CEO Hans Vestberg said Verizon will take a more "prudent" approach to what types of wireline business it accepts.

James Anderson, Senior News Editor

January 24, 2023

4 Min Read
5G edge computing

Fixed wireless and SMB continue to buoy Verizon during its struggles in wireline and enterprise, according to the company’s latest quarterly earnings.

The carrier unveiled its fourth quarter 2022 results, which show business revenue growing 1.2% year over year to $7.9 billion in Q4 2022. Verizon continues to report wins on the mobility side. Its business-focused wireless services increased 4.7% year over year to $3.3 billion. However, overall business growth carried on at a more sluggish rate, thanks to slumping wireline revenues. Operating income in the business segment decreased 26.5% from Q4 2021 to $585 million.

Verizon chairman and CEO Hans Vestberg said the company will be taking “many actions” to deliver on its long-term plans, and that includes making shifts to adjust to “headwinds” in wireline.


Verizon’s Hans Vestberg

“We’re going to be even more prudent about what type of [wireline] business we’re taking, which will reduce our top-line probably but it will improve our profitability and our cashflow,” Vestberg told investors in an earnings call Tuesday.

The company set a guidance of 2.5% to 4.5% wireless service revenue growth in 2023. It also forecasted an adjusted EBITDA of $47.0 billion to $48.5 billion.

“We delivered on the operational expectations and financial targets that we set in the second half of 2022,” Vestberg said. “We are rapidly building out our C-Band spectrum with the most aggressive network deployment in our company’s history and are well positioned to improve and accelerate our performance. Wireless mobility and nationwide broadband will be two of the most significant contributors to our growth for the next several years.”


CSG’s Michael Pittman

Business Sizes

As has been the case in other recent quarterly earnings, smaller businesses proved a strong source for Verizon.

Small and medium business operating revenues grew 5.5% to $3.3 billion. On the other hand, global enterprise declined 4.2% from last year to just over $2.4 billion. However, enterprise registered a just slight drop from just under $2.5 billion in Q3 2022.

Public sector/other remained fairly constant, growing 0.9% to $1.5 billion.

Michael Pittman, president of exclusive Verizon partner Connected Solutions Group (CSG), said Verizon has embraced the idea of bringing enterprise-grade wireless offerings to SMBs. Moreover, he said Verizon has turned to the channel to help grow that market.

“We see it and feel it, and leveraging partners like us to really be the feet on the street in these communities and deploying, installing, and supporting these customers is absolutely intentional in design,” Pittman told Channel Futures.

Fixed Wireless

The company also stated that it recorded its best quarter in broadband in more than a decade. For example, it recorded business broadband net additions of 114,000. That being said, fixed wireless access (FWA) carried the broadband category, accounting 117,000 net additions in Q4. The company saw 3,000 net losses in wireline broadband last quarter.

FWA connections grew from 122,000 in Q4 2021 to 568,000 in Q4 2022.


Masters Telecom’s Douglas Kerl

Douglas Kerl is the president and CEO of Masters Telecom, an elite partner in Verizon’s Mobility Co-sell Program. He said the Verizon earnings results line up with what he expected.

“Verizon has invested billions in their 5G spectrum and fiber deployment, and I believe we are just seeing the tip of the iceberg of their fixed wireless access (FWA) growth,” Kerl told Channel Futures. “This investment and strategy gives Masters Telecom and other Verizon Wireless partners long-term confidence in their program.”

Pittman said his firm has seen FWA devices and services “absolutely explode” in customer adoption.

“Verizon has made it a point of emphasis, creating price plans that are affordable for business and introducing use cases that truly make sense to customers. Especially as C-Band coverage continues to grow by the day, the customers are noticing what they can accomplish with these speeds and the peace of mind that it’s all over the air,” Pittman told Channel Futures. “By relying on partners like us to do the heavy lifting on-site for the customers, again everyone can focus on what they do best to provide the best experience for the customer. This is not a flash in the pan, the 5G rollout has begun.”

Want to contact the author directly about this story? Have ideas for a follow-up article? Email James Anderson or connect with him on LinkedIn.


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About the Author(s)

James Anderson

Senior News Editor, Channel Futures

James Anderson is a news editor for Channel Futures. He interned with Informa while working toward his degree in journalism from Arizona State University, then joined the company after graduating. He writes about SD-WAN, telecom and cablecos, technology services distributors and carriers. He has served as a moderator for multiple panels at Channel Partners events.

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