Verizon: Wireless, Internet, TV and Phone Services
Get Samsung Galaxy S23+ on us.
With select trade-in and Unlimited Plus plan. Plus, $200 when you switch.
Hello Yellow. Get iPhone 14 Plus on us.
With Unlimited Plus plan. Plus, $200 when you switch. Online only.
Check now if you can get Verizon Home Internet.
With Auto Pay and select 5G mobile plans.
Price guarantee:</strong> Price guarantee for 2-4 years, depending on internet plan. For new Verizon Home Internet (“VHI”) households who have not subscribed to a VHI service within the last 90 days. Applies only to the then-current base monthly rate exclusive of any other charges, such as equipment charges, discounts or promotions, including the FCC’s Affordable Connectivity Program (ACP) and the Verizon Forward Program. ” data-tooltip-type=”icon” data-tooltip-label=”see details”>
Shop, manage and save on the subscriptions you already love.
From entertainment to lifestyle subscriptions and much more.
Military families
deserve our best.
We’re proud to offer military and veteran discounts. Plus, employment opportunities.
Get $1,100 off the first-ever Google Pixel Fold.
When you switch. With select trade-in and Unlimited Plus plan.
Get 15% off Google Pixel Fold cases and screen protectors.
Certified Pre-Owned. Certified peace of mind.
Shop our wide selection of fully tested and inspected devices, with Verizon support when you need it.
Try the network America relies on, for free.
Keep your phone, number and current carrier. Terms apply.
Get Samsung Galaxy S23+ on us.
With select trade-in and Unlimited Plus plan. Plus, $200 when you switch.
Hello Yellow. Get iPhone 14 Plus on us.
With Unlimited Plus plan. Plus, $200 when you switch. Online only.
Check now if you can get Verizon Home Internet.
With Auto Pay and select 5G mobile plans.
Price guarantee:</strong> Price guarantee for 2-4 years, depending on internet plan. For new Verizon Home Internet (“VHI”) households who have not subscribed to a VHI service within the last 90 days. Applies only to the then-current base monthly rate exclusive of any other charges, such as equipment charges, discounts or promotions, including the FCC’s Affordable Connectivity Program (ACP) and the Verizon Forward Program.
” data-tooltip-type=”icon” data-tooltip-label=”see details”>
Shop, manage and save on the subscriptions you already love.
From entertainment to lifestyle subscriptions and much more.
Military families
deserve our best.
We’re proud to offer military and veteran discounts. Plus, employment opportunities.
Get $1,100 off the first-ever Google Pixel Fold.
When you switch. With select trade-in and Unlimited Plus plan.
Get 15% off Google Pixel Fold cases and screen protectors.
Certified Pre-Owned. Certified peace of mind.
Shop our wide selection of fully tested and inspected devices, with Verizon support when you need it.
Try the network America relies on, for free.
Keep your phone, number and current carrier. Terms apply.
How to pay my Verizon Wireless bill over the phone?
Paying your Verizon Wireless bill can be a hassle, but it doesn’t have to be. With a few easy steps, you can pay your bill over the phone quickly and easily. Here’s what you need to do:
Step 1: Call the Verizon Wireless Bill Payment Line
The first step is to call the Verizon Wireless bill payment line at 800-922-0204. This is the number for the automated system that allows you to pay your bill over the phone. You will be greeted by an automated voice that will ask you to enter your account number. Enter your 10-digit account number followed by the pound (#) key.
Step 2: Choose Your Payment Option
You will then be asked to choose a payment option. You can choose to pay with a credit card, debit card, or e-check.
Make your selection and then enter the appropriate information for your payment option. You will be asked to enter the card number, expiration date, and security code. For e-check payments, you will be asked for your bank routing number and checking account number.
Step 3: Confirm Your Payment
Once your payment information has been entered, you will be asked to confirm the amount and date of your payment. Make sure all of the information is correct and then press “1” to confirm. You will then be given a confirmation number that you can use to track your payment.
