Verizon 3Q16 Earnings Call Notes

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Verizon Communications’ (VZ) Management on Q3 2016

Smartphones obviously going to be slower growth

“as we came into the year, we said that one of the top priorities we had was to protect our high quality base and that’s what you’re seeing. Look, we want to continue to grow from a net subscriber base both in phones, but as I’ve said before smartphones are going to be a slower growth for the entire industry as it gets more densified. ”

We’d do our agreement with Comcast again if we had to

“Obviously we’re under nondisclosure with Comcast on that agreement and the other cable providers, but look, I mean we knew what we entered when we bought the licenses back just several years ago. This is a wholesale agreement and as Lowell and I have repeatedly said, we would do the agreement today again if we had to. I mean, it’s a good agreement for Verizon Wireless. It is a good wholesale agreement

Big issue with 5G is scaling

“The big issue that still has to be answered quite honestly is the scaling of the technology. So for each small cell how much can each small cell deliver to how many households and still deliver a consistent 1 Gb of speed or some speed that is comparable to a broadband connection to the home. So that still has to be answered and we expect to do gain more knowledge around that in 2017 with the number of commercial trials that we’re going to launch. So at this point, that’s really all there is just talk about I’m from a 5G perspective.”

We haven’t reached any final conclusions on the Yahoo issue

“So on yahoo, look Lowell and Craig have both commented on this recently. So let me just reiterate what they have said. We are still evaluating what it means for this transaction. This was an extremely large breach that has received a lot of attention from a lot of different people. So we have to assume they will have a material impact on Yahoo. Lawyers had their first call yesterday with Yahoo to provide us information but as I understand that’s going to be a long process. So unless Yahoo comes up with different process it’s going to take some time to evaluate this. So until then we haven’t reached any final conclusions around this issue.”