Verizon Confirms $18 Billion Capex

Verizon held their first quarter earnings conference call yesterday and confirmed 2015 capex guidance of $17.5 to $18 billion. Jennifer Fritzsche, Senior Analyst at Wells Fargo, explained, “Wireless capex is focused on deploying existing AWS spectrum and small cell technologies, while also refarming PCS spectrum. Adjusting for tower sale, FCF [free cash flow] was $4.2 billion in Q1 vs. $3.0 billion in Q1’14. FCF was boosted by $1.3 billion in securitization of EIP [equipment installation plan] receivables, which Verizon will continue to do on a quarterly basis.”