Analysis: Verizon wireline business 'lags' other providers

Even as management has "done some interesting things with FiOS services," Verizon's (NYSE: VZ) overall wireline business "lags the major wireline operators such as AT&T (NYSE: T), Comcast (NASDAQ: CMCSA) and Cablevision (NYSE: CVC)," a Seeking Alpha analysis has concluded.

Verizon will announce what the analysts predict will be "solid" first quarter earnings April 24 based primarily on conclusions surrounding Verizon's position within the wireless space and "the innovations the management made in the wireline business."

There are, of course, concerns. In wireless, Verizon could see a serious threat from Sprint (NYSE: S), especially if that carrier purchases T-Mobile US (NYSE:TMUS). In wireline, the problem is what Verizon plans to do with FiOS and the oncoming threat posed by Google's (NASDAQ: GOOG) expanded presence with ultra high-speed/TV offers in Verizon markets.

The report found encouraging news in the rollout of FiOS Quantum TV, which offers enhanced DVR features, and the company's willingness to invest in wireline telecommunications infrastructure. Cautions included the belief that "there is significant scope for Google to increase the scope of its backward-integrated operations."

Overall, Seeking Alpha concluded that Verizon will continue to accumulate increased revenue from the wireless and FiOS businesses and will remain a "cash cow" with improving financial performance and position.

For more:
- Seeking Alpha has this analysis

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