With most wireline revenues flat or showing at best modest growth, the three leading ILECs"Verizon, SBC and BellSouth"continue to put their marketing and technical muscle behind new wireless and broadband services and packages.
In its just-released second quarter financial results, Verizon showed a six percent revenue gain from the year-earlier quarter. But wireless revenue growth was 25 percent, with the company now topping the 40-million customer mark. Together with broadband and data services, wireless accounted for 52 percent of Verizon's revenue growth. By contrast, U.S. telecom operating revenues showed a 2.9 percent drop last year's second quarter.
Acknowledging that this trend may continue, Chairman and CEO Ivan Seidenberg said, "Wemade headway in offsetting an anticipated decline in traditional wireline revenues with new revenues from broadband DSL, long-distance, data and Enterprise services. Our investments in these areas are paying off, as we continue to transform our revenue mix."
Part of that transformation is offering high-speed Internet access/TV programming packages to compete with cable television providers. Verizon just announced that a marketing agreement with DIRECTV it began in Rhode Island in February has just been expanded to six mid-Atlantic states and the District of Columbia. After Rhode Island, the service was introduced to customers in California, Florida, Illinois, Indiana, Michigan, New York, Ohio, Oregon, Washington state and other New England states. The package includes DIRECTV services, local and regional service and unlimited long-distance calling and Internet access from Verizon Online.
BellSouth and SBC pursue similar pattern
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