Step 4: Hang Up the Phone
Once you have received your confirmation number, you can hang up the phone. Your payment will be processed automatically, and you will receive confirmation of your payment via email or text message. That’s all there is to it!
Paying your Verizon Wireless bill over the phone is an easy and convenient way to stay on top of your monthly payments. Whether you have an account with the company or you’re just looking to make a one-time payment, it’s quick and easy to do so.
Here’s what you need to know about making payments to your Verizon Wireless account over the phone.
Step 1: Call the Verizon Wireless Payment Line
The first step in making a payment over the phone is to call the Verizon Wireless Payment Line. This line is open from 8am to 11pm EST, seven days a week. To reach the line, call 1-800-VERIZON (1-800-837-4966). When you call the line, you will be asked to provide some basic information about yourself and your account.
Step 2: Provide Your Account Information
Once you’ve reached the payment line, you will be asked to provide some information about your account. This includes your account number, the last four digits of your Social Security number, and your address. You will also be asked to provide the payment amount, as well as the method of payment. Accepted forms of payment include credit and debit cards, as well as electronic check.
Step 3: Confirm the Payment Details
Once the payment details have been entered, you will be asked to confirm that all of the information is correct.
Once you’ve confirmed the details, the payment will be processed and you will receive a confirmation number. Keep this number for your records, as it will be needed if you ever need to dispute a payment.
Step 4: Check Your Statement
Once the payment has been processed, you will receive a confirmation email. You should also check your statement to make sure that the payment went through. If you have any questions, you can always call the Verizon Wireless Payment Line for assistance.
Paying your Verizon Wireless bill over the phone is a quick and easy way to stay on top of your monthly payments. Just make sure to have your account information on hand, and you’ll be able to make a payment in no time.
Paying your Verizon Wireless bill can be a stressful and time-consuming task, especially if you don’t have the time to visit a payment center. Fortunately, there is an easy and convenient way to pay your bill over the phone! All you need is your account number and a payment method.
Here’s how to do it:
Step 1: Call the Verizon Customer Service Number
The first step in paying your bill over the phone is to call the Verizon customer service number. This number can be found on the back of your bill or on the Verizon Wireless website. When you call, you will be connected with a customer service representative who will help you make your payment.
Step 2: Provide Your Account Information
Once you are connected with a customer service representative, you will need to provide them with your account information. This includes your account number, billing address, and payment method. Make sure to have this information readily available before you make the call.
Step 3: Confirm Your Payment
Once you have provided your account information, the customer service representative will ask you to confirm your payment. Make sure to double-check that all the information you provided is correct before you confirm. Once you have confirmed your payment, you will receive a confirmation email or text message with details about your payment.
Step 4: Make Your Payment
Once you have confirmed your payment, the customer service representative will process your payment. You will then be asked to provide your payment method information. Once your payment is processed, you will receive a confirmation email or text message with details about your payment.
Paying your Verizon Wireless bill over the phone is a quick and easy way to get your bill paid on time. All you need is your account information and a payment method. With just a few simple steps, you can pay your bill quickly and easily.
ZigBee wireless networks. Part 1 [Introductory] / Sudo Null IT News
Now everyone is talking about the concept of IoT (“Internet of Things”). “Smart” household appliances appear that can connect to the network (Bluetooth / Wi-Fi) via a wireless interface and start sending notifications that the task of washing / cooking / boiling water is completed and it would be nice to do something about it. Most of these “smart” devices are powered directly from the mains.
But what if you want to receive information from a wireless thermometer and still not change the battery every week? Or have a wireless switch with a small battery that doesn’t require chasing the walls? And it would be nice to combine such devices into a single distributed network that can be controlled remotely and which itself, based on the readings of sensors / detectors / counters, could make some decisions.
ZigBee wireless technology was created specifically for solving such problems, which we will start talking about.
There are a large number of wireless technologies, each with its own characteristics. The table below lists the wireless communication protocols for the 2.4 GHz frequency.
