More Customers and Lower Costs for Verizon Wireless

Verizon Wireless says that it has improved its expectation for this year, adding more than 4.5 million net retail customer during 2003. Previous guidance, announced two months ago, was for more than 4 million.

Verizon expects 2003 capital expenditures to be in the range of US$12 billion to US$12.5 billion, a US$1 billion reduction from the high end of previous guidance of US$12.5 billion to US$13.5 billion. Investments in wireless remain as previously targeted, with demand-driven declines in Domestic Telecom investment due to decreases in access lines and other reductions due to the sale of the company's stake in Mexican wireless carrier Grupo Iusacell and lower capital spending at subsidiaries. Verizon is reiterating its year-end net debt target of US$46 billion to US$47 billion. The company began the year with a target of US$49 billion to US$51 billion and revised it in July.

Verizon has also announced that, under a program to reduce the workforce, voluntary separation incentives have been made available to most union and management employees. The company expects to take a severance charge for these separations in the fourth quarter."

Posted to the site on 24th September 2003