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Below is an ongoing record highlighting notes from select VZ investor presentations and earnings calls (newest content shown first).
Citi Conference, 1/8/2019
Interview with Ronan Dunne, President of Verizon Wireless
Divergent View Summary: Verizon pre-announced 1.2mm post-paid net adds including 650k phone net adds, beating consensus expectations for 4Q. Verizon continues to express confidence in its wireless spectrum holdings and ability for 5G to compete in the fixed broadband market.
- Key priorities for 2019
- Discipline around balance sheet
- Wireless – continue momentum from 2018 and lay the ground for 5G
- Core 4G business – competitive landscape in wireless?
- Launched unlimited at beginning of 2017
- Unlimited is not one size fits all, so we built out category in context of unlimited world such as mix and match (taking different lines at different plan levels)
- 4Q 2018 trends
- Built some nice momentum in first couple of quarters
- Delighted to say that we had an outstanding 4Q
- We added 1.2mm post-paid net adds including 650k phone net adds
- Churn at 0.82%
- Not seeing much change from pre to post migration
- First quarter with two MSOs (CMCSA and CHTR) competing in the marketplace
- What is driving strength in post-paid phone adds in 2018 from an industry perspective?
- Engagement in the category is growing
- Seeing more lines per account and more people taking connected devices (watches, tablets, etc)
- Unlimited gives people piece of mind to dive into the category
- We are taking our fair share if not more
- For industry overall, there is a pre to post migration
- Sustainability into 2019? AT&T building out Firstnet, Cable trying to take share, T-Mo/S merger
- Majority of customers not on an unlimited plan, so still have a lot to go there
- Seeing growth within unlimited plans
- B2B – fastest growing part of business and have wherewithal to compete with FirstNet today. If you are a first responder looking for coverage, we already have that coverage and can give them dedicated capacity
- Cable – committed to being a best in class partner, but also committed to losing less than our fair share in our branded business
- 5G – update on commercial test markets and experiences you are seeing from customers?
- We have been building 4G in a way that allows us an easier and faster migration to 5G
- Launched initial commercial launch of 5G residential. Ambition is to reach 30mm homes
- Three interesting things – 1) performance of product is higher than we anticipated. Most customers seeing 1 Gig rather than 300mb that we anticipated. Only using 400 mhz out of the 1 Ghz of mmWave spectrum available, 2) our ability to identify signal strength and coverage for 5G is improving, 3) about half of customers are new to Verizon
- 4 initial markets
- First 5G smartphone to come in 2019
- Importance of a bundle with mobile services?
- 5G may have a convergence of wireline and wireless, where we may have separate CPE (consumer premise equipment) and separate bills for two different elements of connectivity
- Need for more spectrum?
- 53-54% of spectrum is used in 4G LTE
- We have ability to re-farm at 1850 and 1900 as we take out CDMA
- We have an explosion of capacity in the areas where the demand is due to largest holding of mmWave spectrum on the planet
- We have the ability to build out more macro sites also
- Even with move to unlimited, we are more spectrally efficient today than two years ago
- 5G as a competitor to broadband – is it an urban opportunity or can it extend to suburban/rural?
- Our initial focus will be in the urban environment
- But a cluster of homes in a rural area or a college campus is also a good target