Popular Wireless Comparison Chart
- Wi-Fi Technology
Wi-Fi technology was created as a replacement for the wired Ethernet interface. Therefore, this technology offers high data transfer rates, but does not allow the development of nodes that operate for a long time from low-capacity power supplies due to high power consumption.
- Bluetooth technology
Bluetooth technology with the advent of the 4.0 standard (Bluetooth Smart or Bluetooth Low Energy) has become much more attractive for developers of wearable electronics, as power consumption has been reduced significantly compared to previous versions[1]. But if the task is to build a wireless low-power system that will cover several rooms or even buildings, this technology will not work, since only network topology is supported.0012 star “. The same is true for Wi-Fi. - ZigBee and Thread Technology
ZigBee and Thread technologies were originally developed to create reliable distributed networks of sensors and control devices with low data transfer rates. These technologies support the network topology “ mesh “, sleeping and mobile nodes, as well as nodes that provide relaying and self-healing algorithms. The table indicates the speed of 250 kbps – this is the maximum network bandwidth. The useful speed will be in the order of 30-40 kbps within neighboring nodes and 5-25 kbps when using relay. The main difference between Thread technology and ZigBee is that it adds support for the IP protocol, which makes it easier to integrate Thread networks with network applications. We will talk about the features of Thread technology another time.
The useful speed will be in the order of 30-40 kbps within neighboring nodes and 5-25 kbps when using relay. The main difference between Thread technology and ZigBee is that it adds support for the IP protocol, which makes it easier to integrate Thread networks with network applications. We will talk about the features of Thread technology another time.
The supported network topologies were mentioned in the previous chapter, but the specifics were not mentioned. Consider this example:
“Star” vs. “Mesh”
In Bluetooth and Wi-Fi networks, network communication occurs through a central gateway. And if it fails, then data exchange will become impossible.
In addition, individual nodes may be left without communication if an obstacle suddenly arises in the path of the radio signal.
In ZigBee and Thread networks, communication reliability is increased by having redundant links between devices. All devices that do not go into sleep mode act as routers , which are responsible for routing network traffic, choosing the best route, and relaying packets.
Even if the device that acted as the network organizer fails, the ZigBee network will continue to function. The occurrence of interference or obstacles, as well as the failure of any of the routers, is not critical due to the presence of redundant connections. Therefore, with the introduction of additional nodes that have stationary power and can perform the tasks of a router, the network becomes more reliable.
Now let’s dwell on the structure of the ZigBee network itself and the types of devices that can be in it.
Typical ZigBee network structure
Coordinator is the node that organized the network. It is he who chooses the network security policy, allows or prohibits the connection of new devices to the network, and also, in the presence of radio interference, initiates the process of transferring all devices on the network to another frequency channel.
Router is a node that has stationary power and therefore can constantly participate in the network.
The coordinator is also a router. This type of node is responsible for routing network traffic. Routers constantly maintain special routing tables that are used to plot the best route and find a new one if any device suddenly fails. For example, routers in a ZigBee network can be smart plugs, lighting control units, or any other device that has a power connection.
End device is a device that connects to the network through a parent node – a router or coordinator – and does not participate in traffic routing. All communication with the network for them is limited to transmitting packets to the “parent” node or reading incoming data from it. The “parent” for such devices can be any router or coordinator. End devices are in sleep mode most of the time and usually send a control or information message only on a specific event (pressing a switch button, opening a window or door). This allows them to store the energy of the built-in power supply for a long time. An example of end devices in ZigBee networks can be wireless switches that control the operation of lamps and are powered by batteries, water leakage sensors, door opening / closing sensors.
It is worth saying that the end devices are divided into 3 categories, each of which has its own characteristics, but about them in the next part.
