Telecom giant Verizon on Thursday said its Capex would increase to around $16.6 billion in 2013 from its earlier guidance of $16.2 billion.
Verizon’s Capex in the first half of 2013 were $7.6 billion, compared with $7.4 billion in first half of 2012.
Verizon has replaced high-maintenance portions of its residential copper network with fiber optics to provide enhanced services and to reduce ongoing repair costs.
In first half of 2013 Verizon migrated 169,000 homes to fiber, toward a target of 300,000 migrations within FiOS markets in 2013.
Focusing of 4G, Verizon expanded its 4G / LTE service coverage to 301 million people in 500 markets across the U.S. It has also strengthened focus on rural America.
“Verizon is increasing its capital spending guidance from $16.2 billion to between $16.4 billion and $16.6 billion for full-year 2013, as the company anticipates higher demand for wireless data consumption and begins deployment of AWS (advanced wireless services) spectrum in second-half 2013,” the company said.
As per an earlier estimate, AT&T’s Capex would be around $21 billion in 2013. In April 2013, AT&T, Verizon’s rival, said it would lower its capital expenditures for 2014 and 2015 to around $20 billion annually from $22 billion. However, there will be no reduction in the Project Velocity IP (VIP) broadband expansion.
China Mobile, in March 2013, said would increase Capex to 190.2 billion yuan ($30.6 billion) in 2013 from 127.4 billion yuan a year earlier.
Based on Capex, NTT, China Mobile and AT&T were the top telecom service providers in 2012. The world’s top 3 service providers by 2012 revenue were NTT, AT&T and Verizon.
Verizon Financial Result
Meanwhile, Verizon says its wireless service revenue in second quarter of 2013 increased 8.3 percent year-over-year.
The telecom operator’s wireline business rose 4.7 percent with consumer ARPU increasing 9.4 percent to $109.67.
The company posted 14.7 percent increase in FiOS revenues.
Its enterprise strategic services rose 4.8 percent.
Verizon’s revenues rose 4.3 percent to $29.8 billion.
Operating income increased 16 percent to $6.6 billion.
Verizon’s total revenues from wireless increased 7.5 percent to $20 billion. Service revenues rose 8.3 percent to $17.1 billion. Retail service revenues grew 7.8 percent year over year, to $16.4 billion.
Retail postpaid ARPA increased 6.4 percent to $152.50 per month.
