This excerpt taken from the VZ 10-Q filed May 11, 2009.
Operating Revenue and Selected Operating Statistics
nm Not meaningful
Domestic Wirelesss total operating revenue in the first quarter of 2009 increased by $3,453 million, or 29.6%, compared to the similar period in 2008, primarily due to the inclusion of the operating results of Alltel as well as overall growth in our service revenues.
Service revenue increased by $2,930 million, or 28.9%, during the first quarter of 2009, compared to the similar period in 2008. The increase in service revenue was primarily due to the inclusion of service revenue as a result of the 13.2 million net new customers, after conforming adjustments, that we acquired in connection with the acquisition of Alltel. Service revenue also increased as a result of a 6.2 million, or 9.2%, increase in customers from sources other than the acquisition of Alltel since March 31, 2008 as well as continued growth from data services.
Excluding the customers acquired in connection with the acquisition of Alltel, Domestic Wireless added 1.3 million net retail customers, during the first quarter of 2009, compared to approximately 1.5 million during the similar period in 2008. Retail (non-wholesale) customers are customers who are directly served and managed by Verizon Wireless and who buy its branded services. The decline in net retail customer additions was due to an increase in our average monthly customer churn (churn), the rate at which customers disconnect service. The increases in our total and retail postpaid churn rates were primarily as a result of increased disconnections by business customers for Mobile Broadband service and secondary lines, which we believe is attributable to current economic conditions. We continue to believe that we have the most loyal customer base of any wireless provider in the United States, as measured by customer churn.
Total data revenue in the first quarter of 2009 was $3,649 million and accounted for 27.9% of service revenue, compared to $2,336 million and 23.0%, respectively, in the similar period in 2008. Total data revenue continues to increase as a result of increased use of messaging services and non-messaging services, such as Mobile Broadband and e-mail, data transport, and VZ Navigator. We expect that data revenues will continue to increase, directly as a result of recent strong sales of PDA and smartphone devices, continued introductions of new data-capable devices and upselling of data services to Alltel customers.
Total data ARPU increased by 20.8% to $14.16 in the first quarter of 2009, compared to $11.72 in the similar period in 2008, as a result of the aforementioned increased usage of our data services. Service ARPU decreased by 0.3% to $50.74 in the first quarter of 2009 compared to $50.91 in the similar period in 2008. Retail service ARPU decreased by 0.8% to $50.97 in the first quarter of 2009 compared to $51.40 in the similar period in 2008. The decline in service and retail service ARPU was due to the inclusion of customers acquired in connection with the acquisition of Alltel, as well as continued reductions in average voice revenue per customer.
Equipment and other revenue in the first quarter of 2009 increased by $523 million, or 34.3%, compared to the similar period in 2008 primarily due to the inclusion of equipment sales and handset insurance revenues from Alltel. Excluding the results of Alltel, equipment and other revenue increased slightly as a result of an increase in cost recovery surcharges, partially offset by a decrease in equipment revenue. The number of equipment units sold increased over the similar period in 2008 but was offset by a decrease in the average revenue per unit, driven in part by recent promotions.