Since the end devices are in sleep mode most of the time and wake up only to poll the parent node for messages for themselves or to transmit data, this saves battery power. Experimental measurements of power consumption for a sleeping end device based on the ETRX357 module, about which a little later, in various operating modes:
Wiring diagram for measuring current consumption0002 Power for the module was supplied through resistor R1 with a nominal value of 10 ohms. Two oscilloscope probes were connected before and after the resistor. After that, using the subtraction function on the oscilloscope, the voltage drop across the resistor was recorded. After that, using Ohm’s law, you can calculate the current consumption. In addition, since the time in active mode is fixed, you can find the charge, and only then the power expended in Joules.
Transmission of an encrypted packet 27 bytes long
The transfer cycle takes 7.5 ms, the energy consumption at a supply voltage of 3.3 V is 444.2 µJ.
A typical alkaline battery has a power reserve of ~10.8 kJ. This energy is enough to send 24 million such requests. If the sleeping node sends such a message every 10 seconds, then it will be 8640 requests per day. That is, theoretically, if you do not take into account the aging of the battery, its energy will be enough for ~ 2700 days = 7 years.
Poll parent node
In this mode, the sleeping device polls its parent node for an incoming message. If it is not present, then the sleeping node goes into power saving mode.
The transmission cycle takes 3.2 ms, the power consumption at a supply voltage of 3.3 V is 184 µJ.
A typical alkaline battery has a power reserve of ~10.8 kJ. This energy is enough to send 60 million such requests. If the sleeping node sends such a request every 10 seconds, then it will be 8640 requests per day.
That is, theoretically, if the aging of the battery is not taken into account, its energy will be enough for ~ 6940 days = 19 years.
“Great,” the reader will think. – another proprietary protocol with support for mesh topology. This is no surprise to anyone.” However, for all the years that ZigBee technology has existed, the ZigBee Alliance has done a lot of work to standardize not only the network layer, but also the application layer of the devices being developed[2]. There is a large ZigBee Cluster Library (ZCL) that describes over 200 devices, such as switches, lighting control units, an interface for connecting sensors, meters, and much more[3]. And for some types of systems (home automation systems, meter reading systems, etc.), special profiles have been developed that include a whole set of standard devices. They allow wireless nodes from different manufacturers to understand each other at the application level. A standard profile describes the standard commands and behaviors of a particular device, such as a climate control unit or a luminaire control unit.
What the different layers in the OSI network model are responsible for
An example of the interaction of devices with a standard profile
An example of how a lighting control system can be implemented using the standard cluster library. We will analyze the details another time, but for now it is enough to understand the following:
- the light bulb has a set of stored attributes (state – on / off; brightness level)0023
- the switch can send commands to change the available attributes of the light bulb
- when receiving a command, the light bulb assumes the specified state
The cluster library specifies which attributes and commands are mandatory for certain devices and which are optional. This allows you to implement a standard interface for interaction between ZigBee devices.
Radio module
For a quick start, when there is no desire or opportunity to deal with the ZigBee software stack, you should pay attention to the ETRX357 modules.
All modules have built-in firmware from the manufacturer, which allows you to work with analog and digital peripherals, as well as network functions, using a set of AT commands. To start working with the radio module, it is enough to connect the power lines and the TxD and RxD lines of the UART serial interface.
Example of AT commands
| Command | Description |
|---|---|
| AT+PANSCAN | Start scanning for ZigBee networks |
| AT+EN | Create network |
| AT+JN | Join the |
| AT+DASSL | Leave the network |
| AT + DASSR | Requesting a remote host to leave the network |
| ATSXX? | Read contents of SXX register |
The standard firmware also includes a number of functions that can be called upon interruption from the I / O port, timer / counter, or upon certain events – connecting to the network or initializing the radio module.
Example of available functions:
- I/O port 9 state switching0023
- Sending information to the data collection node about the status of 16 digital outputs of the radio module, digitized data from connected sensors and information about the level of supply voltage
- Switching to active mode or power saving mode
- Opening a “transparent channel” with another device on the network
A few words about the “transparent channel”. When switching to this mode, all information received via the UART interface to the radio module is transmitted to the UART interface of another radio module. This channel is bidirectional, and also inherits the advantages of ZigBee technology – if there are routers in the network, there will be no data loss in such a communication channel, since all packets of the “transparent channel” will be automatically relayed if necessary. Due to this, it is possible to organize a communication channel with a maximum range of several kilometers.
