Where does the money go?

Discussion in 'Off Topic' started by dafoxs, Jan 18, 2009.

  1. dafoxs

    dafoxs New Member

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    Where does the money go?

    Just saw a commercial for ATT or verizon. They claim they have 80 million people with them. Let's say the average bill is 50 a month. That is 4 billion a month (is that right?). that is 48 billion a year. What do they do with all that coin?
  2. ninjaap

    ninjaap Moderator

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    That was the verizon commercial.

    Wow! You're right...
  3. Boycan

    Boycan New Member

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    New and cutting edge technologies :) :)
  4. PacoJr67

    PacoJr67 Active Member

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    Verizon generally invests about 4 billion a year for improving the network
  5. dafoxs

    dafoxs New Member

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    I can do it for half that.
  6. ninjaap

    ninjaap Moderator

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    And the other 40+ billion goes to...???
  7. PacoJr67

    PacoJr67 Active Member

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    dunno, that 4 billion figure was from when they had only 50 million customers, you figure they also need to pay their employees
  8. mike250rs

    mike250rs New Member

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    they spend a fair amout in propaganda....
  9. fr4nk1yn

    fr4nk1yn New Member

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    It's mind boggling how all these companies are posting billions of dollar losses while taking in billions.

    I wondered the same about Sprint.

    Improving the network, subsidizing phones, paying 3rd party retailers commissions(?), Sales people, instore techs and phone CS.

    So we have an estimate of 4billion a year for the network.
    Subsidizing the phones seems like quite a bit, although they do make it back in the long run.
    Sales commissions?
    How many stores do they have?
    What's the ratio of CS to customers?
    I started adding this up ):
  10. dafoxs

    dafoxs New Member

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    thats 48 billion just for the phone bills, not counting price of phones and everything else they sell. Also thats only mobile phones, what about landlines.
  11. PacoJr67

    PacoJr67 Active Member

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    landlines are a seperate division, the costs and profits are seperate too
  12. fr4nk1yn

    fr4nk1yn New Member

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    Don't they lose money on the actual phone sale?
  13. softspirits

    softspirits Guest

    Of course salaries come right off the top. Easy to post a loss when you make one million dollars and pay the board of directors 900,000. :)
  14. Tech.erella

    Tech.erella New Member

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    Prostitutes & speed
  15. mike250rs

    mike250rs New Member

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    we weren't asking where your money goes.....



    a fair share does go into payroll and maintaining the stores & equipment.
  16. Vazguard

    Vazguard Active Member

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    From the business side (business student here), VZW has some of its 10-k annual reports up on its site, but the latest is 2005-6. Looking at it, that year total operating revenue was a little over 32 billion. Of that, 6 billion was net income. Costs include costs of service, equipment (along with depreciation and amortization), and of course, administrative (which is that largest cost).
  17. ninjaap

    ninjaap Moderator

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    Wahahahaha!!!!!
  18. dafoxs

    dafoxs New Member

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    but at at least 36 billion revenue, you think they would have a real person answer the phones or at least someone that you can understand, maybe don't use headsets. I hate talking to people that sound like a robot.
  19. ParaCAD

    ParaCAD New Member

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    Its ashame none of those billions are put toward improving MY network. All i ask is for 3G in my area.
  20. Tech.erella

    Tech.erella New Member

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    Ha! Classic..........

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