From the desk of Bruce Kushnick:
Since Ivan Seidenberg feels so strongly that Verizon needs relief, let’s look at the record.
In 2000, Verizon’s domestic telecom expenditures were $12.1 billion
NOW, in 2005,
Verizon is claiming to be spending all of this money on FIOS, its latest fiber to the home plan.
Yet its total domestic telecom expenditure in 2005 was $8.3 billion.
2000 2005 2004
Revenue $64,707 $ 75,112 $71,283
Cap spending total (17,633) 15,324 $ $13,259
Telecom $12,100 $ 8,267 $ 7,118
Depreciation ` $ 8,801
Click below for the meaning:
But here’s the critical issue… If’ I’m a local subscriber and some of the funds are now being moved out of state or on some fiber project
that I may never want or need, then the actual costs of maintaining
the networks in my town has dramatically fallen… not to mention
all of the construction costs.
In 1984, almost all of Verizon construction budget went to upgrades to
the local plant for the monopoly customer, now…..they are currently writing off more than they are putting into the ground.
It is impossible to tell from the annual reports what % of money is being spent
on their fiber, DSL, etc. vs traditional phone.
Notice, too, that Verizon will only give their combined earnings. Regarding 2006 capital spending, the company reiterated previous guidance of from $15.4 billion to $15.7 billion, excluding capital related to Verizon’s recently closed merger with MCI, Inc. Verizon announced today that, with MCI, total 2006 capital spending is expected to be from $17.0 billion to $17.4 billion.
