Verizon Says 2016 Was “Transformational” But Maybe Not in a Good Way

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verizonCompany EVP/CFO Matt Ellis told analysts during an earnings call yesterday that 2016 was “transformational” for Verizon, demonstrating shareholder value while repositioning the business. He said the carrier completed wireline divestments in three markets, negotiated labor contracts, had 1.3 million in smartphone net additions and restructured its wireline cost structure.

“We added capacity through densification of our 4G network and reduced unsecured debt.” Verizon is crafting a “network that is ubiquitous and reliable,” entering 2017 in a strong position.

“Improvement of cost structure for wireless plans is a priority,” he said, noting that about 60 percent of the postpaid phone base is now on unsubsidized pricing plans as customers fulfill their service contracts.  

As for Verizon’s planned merger with Yahoo, Ellis said “we’re still working with Yahoo to discover the source of the data breaches and have not reached any conclusions yet.”

Asked to comment on how new FCC Chairman Ajit Pai might view telecom policy changes and how those might affect Verizon, he said “it’s too soon to tell.” In general, though, Verizon “makes investments over many years, given the nature of the business we’re in…not based on who happens to be in office today.”

“We look forward to working with the new administration and new FCC leadership, and we expect to be competitive in whatever environment we’re operating in,” he said.

January 25, 2017

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