Verizon Communications released fourth quarter earnings of $0.54 per share missing analyst expectations of $0.55 per share.
Verizon Wireless has experienced a 7.7% increase in service revenue and a 25.5% increase in its data revenue from 4th Quarter 2009.
Verizon’s Wireline segment added 197,000 Fios internet users and 182,000 Fios TV subscribers in the 4th Quarter of FY 2010.
On January 11th 2010 Verizon Wireless announced that it would begin carrying the iPhone 4 which will be available to Verizon Wireless subscribers in February of 2011. Verizon’s ability to begin distributing the iPhone 4 as one of its premier mobile devices is expected to provide substantial wireless service and data growth. Despite the iPhone’s ability to increase customer and data growth, many analysts are concerned of Verizon’s ability to support the influx of data usage. Verizon Wireless has been a market leader in service quality over the last years. Deterioration of Verizon’s wireless network could potentially cause material problems for the company’s growth and ability to maintain favorable churn. Management has stated that it is fully confident in its network, however this is an issue that UASBIG analysts will continue to monitor closely.
~Chad
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