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March 8, 2015

2 Reasons why Verizon's revenue from wireless was twice its wireline business

Statistic: Verizon Communications' revenue from wireline and wireless services from 2010 to 2013 (in billion U.S. dollars) | Statista

The chart shows the wireline and wireless  revenue for Verizon from 2010 to 2013
The revenue made by Verizon from its wireless services  is almost  twice as much from its wireline or landline services in US .The reasons why Verizon manages to get that kind of revenue mix has 2 components

a)due to the nature of the wireless  Industry in US ,along with its  own marketshare b) The Scarcity of Spectrum and the need to match demand with supply 

The wireless market in US  is intensely competitive, with the number of wireless subscriber connections (336 million) exceeding   the total population (316 million) and Verizon has the largest subscriber base in the U.S with around 32% in 2014. 

Along with demand  and supply constraints,  spectrum is scarce and  the demand for high speed wireless carriers with  4 5 times faster speeds than 3 G  Verizon has continued to invest  and build scale as ( Verizon was the first in US to deploy LTE )

The Fixed line business  consists of  home /Business land lines, leased lines,DSL, FiOS revenue  for  which demand supply constraints are not high nor can be scaled up rapidly.