No more DSL in FiOS territories, says Verizon - Lightwave

No more DSL in FiOS territories, says Verizon

Lightwave Staff

Verizon Communications Inc. (NYSE, NASDAQ: VZ) will no longer offer Internet or other services via DSL in areas where it has its FTTH-enabled FiOS offering available. Fran Shammo, Verizon Communications executive vice president and CFO, made the announcement late Thursday, April 19, during the company’s Q1 2012 earnings conference call.

Shammo said the decision was part of an overall review of its product lines and “rationalizing those that are not meeting our strategic and financial requirements.” For example, the company reported 193,000 FiOS Internet and 180,000 FiOS Video net additions during the quarter, with increased sales penetration for both products. However, overall broadband additions increased by only 104,000 from the previous quarter, implying a shortfall in DSL broadband connections.

Nevertheless, the 104,000 additions represented the largest quarterly increase since the second quarter of 2009.

Overall, wireline first-quarter 2012 operating revenues were $9.9 billion, a decline of 2 percent versus first-quarter 2011. Wireline operating income margin was 1.6 percent, compared with 2.8 percent in first-quarter 2011, and segment EBITDA margin (non-GAAP) was 22.6 percent, off from the 23.6 percent in first-quarter 2011.

"Verizon delivered double-digit earnings growth and strong cash flow this quarter," said Lowell McAdam, Verizon chairman and CEO. "We built momentum coming out of 2011, and our results show that we continue to execute in the key growth areas of our business. Verizon Wireless produced both great growth and great margins, and we produced another strong quarter of FiOS growth. We are confident we will improve Wireline margins for the full year. Our repositioning of Verizon Enterprise Solutions has better aligned our strengths in high-growth markets, and we expect our enterprise business to contribute even more to overall Wireline revenue growth and profitability over time."

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