Verizon Communications reported Q3 oerating revenues of $19.0 billion, up 5.4% on a comparable basis from $18.1 billion last year. Q3 revenues at Verizon Wireless increased 14.2%, or $1.0 billion, to $8.4 billion, year-over-year. Q3 revenues on a comparable basis at Domestic Telecom were $9.4 billion, a 0.7% decrease compared with the third quarter 2004. Domestic Telecom revenues in the third quarter 2005 were flat with the second quarter 2005 on a comparable basis. Some highlights:
Wireless:
- 1.9 million net customer additions, up 14.6 percent; 49.3 million total customers, up 17.0 percent; churn (customer turnover) of 1.3 percent
- Total quarterly revenues of $8.4 billion, up $1.0 billion, or 14.2 percent -- the 13th consecutive quarter of double-digit year-over-year revenue growth increases
- Operating income margin of 21.8 percent
- Total churn rate, a key measure of customer loyalty, was 1.3 percent for the third quarter 2005, down from 1.5 percent in the third quarter 2004. Churn in the retail post-paid segment -- a base of 45.7 million customers -- was 1.08 percent in Q3 2005.
Wireline:
- 4.5 million total broadband connections (DSL and Verizon FiOS data lines), including a company-record 389,000 net new broadband connections
- Average monthly revenue per residential customer up 4.6 percent to $51.61
- Data revenues up 10.9 percent to $2.2 billion
FiOS: FiOS activity is underway in 15 states, passing a cumulative 2.5 million homes and businesses. The company remains on track to pass 3 million homes and businesses by the end of the year with FiOS data services. The company said it plans to pass an additional 3 million homes and businesses with FiOS data services next year -- for a total of 6 million homes and businesses passed by year-end 2006. In the 35 markets where Verizon has been actively selling FiOS data services for more than six months, market penetration is approximately 12.4%-- an improvement over DSL penetration rates over longer timeframes. FiOS TV, where available, offers all-digital programming with more than 330 channels.
Total Connections: Verizon's total customer connections -- which include wireline switched access lines, wireless customers, and wireline and wireless customers using broadband connections (EV-DO, DSL or FiOS) -- increased to 103.5 million at the end of the third quarter 2005.
Switched access lines: 49.7 million at the end of the third quarter 2005, a decline of 6.2 percent compared with the end of the third quarter 2004. This has been more than offset by the increases of 42.3 percent in wireline broadband connections and 17.0 percent in total wireless customers over the same period.
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