Verizon: Wireless Boosts Profits, Landline Opps Include MDUs

Meanwhile, Verizon Business, the former MCI, increased sales .4 percent in the first quarter to reach $5.2 billion compared to the same time last year. The division did lose a couple of large customers that provided “good margins,” Toben said. Nonetheless, said Denny Strigl, Verizon’s president and COO, Verizon Business is reaping the benefits as enterprises outsource and consolidate services with one vendor. It’s doing especially well with sales of security, private IP and managed LAN/WAN services, Strigl said.

“We’re feeling good about our competitive strengths,” he told analysts.

Even as wireline progressed, the wireless side did even better. Verizon Wireless sales topped $11.6 billion in the first quarter, a 13 percent jump from a year earlier. The driver? Data. The company’s network carried more than 58 billion text messages, 1.1 billion picture/video messages and 34.6 million music and video downloads. Toben said executives expect to maintain double-digit growth.

That’s because data demand will boom, and because Verizon won the C Block 700MHz spectrum auctioned off by the FCC. Verizon increased its nationwide spectrum coverage by 60 percent, Toben said, and that should translate to more wireless subscribers.

Verizon also expects more consumers to sign up for its $99 unlimited voice plan. Major carriers in February started wireless price wars as competition for customers increases. Strigl said he’s pleased with the first-quarter results of Verizon Wireless’ unlimited offering. Before the all-you-can-talk plan launched, only 4 percent of subscribers opted for $99 or higher contracts, he said. That number now is nearly 90 percent, Strigl said.

Finally, Verizon, like its competitors, will, at some point, transition to 4G protocols. The EVDO carrier will switch to the Long-Term Evolution (LTE) standard, as AT&T is doing, but for now, that initiative isn’t a major part of the capital budget, Toben told analysts.

Verizon’s stocks fared well on its earnings news. Shares were up 55 cents, or 1.48 percent, $37.59 during late morning trading on the New York Stock Exchange.