Verizon Communications (NYSE: VZ) said that last year presented a difficult economic environment and that there is more uncertainty going forward into 2009, but President and COO Denny Strigl said during the company’s Q4 conference call today that the wireless unit, partially owned by Vodafone (NYSE: VOD), is particularly strong and that “we have no evidence of slowing or customers trading down either on plans or features.” Here’s some highlights from the call via the Seeking Alpha transcript:
– Downturn in wireless?: Strigl: “Service revenue grew 12 percent. ARPU increased 1.4 percent. Data revenues for us continued to grow, about 41 percent…and non-messaging revenue increased 52 percent. We are selling more smartphones…about 37 percent of the retail devices that have been sold…Our churn did tick up a bit compared to the prior year…That probably reflects the employment issue and the layoffs in many businesses. About 4 basis points on third and fourth line disconnects. We see no reporting evidence that they are going to other providers. I think that is economy related.”
– 2008 Business Round-up: During the quarter, Verizon reminded everyone that it purchased nationwide 700 MHz licenses; acquired the Rural Cellular and Alltel (NYSE: AT) properties; spun off some wireline properties in northern New England; and passed more than 3 million additional phones with fiber, opened 3.3 million homes for sale of our FiOS TV service and expanded FiOS availability in big city markets like New York.
– LTE Update and DTV delay: Strigl said during Q&A that Verizon is planning on LTE trials later this year and commercial availability will begin “within the first half of 2010.” Verizon said the digital TV delay shouldn’t be a problem in rolling out LTE which will use the spectrum being turned over by broadcasters. “We are trying to work through that issue but certainly later in the year had been our plan on the trials and we are trying to work through even with the DTV delay whether we could use some of that spectrum to work out the trial.”
Release | Presentation | Transcript (via Seeking Alpha)
We believe that the VZ employees, they will strive to do better.