Software implementation of the ZigBee stack
If the standard firmware capabilities are not enough, then you can use the implementation of the ZigBee software stack from Silicon Labs – Ember ZNet PRO. Since the modules are based on the EM357 chip, the transition from standard firmware to developing your own application will only require the purchase of an ISA3 programmer-debugger, with which you can both do in-circuit debugging of the device and debug the application at the network level.
The figure on the right shows an example of how the data on the path of the package and its decryption are displayed.
To simplify the process of creating an application, an application builder is provided that, for the selected ZigBee device configuration, generates an application framework and creates functions in which the developer must add the required application logic.
All utilities are included in the Simplicity Studio software package, which also includes a demo version of the Ember ZNet PRO stack.
Therefore, you can download it right now and see how it works.
How to get started with the application generator
After you have downloaded and installed the Simplicity Studio package, check if the Wireless extension is installed.
We are interested in Wireless Products
Select Application Builder
Next, choose a framework. For ZigBee applications, this will be ZCL Application Framework v2. Important: must be checked to display demo embedded stacks.
Choose Internal Stack
After that, you can start working either with an empty application, or select one from the list of ready-made applications and study its structure.
Network Traffic Analyzer Getting Started Guide
After you have downloaded and installed the Simplicity Studio package, check if the Wireless extension is installed.
We are interested in the Wireless Products 9 package0003
After that, you can go to the Network Analyzer utility and select any available demo recording of network activity.
Result
I hope that this article helped you understand the main features of ZigBee wireless technology and you can figure out in which applications you can use it. The technology itself is completely open and all its specifications are available for download from the ZigBee Alliance website. And the Cluster Standard Library is a real language of communication between devices that surround us every day: home automation devices, security systems, sensor equipment and much more.
If you have any questions, send them to me by mail or write in the comments.
P.S. For those who could not master the text, there is an opportunity to watch introductory videos using ZigBee technology.
Contents
- Introduction
- Network technologies for wireless communications
- Comparison of network topologies
- Typical ZigBee network structure
- Development of standard ZigBee devices
- Where to start?
References
- Wikipedia article – Bluetooth Low Energy
- ZigBee Alliance Site Standardization Description
- ZigBee Cluster Library
- ETRX357 module datasheet
- ETRX357 AT command list
- ZigBee wireless networks. Part 1 [Introductory]
- ZigBee wireless networks. Part 2 [Working with ETRX35X radios]
Part 1 [Introductory] Review of Verizon Communications: investing in a global telecom operator
Verizon Communications (NYSE: VZ) is a global communications and technology leader operating in 4G and 5G wireless networks, broadband and fiber optics, video and advertising platforms, and the Internet of Things.
Vyacheslav Makarenko
private investor
Author profile
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Service in partnership with Tinkoff Investments. Quotes are updated every 15 minutes
About
Verizon’s history dates back to Bell Atlantic, which was formed as a result of the division of the AT&T monopolist in 1983. The company operates primarily in the United States. The company is headquartered in New York and employs more than 118,000 people.
Verizon is the largest wireless carrier in the US, with 142.8 million subscribers at the end of 2021.
The company is included in the list of the world’s largest Fortune 500 companies.
The company’s activities are carried out in two directions:
- Consumer segment – services and products of wireless and wired communication, targeted at the consumer under the Verizon brand, as well as other agreements. Includes such areas: services, wireless equipment. The share of the segment in 2021 was 71.1%.
- Business segment – wireless and wired communication services and products, including data, video and conferencing services, enterprise network solutions, security and managed network services, local and long distance voice services, and Internet of Things access.
Includes SMEs, Global Enterprises, Public Sector, Wholesale. The share of the segment in 2021 was 23.2%.
