Verizon signals flat capex for 2015

As communications technology vendors look for an increase in carrier capital expenditures (capex) in 2015, it appears their gaze should be directed elsewhere than Verizon Communications Inc. (NYSE, NASDAQ: VZ). The service provider's chief financial officer, Fran Shammo, indicated to attendees on an analyst call October 21 he expects the company to hold 2015 capex to near 2014 levels.

Verizon has projected its capex will be about $17 billion in 2014. Shammo did not provide official guidance on the October 21 call, held to discuss the company's third quarter 2014 results. However, in answer to a question from Morgan Stanley's Simon Flannery, Shammo said the company hopes to improve its ratio of capex to revenue next year.

"As far as whole dollars go, we said around the $17 billion mark [for 2014] and I'll give you some more guidance in January. But I don't anticipate that that will change pretty materially going into the next year," Shammo said.

For the recently concluded quarter, Verizon spent $4.1 billion in capex, bringing the total so far this year to $12.6 billion. This represents an $817 million (6.9%) increase versus the first nine months of 2013. Wireless accounted for $2.5 billion of the quarter's capex, and $7.8 billion of the capex spent so far this year.

Wireline capex of $4.2 billion through the first nine months represents a 6.1% decline from 2013 levels.

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