Verizon posted a 21 percent year-over-year drop in its Q2 net income, largely from rising costs and declining wireline business. Pressure on the business will continue into the second half of the year, when the company plans to cut 8,000 jobs, Verizon executives said on a conference call Monday. The carrier added 1.1 million wireless subscribers, down from the 1.5 million it added a year earlier. Churn was 1.37 percent, up 22.3 percent year-over-year. The carrier has 87.7 million wireless customers. Wireless revenue is increasing as a proportion of total revenue, Chief Financial Officer John Killian said. And the integration of Alltel is going very well, he said. Mobile applications are a growth area, he said, noting that a Verizon developer conference will be held Tuesday. The goal is to have a Verizon application store running this year, he said. nnVerizon tries to get out ahead of questions about handset exclusivity, Chief Operating Officer Denny Strigl said. Verizon's new position of limiting exclusives to six months will promote competition and innovation in device development and design, and the approach is fair to all sides, he said. But some consumer groups haven't been impressed. Meanwhile, the DoJ, responding to small wireless carriers, will find in a study of the wireless industry that it's very competitive, he said. Wireline revenue fell 5.2 percent year-over-year. The company needs to reduce the wireline cost structure more significantly over the next 12 to 18 months, Killian said. The company will cut 8,000 contract workers and employees in the second half, many in Q3, he said
展开▼
