Verizon Communications Inc. (NYSE:VZ) Q4 2022 Earnings Call Transcript

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We did a history high 1.4 billion net adds in the year of broadband subscribers. So of course, a lot of contributor to C-band, and that’s a clear metric to have. The other metrics you have is, of course, unlimited premium, where we say that actually, we’re performing very well where we have deployed a C-band in order to get customers to step up. And the step-up is very important. We are in a multi-subscription business or we are in a subscription business. And the more you can see that you’re upgrading the price, the P on that quantity, it’s enormously important for a long-term value for our customers, important. The third one that is coming, and I mentioned also when I opened is, of course, private 5G networks, mobile edge compute, all that is, of course, going to be very much supported by the C-band as well.

There we will come back and start reporting on that when we feel that, that is coming into the play from a more significant portion. But mobility — and remember also that we had the wireless business side, the business side actually growing because of the reliability of our network and the resilience of our network, which is how our enterprise customers are buying from us when it comes to wireless business. So I think there are many metrics that you can see already now that is really connected to the C-band. Then I just want to remind you it’s almost less — I think it’s one year since we got — since we launched the C-band. It’s only one year, and we’re going to cross 200 million POPs. We have never built so fast in the entire history of the company, and we’re well ahead of the plan to hit the 250 million POPs that we said at Investor Day by end of ’24.

So I think that this is really a game changer in the market. And we see performance-wise, we’re outperforming. We have the most resilient 5G network in the nation and we are just starting, just starting with 60 and 100 megahertz. And as you heard me talking, we have 160 in average, it’s going to be 200 later on. It is a game changer, and we can already see it right now, and we see already metrics right now that is proving it.

Operator: The next question comes from Craig Moffett of MoffettNathanson. I’m sorry, Michael Rollins of Citibank, your lines is open.

Michael Rollins : Two questions, if I could. The first one, as you mentioned earlier in the discussion that you pulled back from some of those longer-term targets that you had previously you added the 3-plus percent service revenue and other growth for this year and 4-plus percent for next year. Can you unpack the categories that are at or above the plan from a few years ago? And then the areas of shortfall and if those areas, do you view those as temporary or more permanent changes in the opportunity for Verizon?

Hans Vestberg : I can start. I mean, first of all, we’re more confident than ever that we have the right strategy and we have the five vectors of growth. All of them are going along. Some are actually exceeding our expectations, some are a little bit slower and some have a little bit different jump-off points. That’s where we are. But there’s no difference how we see the market and how we believe we can compete in all the five vectors of growth that we outlined in the last time. It’s more a push in time than something else because of this year or this year, in ’22, I guess, I should say, had some jump off that is not really helping us. But all in all, the whole strategy, where we’re going, I have a lot of confidence in our team.

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