do so. With Cricket Wireless, AT&T aims to cater to a specific market segment.
Although relatively new and small, Cricket Wireless is in direct competition with Verizon. Cricket Wireless primarily competes with Verizon in the wireless segment, which is Verizon’s primary revenue-generating market. For the markets that Cricket Wireless caters to, Verizon does not have a particular answer, which makes Cricket Wireless the primary name in a niche market.
Comcast Corporation is a global telecommunication and mass media industry in the US. The company provides various products, such as broadband, cable television, digital telephone, direct broadcast satellite, HDTV, home security systems, TV production, VoIP phone, internet, and much more. Similarly, Comcast is one of Verizon’s main competitors in the Wireline segment.
Due to the diverse range of products and services Comcast provides, the company caters to a wide range of customers. However, it also competes with Verizon in the broadband and internet market. Comcast’s brand is also highly recognizable and among one of the top names in the US. Due to its services in the telecommunications industry, Comcast poses a competitive threat to Verizon.
9. América Móvil
América Móvil is another big name in the mobile networks industry. The company provides services in approximately 25 countries in Latin American, Eastern, and Central Europe and even in the US. América Móvil is Mexico’s largest mobile operator and controls over 70% share in the market. In the US market, América Móvil does not pose a significant threat.
However, it still competes with Verizon on several fronts. Although Verizon had the opportunity to acquire América Móvil in 2014, the company refused to do so. Today, América Móvil is a top name in several markets. América Móvil generated $53.45 billion in revenues in 2019. However, that wasn’t even half of what Verizon made in the same year.
Century Link is another competitor of Verizon. The company, founded in 1930, got incorporated in 1068. The company offers its services over many markets, including North American, Latin American, Europe, Middle East, Africa, and the Asia Pacific. It generated revenues amounting to $22.4 billion in 2019, which is almost 17% of the $131.8 billion that Verizon made in the same year.
In terms of competition, CenturyLink does not pose a significant threat to Verizon’s overall business. However, in the internet market, CenturyLink has a decent market share. The company serves competition to Verizon’s Wireline segment. It has even served as Verizon’s agent in the Wireless segment.
Verizon is a top brand in the US and operates in the telecommunications market. The company has various business ventures and serves different segments. Due to its vast range of services and substantial size, Verizon also has many competitors. These include AT&T, T-Mobile, Vodafone, Telefonica, China Mobile, and various other names mentioned above.