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Verizon willing to sell spectrum, doesn't see enterprise improvement

  • Shortly after Reuters reported T-Mobile USA (TMUS +1.1%) has approached Verizon (VZ +0.7%) about buying spectrum, Verizon CFO Fran Shammo has confirmed his company is willing to sell its unused A Block spectrum.
  • However, Shammo insists (perhaps as a negotiating tactic) Verizon is willing to deploy the spectrum itself if it doesn't received a fair offer.
  • The spectrum resides in the 700MHz. band, which is well-suited for low-density areas where range is more important than bandwidth. By contrast, Verizon's traffic problems are largely in high-density metro areas such as NYC, Chicago, and San Francisco, where its ramping 4G capex to relieve congestion.
  • Shammo has also made cautious remarks about 2014 U.S. enterprise/macro conditions. "The good news is that the macro enviro is not getting worse, but not getting better ... In the U.S. we still have too much uncertainty around what tax reform looks like."
  • Big Red's enterprise mobile sales have been healthy, but its wireline business sales have been declining, thanks to voice line disconnections and strong data services competition. Verizon's global enterprise wireline revenue fell 3% Y/Y in Q3 to $3.67B, and small business wireline revenue fell 3% to $650M.
Comments (1)
    , contributor
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    Good financial app!
    20 Nov 2013, 02:20 PM Reply Like
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