Leading telecom company,
Verizon Communications Inc.
) has collaborated with, cloud-based voice marketing services
provider THECALLR to offer enterprise cloud solutions. Financial
details of this agreement were not disclosed.
According to the press release, THECALLR will utilize
Verizon's private enterprise cloud infrastructure as the platform
for infrastructural development of its voice-based enterprise
services. For Verizon, the agreement expands its footprint beyond
conventional wireless service and strengthens its enterprise
Going forward, Verizon expects the enterprise business to
contribute more to wireline revenues and profits. This can be
achieved by rationalizing the enterprise solutions product
portfolio, eliminating old products, reducing merchandise
complexity, streamlining services and consolidating networks to
The company's enterprise division comprises advanced business
technology solutions for a number of corporations and
American Tower Corp.
), d'Amico Societa di Navigazione, the District of Columbia, Kohn
Pedersen and Fox associates,
Marathon Petroleum Corp.
), Panviva and
). To support the company's landline products and services,
primarily FiOS Internet and FiOS TV, management is appointing 100
full-time sales employees to the national customer-retention
center. This unit will manage sales issues as well as extend
Verizon has a strong foothold in the wireless business and
continues to capture additional market share via robust
deployment of the 4G Long Term Evolution network. This leads to
improved operating and capital efficiency. The company is leading
the industry in terms of 4G deployment. Verizon expects to
convert the entire nationwide 3G footprint to 4G by the next
couple of months. The company's new data plan - Share Everything
- is expected to generate high revenues over the long term.
However, despite Verizon's significant growth prospects in the
wireless arena, we remain wary of heavy iPhone subsidies that can
hurt earnings in the near term. Further, Verizon's wireline
division is currently facing challenges from the ongoing
restructuring and cost-saving efforts.
Although the spectrum deals are expected to be accretive over
the long term, we believe these might put pressure on the balance
sheet in the short term due to falling cash balances and
increasing capital expenditures. In addition, the we believe that
the company's decision to buy the remaining stake at Verizon
Wireless may stress its balance sheet and result in lower
Currently, Verizon has a Zacks Rank #3 (Hold).
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