Verizon Communications (VZ)

Organic growth totaled 1.4 million net customer additions, essentially all of which were retail.

Retail net customer additions totaled 1.2 million. This included a net loss of 122,000 retail customers, resulting primarily from the closing of a previously announced exchange agreement with another carrier. Verizon Wireless had entered into this agreement to

comply with conditions imposed in connection with regulatory approval of the company’s acquisition of Rural Cellular Corporation, which closed in August 2008.

Verizon Wireless added 5.8 million organic net new retail customers in 2008 — expected to be the most of any U.S. wireless carrier.

At the end of the quarter, Verizon Wireless had 72.1 million total customers.

Verizon Wireless continued to have a high-quality customer base, with 70.0 million retail customers (not including Alltel) — the most of any U.S. wireless brand. Following the recently completed Alltel acquisition, Verizon Wireless now serves more than 80 million customers, excluding markets to be divested.

Verizon Wireless continued to have low churn — 1.35 percent churn among all customers, and 1.05 percent among the company’s retail post-paid customers.

Verizon Wireless continued its double-digit revenue growth, with total quarterly revenues of $12.8 billion, up 12.3 percent year over year. Full-year revenues were $49.3 billion, up 12.4 percent. Service revenues in the fourth quarter were $11.1 billion, up 12.0 percent year over year, and $42.6 billion for the full year, up 12.2 percent.

This revenue growth was driven by accretion in ARPU (average monthly revenue per customer), which increased year over year for the 11th consecutive quarter. Total service ARPU of $51.72 was up 1.4 percent year over year, reflecting strong growth in total data ARPU, which was up 27.9 percent over the same period.

Wireless operating income margin reached 29.7 percent, up 350 basis points on a year- over-year basis. EBITDA (earnings before interest, taxes, depreciation and amortization) margin on service revenues reached 47.2 percent.