Revenue, million dollars
| 2020 | 2021 | Percentage change | Percentage share at the end of 2021 | |
|---|---|---|---|---|
| Consumer | 88,533 | 95,300 | 7. 6% |
71.1 % |
| Business | 30,962 | 31,042 | 0.3% | 23.2% |
| 9334 | 7722 | -17.3% | 5.7% | |
| Eliminations | -537 | -451 | -16% | — |
| Total | 128,292 | 133,613 | 4 ,1% | 100% |
Consumer
2020
88 533
2021 9 0003
95,300
Percentage change
7.6%
Percentage share at the end of 2021
71.1%
Business
2020
30,962
2021
31,042
9 0002 Percentage change
0%
Percentage share at the end of 2021
23.2%
Eliminations
2020
−537
2021
−451
Percent change
−16%
Percentage share at the end of 2021
—
2020
128,292
2021
133,613
Percentage change
4.
1%
Percentage share at the end of 2021
100%
EBITDA by segments for 2021
| EBITDA in million USD | EBITDA in percent | EBITDA margin | |
|---|---|---|---|
| Consumer | 41,634 | 84.7 % | 43.7% |
| Business | 7521 | 15.3% | 24.2% |
| Total | 49 155 | 100% |
Consumer
EBITDA in million dollars
41,634
EBITDA in percent
84.7%
EBITDA margin
43.7%
Business
EBITDA in millions of dollars
7521
EBITDA in percent
15.3%
EBITDA margin
24%
EBITDA in millions of dollars
49,155
EBITDA in percent
100%
EBITDA margin
36.78%
Source: financial 2021 financials
Financials
In 2021, Verizon’s revenue grew due to a 7.
6% increase in the consumer segment and a 0.3% increase in the business segment. Due to the growth in operating income, operating profit and margin increased. As a result, net profit grew by 23.27%, and FCF fell by 18.33% due to a decrease in operating cash flows by 5.33%, as well as an increase in capital expenditures by 11.51%. In general, we can state the recovery of the company’s performance after the crisis of 2020.
At the end of 2022, the company expects a 1-1.5% increase in revenue from services, and a 2-3% increase in adjusted EBITDA. Earnings per share — $5.40-$5.55 compared to $5.32 for 2021. Capital expenditures are $16.5-17.5 billion compared to $20.3 billion in 2021.
Financial indicators, million dollars
| 2017 | 2018 | 2019 | 2020 | ||
|---|---|---|---|---|---|
| Revenue | 16,039 | 30,101 | 19265 | 18348 | 22618 |
| FCF | 17681 | 8058 | 23,576 | 19,253 |
Revenue
2017
1 26034
2018
130,863
2019
131,868
2020
128,292
9000 2 2021
133,613
Operating profit
2017
27,414
2018
22,278
2019
30,378
2020
28 798
2021
32 448
Operating margin
2017
21.
75%
2018
17.02%
2019
23.04%
2020
22.45%
2021
2 4.29%
Net profit
2017
30,101
2018
16,039
2019
19,265
2020
18,348
2021
22 618
2017
8058
2018
2020
23,576 90,003 90,002 2021 90,003 90,002 19,253 90,003 90,002 Source: company financials 90,003 90,134 Balance sheet 90,135 90,002 Verizon’s assets grew mainly due to its wireless license from 96 to 147.6 billion dollars. Capital increased due to additionally paid-in capital from 60.4 to 71.9billion. The company increased the number of shares from 4.14 to 4.15 billion. Total debt increased due to an increase in long-term debt from $123.1 to $143.4 billion Net debt increased due to an increase in total debt and a decrease in cash and cash equivalents from $22.1 to $2.9 billion.
It should be noted that despite a significant increase in debt in recent years, the company has no problems servicing its debt obligations.
Interest coverage ratio increased to 9 in 2021.3× compared to 5.8× in 2017. Most of the company’s debt repayments are for the period after 2026.
At the end of 2021, the effective interest rate was 3.6%. A significant part of the debt portfolio consists of debt with a fixed interest rate, so changes in interest rates do not have a significant impact on the company’s interest payments. The company also plans to reduce debt in the coming years.
