Thursday, January 26, 2012

AT&T, Verizon Results: Mobile Grows, Fixed Line Shrinks

It is not news, nor unexpected, that AT&T's traditional wireline business, and Verizon's similar business, are contracting, while mobile is leading growth at both firms.

Revenue for the AT&T fixed network business fell to $14.9 billion from $15.1 billion, year over year. AT&T, Verizon fixed line business contracts

Verizon encountered the same pattern in its most recent quarter. Wireless generated $18 billion worth of revenue, and wired services about $10 billion.
Operating revenue grew in mobile, but declined in fixed line. Basically, all the new FiOS revenue is simply compensating for losses in other legacy services, including voice services and digital subscriber lines.
In the fourth quarter 2011, Verizon Wireless delivered the highest number of retail net additions in three years and strong growth in revenues, driven by increased smartphone penetration andincreased retail postpaid ARPU (average monthly service revenue per user). Fixed line revenues decline
Total wireless revenues grew 13 percent year over year while data revenues grew 19 percent year over year.

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