Verizon could face up to $250M cost for worker strike, storms

If you’re not reaching, engaging, and monetizing customers on mobile, you’re likely losing them to someone else. Register now for the 8th annual MobileBeat, July 13-14, where the best and brightest will be exploring the latest strategies and tactics in the mobile space.

VerizonThe combined impact of Verizon‘s recent worker strike and major storms could end up costing the company up to $250 million, Reuters reports.

On the bright side, Verizon says that its wireless network held up well for the quarter, as it was mostly unaffected by Hurricane Irene and Tropical Storm Lee, and the strike consisted mainly of wireline workers.

The strike, which involved around 45,000 employees, or about half of its wireline workforce, centered on contract negotiations. Not surprisingly, it led to a major backlog for installations of services like FIOS TV and home telephony. The company tells Reuters it will need 90 to 100 days to clear its installation backlog, and the backlog on network repairs will last another two to three weeks.

Verizon expects the total cost of its recent troubles will be between $200 million and $250 million, which will certainly have a big hit on its third quarter earnings. Reuters notes that the company recruited thousands of managers to work overtime to pick up the slack for absent technicians and customer service representatives.

VB's research team is studying mobile user acquisition... Chime in here, and we’ll share the results.