Verizon Communications (NYSE: VZ) reported its second-quarter earnings today, saying that more than ever wireless is becoming an increasing important part of its business. In Q2, wireless made up 57 percent of the company’s overall revenues, but when the Frontier acquisition closes later this year, it will be closer to 60 percent.
If that’s true, that puts way more pressure on the performance of the wireless network, its upcoming handset lineup and puts increasing pressure on its wireline division. An update on all three after the jump…
– Wireless business: Verizon’s CFO John Killian said during the call today that the predominant driver of top line growth in wireless is coming from data. In Q2, data represented more than 29 percent of revenues. Data ARPU increased to $15, driven by smartphone sales which now represent 40 percent of all device sales.
– 4G Network: To be able to keep up with mobile broadband demand, Verizon’s President and COO Denny Strigl, said they are investing heavily in LTE. “We plan to conduct LTE trials in Seattle and in Boston later this year. We