Balance sheet of the company, mln USD
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| Assets | 264 829 | 257 143 | 291 727 | 316 481 | 366 59 6 |
| Capital | 53,145 | 43,096 | 61,395 | 69,272 | 83,200 |
| General debt | 113,063 | 115,693 | 111,489 | 129,062 | 150,868 |
| Net debt 113,614 | 108,895 | 106,891 | 148,789 |
Assets
2017
257,143
2018
264,829
2019
291,727
2020
9000 2,316,481
2021
366,596
Capital
2017
43,096
2018
53,145
2019
61,395
20 20
69 272
2021
83 200
Total debt
2017
115 693 90 003
2018
113,063
2019
111,489
2020
129,062
2021
150,868
Net debt
2017
113,614
2018
110,318
2019
108,895
2020
106,891
2021
148,789
Source: company financials
Market
for the 5G market.
Today, Verizon, AT&T, T-Mobile are Tier 1 national wireless carriers, and together they control approximately 90% of the US wireless market. And at the current moment, based on the coverage area, the T-Mobile operator wins the race.
On the other hand, the coverage area does not yet guarantee the growth of the company’s financial performance. In terms of average revenue per user (ARPU), T-Mobile is the lowest, AT&T is the highest, and Verizon has a history of growth in this metric.
5G networks are projected to account for 26% of wireless service revenue in 2024. With fixed wireless, Verizon expects revenue growth from this segment to be at least 3% in 2022 and at least 4% starting in 2024.
Despite the growth towards 5G, the global wireless market is likely to be in a stagnant state, as evidenced by the experience of 4G adoption. Between 2012 and 2018, as 4G coverage grew from 4% to 61% worldwide, the size of the US wireless market grew by less than 1%.
With limited market potential, Verizon is betting on M&A deals.
And the latest deal is Tracfone, a prepaid mobile phone provider acquired for $6.25 billion in November 2021.
Verizon management expects to generate $1 billion in additional revenue and approximately $1 billion in cost synergies by 2025.
The company is also restructuring its business. In September, Verizon closed the $5 billion sale of Verizon Media Group to Apollo Global Management while retaining a minority stake.
As a result, in the coming years, we should not expect high growth rates of financial indicators from Verizon: we can expect increased competition for users, building an ecosystem, and optimizing costs.
5G coverage among operators. Source: PCMag Source: IBIS World Source: IBIS World
Competitor Comparison
Considering a company’s market situation, it’s reasonable to know how well a company performs compared to its closest competitors.
AT&T, T-Mobile, United States Cellular, Comcast Corp. were selected for comparison.
The growth rate of revenue will show us how successful the company is in its market, whether its services are in demand.
The ROE profitability ratio shows the financial return on the use of the company’s capital, allows you to evaluate the quality of work of financial managers.
As for Verizon’s multiples, the company looks overvalued compared to its closest peers, and neutral compared to the telecom services industry median.
Company comparison
| Revenue growth rate | ROE | ROIC − WACC | |
|---|---|---|---|
| 1.01% | 10.92% | 0% | |
| Verizon Communications | 1.17% | 28.52% | 4% |
| 14.56% | 4.46% 9015 6 | 0% | |
| United States Cellular Corp | 1 .16% | 3.42% | −3% |
| Comcast Corp | 6.61% | 14.69% | 0% 9015 6 |
Revenue growth rate
AT&T
1.01%
Verizon Communications
1.
