NEW YORK (CNNMoney) — Verizon on Friday said it is making progress in getting its cellular service back online for customers impacted by Superstorm Sandy, but the repair work may take a chunk out of its fourth-quarter earnings.
In a regulatory filing, the company said it is directing its resources towards powering up cell towers and rebuilding its network, “which may take some time.” Verizon said it is not yet able to estimate how much impact the storm will have on operating profit, “but we expect that it could be significant.”
The nation’s largest wireless carrier said 96% of its towers in Sandy-impacted areas are operational, up from 94% on Wednesday. But getting the remaining towers online will take a tremendous effort.
“Unfortunately, the extent of the storm damage — including lingering power outages and inaccessible roadways — in harder-hit areas like New Jersey and the New York City metro area makes full restoration a marathon and not a sprint,” Bob Mudge, president of Verizon’s consumer division, said in a prepared statement. “We ask for customers’ patience and understanding.”
Verizon isn’t the only carrier that got nailed. The Federal Communications Commission said Thursday that 19% of cell sites in the core area affected by the storm — 158 counties across 10 states, from Virginia all the way up to Massachusetts — remained non-operational. That’s an improvement from 25% earlier in the week, but wireless companies still have “much work to be done,” FCC Chairman Julius Genachowski said.
Sprint appears to be the most damaged of the three major national carriers. In Massachusetts, New Hampshire, Pennsylvania and Rhode Island, the Sprint Network is more than 90% operational, the company said. But in the harder-hit areas, including New York, New Jersey and Connecticut, Sprint’s network is only around 80% functional, and just 75% of its New York City towers are online.
AT&T said the “vast majority” of its towers are back online, but it continues working to restore service in areas with significant damage and power outages.
In a rare show of cooperation in the wireless industry, AT&T and T-Mobile opted to allow customers in storm-affected areas to roam on one another’s networks free of charge. The two carriers’ networks are relatively compatible, which makes such a move possible.
All carriers noted that they are making efforts to reopen retail stores, where customers can charge phones. For those without service, many stores are allowing customers to make free landline calls.
By David Goldman
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