Verizon investment touches $3.4 bn in first quarter of 2016

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Telecom network operator Verizon Communications today said its investment towards Capex (capital expenditures) touched $3.4 billion in the first quarter of 2016.

Wireless capital expenditures of Verizon were $2.2 billion focusing more on LTE networks. The telecom network operator said it will enhance wireless Capex throughout the year.

Verizon will be making an investment of between $17.2 billion and $17.7 billion towards capital expenditures in 2016.

Earlier this year, Verizon announced its intention to acquire XO Communications’ fiber-optic network business and an agreement to deploy a new fiber platform in Boston. “Both will support a mix of new technologies, including 5G wireless services,” said Verizon CEO Lowell McAdam.

Verizon completed its sale of local landline businesses in California, Florida and Texas to pay down debt in second-quarter 2016.

Verizon said revenues increased 0.6 percent to $32.2 billion. Excluding AOL, which was not part of Verizon a year ago, operating revenues declined 1.5 percent. AOL had its highest Q1 revenues in the last five years.

Verizon’s IoT (Internet of Things) revenue increased 25 percent to $195 million in the first quarter of 2016.

Verizon added 640,000 postpaid connections excluding wholesale connections and including IoT. Verizon has 112.6 million (+3.7 percent) retail connections, and 107.2 million (+4.4 percent) retail postpaid connections.

Verizon said its revenue from wireless business fell 1.5 percent to $22 billion.

Verizon added 452,000 4G smartphones to its postpaid base.

Verizon had 73.8 million smartphones on its network, representing 85 percent of the total phone base. 4G devices were more than 81 percent of the retail postpaid connections base.

Approximately 92 percent of Verizon’s total data traffic is on the LTE network. Overall data traffic on LTE has increased by approximately 50 percent.

Verizon added 98,000 new Fios internet connections and 36,000 new Fios video connections. Total Fios revenues grew 5 percent to $3.5 billion.