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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, January 26, 2011

Verizon Expects Growth to Accelerate

Verizon Communications, one of the U.S.'s largest telecoms companies, said its revenue, on a like-for-like basis, grew 2.3% year-on-year to 26.4 billion US dollars in the fourth quarter of 2010. The company said that wireless service revenue rose 7.7%, boosted by a 25.5% rise in wireless data revenue, while its revenue from fibre-based landline services climbed 26.8%.

Fran Shammo, Verizon's chief financial officer, said the company sees accelerated top-line revenue growth rates in the range of 4% to 8% in 2011. He said that "this outlook is based on the continued growth in strategic businesses -- aided by Verizon’s prior investments in technology; sales and recurring revenues from the newly announced Verizon iPhone and LTE wireless devices; continued growth in revenues from FiOS (fibre) and strategic business services; and a stable to improving economic environment."

With the introduction of the iPhone and LTE devices, Verizon said it sees smartphone penetration rates increasing from the current 26% to more than 50% by the end of 2011.

Verizon said it had a total of 94.1 million customers at the end of the fourth quarter, plus a further 8.1 million  machine-to-machine and telematics connections. Verizon Wireless customers sent or received more than 180 billion text messages in the quarter, together with nearly 4.5 billion picture/video messages and completed more than 20 million music and video downloads from Verizon Wireless. The equivalent figures for the fourth quarter of 2009 were 162 billion text messages, more than 4 billion picture/video messages and more than 38 million music and video downloads.

In 2010, Verizon's capital expenditure totalled 16.5 billion dollars compared with 16.9 billion dollars the previous year. The company expects capex to be flat or slightly down in 2011. source: Verizon statements

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