Verizon Adds Record 2.1 Million Wireless Subs
FiOS TV Growth Slows, But So Do DSL Losses
Verizon's fourth quarter 2012 earnings
released this morning show that the telco added a record high f 2.1 million new postpaid wireless subscribers during the quarter for a total of 98.2 million wireless subscribers. Driven by those wireless gains Verizon reached the $30 billion operating revenue mark for the first time in the telco's operating history. 58 percent of Verizon's contract subscribers now have smartphones, up from 53 percent just the quarter before. Wireless continues to be the motor powering the company.
Still, Verizon's record quarter profits were eaten into by iPhone subsidies, pension costs and a $1 billion hit related to hurricane Sandy. The result was a negative earnings per share of -$1.48, twice the negative EPS of $0.71 seen during the same quarter last year.
FiOS TV additions were slower last quarter -- the company adding 34,000 FiOS TV customers compared to the 194,000 gained in the quarter one year ago. Verizon had a total of 5.4 million FiOS Internet and 4.7 million FiOS Video connections at the end of the quarter.
As we've been noting
, Verizon used Sandy to migrate a lot of DSL users to fiber; the telco says they migrated 223,000 homes to fiber, contributing to an 11 percent improvement in trouble reports across Verizon’s entire copper network for the year. While FiOS expansion is essentially frozen, the company estimates they'll upgrade another 300,000 historically troubled DSL lines to fiber in 2013.
Verizon continues to bleed DSL and POTs customers to the tune of hundreds of thousands of subscribers each quarter, as the company lets these users flee to cable
so they don't have to upgrade them. Thanks to the Sandy conversions Verizon's DSL exodus slowed slightly, the telco losing 117,000 DSL users on the quarter compared to 144,000 last quarter. POTS losses slowed but continued to be severe, with the telco losing 402,000 copper voice lines on the quarter.