Tomahawk, WI 04/23/2014 (Basicsmedia) – Verizon Communications Inc. (NYSE:VZ) is a long-term play and investors looking to buy into a company by buying its stock should consider Verizon stock.

For the largest telecom company in the U.S., the investment into building a future ready 4G LTE network will start paying off soon and after its buy out of Vodafone Group Plc (ADR) (NASDAQ:VOD)’s 45% stake in Verizon Wireless for a massive $130 billion, it stands to add 10% to its earnings which would have gone to Verizon previously.

The best 4G LTE network in the country is now available to 97% of the population or 305 million people.

Financial Picture

Verizon Communications Inc. (NYSE:VZ)’s FY2013 increased by 4.1% to reach $120.6 billion while wireless service revenue increased by 6.8% and wireline revenue declined by 1.5%. About one-third Verizon customers do not use smartphones at present — they offer an opportunity for Verizon to push smartphones and increased data usage leading to higher revenues for Verizon.

Verizon Communications Inc. (NYSE:VZ)’s revenues are projected to rise by small amounts — 3.8% in 2014 and 3% in 2015. This, while not impressive, is better than that of its great rival AT&T Inc. (NYSE:T) whose revenue will only increase by 2.6% in 2014 and 1.5% in 2015.

With data usage guaranteed to keep growing — 2 exabytes per month in 2013 to around 16 exabytes a month in 2018 — and 4G to make up 51% of that data by 2018, Verizon with its superior 4G LTE services and the best coverage in the country should make tons of cash in profits in the coming years.

Challengers on The Horizon

It’s not that Verizon’s journey will be smooth. Already, competitors like T-Mobile US Inc (NYSE:TMUS), AT&T Inc. (NYSE:T) and others are snapping at the beats. To take them on and pay back in their own language (as it were), Verizon Communications Inc. (NYSE:VZ) announced discounts effective from April 17 to customers on the More Everything plan. Users will get a $10 and $25 discount for adding a smartphone with data allowance of less than 8 GB and less than 10 GB respectively.

For a family of four, this offer can translate into big savings of up to $100 per month. Customers only need to be aware of the ‘best’ tariff and data plan before they make their choices.

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