Verizon’s CapEx for the first nine months of 2009, including incremental spending related to Alltel, totaled just below $12.5 billion, said John Killian
Chief Financial Officer of Verizon, speaking at the UBS Global Media and Communications Conference in New York this week. This is about 1% below last year. For the full-year, Verizon’s CapEX should be about $17.4 million.
Verizon’s topline performance this year has been driven by wireless data. FiOS broadband and video. Within the enterprise market, IT services continue to increase, driving sequential growth of 2.5% in global enterprise revenue. However, due to the recession, there has been weakness in volume-based core products.
Looking ahead, Killian expects revenue growth in wireless will be driven by the continued explosion in data plans, applications and content, and
machine-to-machine usage. LTE is also seen as very promising, with more revenue growth opportunities and a more efficient network. Verizon is also looking to LTE for lower operating costs and capital requirements. He confirmed that all systems are go next year’s LTE rollout, which is expected to hit 25 to 30 markets by the end
of 2010, representing 100 million POPs.
On the wireline front, Killian expects Verizon will substantially complete its FiOS build program by the end of 2010. This should yield about $2 billion of capital savings each year. Verizon will thereby reduce its capital requirements beginning in 2011, improving free cash flow and investment returns.
An archive of the webcast is on the company’s website.
http://www.verizon.com
