New Verizon Global Services Organization ‘Unlocks’ New Opportunities for Private Wireless, MEC

October 21, 2022 at 11:16 AM EDT

The telecom giant posted positive business segment revenue driven by SMB growth despite a decline in the enterprise sector.

Telecom giant Verizon is taking steps to leverage the strength of its core networking capabilities to operate more efficiently and focus on its wireless strategy.

One of those actions was the newly formed Verizon Global Services (VGS) organization, which was revealed in early October. This is to streamline the shared services team and free up $2 billion to $3 billion for carriers to invest in the core. According to Verizon CEO Hans Vestberg, network and telecom services.

“This is part of a larger program to capitalize on cross-functional opportunities across our businesses… [VGS] It can help you achieve significant efficiencies and reduce costs across your business. We continue to practice financial discipline, even in a highly competitive market,” Vestberg said at the company’s third quarter 2022 earnings call on Friday.

Craig Silliman, the company’s former chief administrative officer and general counsel, has been appointed president of VGS.

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Vestberg called on Verizon to maintain and grow carrier momentum in fixed wireless access and business wireless priorities moving forward.

The CEO also said Verizon continues to see strong enterprise interest in private wireless and mobile edge computing (MEC), along with strong demand for private 5G solutions. These services are built on the carrier’s “world-class” network, Vestberg said.

“In the short term, it won’t be a big return, but over time, it’s been an absolute blast for Silliman and his team to be with our customers on these large-scale turnkey projects to transform digital assets for businesses. We are building new opportunities,” he said.

The New Jersey-based company’s Basking Ridge location in the third quarter of 2022 wasn’t where Verizon wanted, but Matt Ellis, executive vice president and CFO of Verizon, said Verizon has been on track for the past two quarters. He said the actions taken across the country were gaining momentum. “We are hopeful that we can build on this momentum going into the fourth quarter,” he added Ellis.

Verizon Business reported 360,000 wireless retail postpaid net adds in Q3 2022, including 197,000 phone net adds. The result marks his fifth consecutive quarter in which Business reported a net addition of over 150,000 postpaid calls. The enterprise segment of carriers delivered its highest ever net phone add-ons, and both the SMB and public sector reported double-digit gross phone add-ons year-over-year.

Verizon Business total operating revenues, including the company’s Global Enterprise Solutions, SMB, Public Sector and Wholesale businesses, were $7.84 billion in the third quarter, up 1.9%, compared with $7.69 billion in the same period last year. % increased.

Bearing the brunt of the economic impact of the pandemic, Global Enterprise Solutions revenue was $2.55 billion in the third quarter of 2022, down 4% from $2.55 billion in the same period last year.

Meanwhile, SMB revenue increased 8.8% to $3.20 billion from $2.94 billion a year ago. The public sector continued to decline, dropping 1% to $1.53 billion during the quarter, compared with $1.54 billion last year. Wholesale revenue increased 1.2% to $661 million from $653 million in Q3 2022.

Vestberg pointed to a task order Verizon won earlier this month with the US State Department for an Enterprise Infrastructure Solutions (EIS) contract worth $1.58 billion over the next 10 years. “We are proud to be the partner of choice for global companies and the public sector,” he said of the transaction.

For the third quarter of the year ended September 30, 2022, Verizon reported operating revenue of $34.24 billion. This is a 4% increase from his $32.92 billion in Q3 2021 results. Carrier net income fell 23.3% in the quarter to $5.02 billion, compared with $6.55 billion in the same period last year. Verizon reported diluted earnings per share of $1.17 for the third quarter of 2022, down 24.5% from $1.55 for the third quarter of 2022.