Send us Feedback

Verizon Communications (VZ)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

VZ » Topics » Significant Business Development Initiatives

This excerpt taken from the VZ 8-K filed Jul 28, 2008.

Significant Business Development Initiatives

Verizon Wireless, which expects the closing of the Rural Cellular acquisition soon, also launched or completed several significant business development initiatives in the second quarter:

 

  •  

The company paid for the 700 MHz spectrum it gained in the FCC’s auction. The purchase includes a nationwide footprint the company will use to build its 4G LTE (fourth generation, Long Term Evolution) network in the 2010 timeframe.

 

  •  

The company announced an agreement to purchase Alltel, with completion of the merger targeted for the end of the year, subject to regulatory approvals.

Verizon News Release, page 5

 

  •  

The company announced a five-year agreement with Qwest Communications International for Qwest to market and sell Verizon Wireless service beginning this summer.

Continued Growth in FiOS, Strategic Services

Verizon Wireline expanded penetration of FiOS services and continued to increase sales of enterprise strategic services. In the second quarter (with prior-period comparisons adjusted to reflect the impact of the previously mentioned spinoff):

 

  •  

Sales penetration rates (percentage of potential customers who buy the service) increased for both FiOS Internet (available for sale to nearly 8.4 million premises) and FiOS TV (available for sale to 7.0 million premises). FiOS Internet penetration averaged 23.5 percent across all markets, up from 18.7 percent in last year’s second quarter. FiOS TV penetration averaged 19.7 percent across all markets, up from 13.3 percent.

 

  •  

Verizon added 176,000 net new FiOS TV customers, for a total of nearly 1.4 million FiOS TV customers as of the end of the quarter.

 

  •  

Verizon added 187,000 net new FiOS Internet customers. The company had nearly 2 million FiOS Internet customers at the end of the quarter, nearly doubling the number of FiOS Internet customers since the end of second quarter 2007. Verizon added its 2 millionth FiOS Internet customer earlier this month.

 

  •  

Broadband and video revenues from consumer customers totaled more than $1.0 billion in the second quarter, representing year-over-year growth of 52.9 percent.

 

  •  

Growing revenue from broadband and video services drove consumer ARPU in legacy Verizon wireline markets (which excludes consumer markets served by the former MCI)

Verizon News Release, page 6

 

       to $63.76, a 10.4 percent increase compared with last year’s second quarter. The ARPU among FiOS customers was more than $130 per month.

 

  •  

Verizon Business had total revenues of $5.3 billion, or growth of 0.9 percent compared with last year’s second quarter. This was Verizon Business’ seventh consecutive quarter of year-over-year pro-forma revenue growth (non-GAAP, calculated as if Verizon and MCI had merged on Jan. 1, 2005). Global enterprise revenue, representing retail sales, increased 1.7 percent to $4.0 billion, compared with last year’s second quarter.

 

  •  

Sales of strategic services — such as IP (Internet protocol), managed services, Ethernet and optical ring services — continued to drive growth at Verizon Business. These services generated $1.5 billion in revenue, up 18.7 percent from second quarter 2007.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki