Verizon Communication (NYSE:VZ) Ready To Roll After Getting # 1 Rating On Its Wireless Services

Verizon Communication (NYSE:VZ) has been awarded with the highest wireless network ratings by RootMetrics during the first half of the year 2014. It is important to note here that it is the second time in a row that the company has been presented with this award. Other competing companies, which managed to secure the second, third and fourth position were AT&T, T-Mobile and Sprint respectively. The ratings were given keeping in view different factors, namely, data performance rate, speed, reliability and call performance.

Verizon Communication (NYSE:VZ) managed to get 81.6 points whereas the company next to it gained 79.5 points.

Analysts are of the view that the number 1 rating secured by Verizon Communication (NYSE:VZ) will help the company in gaining more revenue and business as wireless segment of the company makes up around 70 percent of the total revenues that the company makes annually.

The company had a churn rate of 0.91 percent last year; churn rate is the turnover of the company’s customers. AT&T had a churn rate of 1.08 percent. The churn rate of Verizon Communication increased slightly during the third quarter of the year 2014 and crossed 1 percent.

Although churn rate does not necessarily indicate the satisfaction of the customers, but it does affect the business of the company and hence, it is important to consider it.

According to Michael Hodel, in his latest research note, Verizon Communication (NYSE:VZ) enjoys customer loyalties due to the reputation that it has built up over the years. Customers choose and stick to a network based on its reputation and ratings. So, chances are that the company will see an increase in its business over the next few quarters.

During the last quarter of the fiscal year 2013, Verizon Communication (NYSE:VZ) had an average revenue per user (APRU) of $55.46. The company has managed to keep the average revenue steady; for its second quarter of the year 2014, the company has reported an AVPU of $55.42.

The company has seen an increase of 3.5 percent in its average revenue per account during the last fiscal year. The main reason for this increase is company’s More Everyday Data Plans. According to reports, this data plan is responsible for bringing in almost 50 percent of the company’s customers. When customers use more data, they are likely to activate higher data packages, which ultimately mean that the company gets more money.

The customers who are more likely to activate high data packages look for a strong network; by managing to get the number 1 rating on its wireless services, Verizon Communication (NYSE:VZ) has improved its chances of getting more higher data users.

Verizon Communication (NYSE:VZ), on the last trading day, October 24, 2014, started its stocks at a price of $48.22 and closed at an increased price of $48.77, after hitting the highest figures of $49.11. The company has a market capitalization of $202.4 billion with a price to earnings (P/E) ratio of 10.12. As far as the dividend yield of the company’s stocks is concerned, the figures are recorded to be around 4.51 percent.