Not to be cynical or skeptical, but a change in Verizon reporting segments that is nearly revenue neutral in the near term also means it will be easier to segregate high margin from lower margin product lines, as well as bolster growth opportunities in both reported segments, instead of facing a future where mobility grows and the fixed network stagnates and declines.
In the past, Verizon has reported fixed line network revenues separately from mobile network results. The reporting methodology focuses on consumer and business revenues, no matter which networks are used.
The revenue pie charts look quite similar. Over time, assuming most of the internet of things revenue winds up being enterprise driven, there is a reasonable chance of showing business unit revenue growth as well. Absent these changes, it is not clear the entire fixed network business would do anything but shrink.
That Verizon’s overall growth now is driven by mobility services is not new. What is new is the way Verizon expects to report revenue and growth. Ignoring for the moment any potential advantages Verizon might gain in sales efficiency and fulfillment, the reorganized reporting should make it easier for Verizon to show revenue growth in each segment, instead of facing a situation where the fixed network contributions continue to fall.
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