Back to Headlines Print Version Buzz Up Stumble it Tweet it Facebook LinkedIn

Verizon CFO: Economy Continues To Create Headwinds For Us

By Roger Cheng, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Verizon Communications Inc. (VZ) continues to face economic headwinds, according to Chief Financial Officer John Killian, who declined to call a bottom on the market.

"We're seeing stabilization, but no meaningful improvement," Killian told analysts during a conference call on Monday.

Likewise, there hasn't been any change in information technology and communications spending from its largest business customers, he added.

Business spending continues to hurt the telecommunications companies. Killian said he believes wireline margins will improve through a combination of an economic recovery and cost cuts.

Verizon Wireless saw its normally low turnover rate in wireless increase due to increased disconnections from business users, Killian said. He added that the company was excited about its lineup for the fourth quarter, including the Blackberry Storm2, slated to sell on Wednesday, as well as the Motorola Inc. ( MOT) Droid, which Killian called "groundbreaking."

Pricing pressure continues to affect the wireless industry. T-Mobile USA, a unit of Deutsche Telekom AG (DT), just unveiled a new series of price cuts. Killian said the cuts were more moderate than expected, and he doesn't see a need to respond.

Looking ahead, Verizon is on schedule to launch its fourth-generation LTE network by next year, and also plans to launch its VCast "app store" soon, Killian said.

On FiOS, Killian said the company is targeting added 1 million new customers a year. He added that the slowdown in growth was a result in a change in promotional activity.

Chairman and Chief Executive Ivan Seidenberg said he is confident that the company's planned spin-off of some of its wireline assets, which it plans to merge with Frontier Communications Corp. (FTR), will close on schedule.

Verizon shares are up 0.5% at $29.00 in pre-market trading.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com

  (END) Dow Jones Newswires
  10-26-090928ET
  Copyright (c) 2009 Dow Jones & Company, Inc.