17%
T-Mobile
14.56%
United States Cellular Corp
1.16%
Comcast Corp
6.61%
AT&T
10.92%
Verizon Communications
28.52%
T-Mobile
4.46%
United States Cellular Corp
3.42%
Comcast Corp
14.69%
ROIC − WACC
AT&T
0%
Verizon Communications
4%
T-Mobile
0%
United States Cellular Corp
−3%
Comcast Corp
0%
Source: GuruFocus
Company Multipliers
| P/E | P / BV | P / S | EV / EBITDA | |
|---|---|---|---|---|
| 5 2.44 | 1.51 | 8 | ||
| AT&T | 8.18 | 0.83 | 0.87 | 6.27 |
| T-Mobile | 54, 34 | 2.18 | 1.9 | 11.67 |
| United States Cellular Corporation | 18. 05 |
0.55 | 0.63 | 6.34 |
| Comcast Corporation 90 156 | 12.78 | 1.88 | 1.53 | 7 |
| Mean | 20.56 | 1.58 | 1.29 | 7.86 |
| Up/down potential | 117.36% 901 56 | −35.41% | −14.7% | −1.8% |
| Median telecommunications industry | 16.48 | 1.97 | 1.6 | 7.41 | Up/down potential | 74.21% | − 19.26% | 5.96% | −7.38% |
Verizon Communications
9.46
AT&T
8.18
T-Mobile
54.34 90 003
United States Cellular Corporation
18.05
Comcast Corporation
12.78
Median
20.56
Up/Down
117.36%
Telecommunications industry median
16.48
900 02 Up/down potential
74.
21%
P / BV
Verizon Communications
2.44
AT&T
0.83
T- Mobile
2.18
United States Cellular Corporation
0.55
Comcast Corporation
1.88
Average
1.58
Up/Down
−35.41%
Median Telecom Industry services
1.97
Up/down potential
−19.26%
Verizon Communications
1.51
AT&T
0.87
T-Mobile
1.9 900 03
United States Cellular Corporation
0.63
Comcast Corporation
1.53
Average
1.29
Upside/downside
−14.7%
Median telecom industry
1.6 900 03
Up/down potential
5.96%
EV / EBITDA
Verizon Communications
8
AT&T
6.27
T-Mobile
11.67
United States Cellular Corporation
6.34
Comcast Corporation
7
Average
7.
86
Up/Down
−1.8%
Median Telecommunications Industry
7.41
Up/down potential
−7.38%
Source: GuruFocus, Morningstar
DDM model
Considering that the analysis of multipliers did not give an unambiguous answer on the expediency of buying these shares, it was decided to create a simple DDM model based on discounting future dividends for 5 years to determine the fair share price. Data on the average monthly yield of the index of five- and ten-year US government bonds was used as the basis for the data on the risk-free rate.
It is worth noting that Beta Verizon is below 1, indicating that the company’s stock is less affected by the overall market trend.
When constructing a forecast of financial indicators, analysts’ forecasts, average growth rates of indicators, data on risk premiums were taken into account. The model is calculated with two discount rates and forecast prices to improve reliability.
As a result, the target share price calculated by this method is $70.5-77.7, the growth potential to current levels is 45-60%. To make a decision to buy shares using discount models, an upside potential of 20% is usually used. Accordingly, Verizon shares are included in this range and can be considered for purchases at current levels.
DDM model. Source: author’s calculations
Dividends and buyback program
In 2021, the company paid $10.4 billion in dividends, which generated a potential return of 4.85%. VZ stock is a classic dividend story: the company has been paying dividends continuously for 22 years. The dividend growth rate for 5 years was 1.67%, and the payout ratio did not exceed 55%.
The Company does not run buyback programs. However, management said it would consider this option once a net unsecured debt/adjusted EBITDA ratio of 2.25× has been reached. According to the results of the fourth quarter of 2021, the ratio was 2.8×. 92 021
37 90 020 Dividends per share
2017
$2.32
2018
2.37 $
2019
2.42 $
2020
2.47 $
2021 90 003
$2.52
Payout ratio
2017
59.55%
2018
30.22%
2019
62.28%
2020
55.94%
2021
47.42%
Potential dividend yield
2017
4.39%
2018
4.22%
2019
3.95%
2020
4.21%
2021
4.85%
Source: Morningstar
What is the result
At the end of 2021, Verizon showed an increase in profits and revenues and recovered after coronacrisis.