Driven largely by gains in its wireless and data businesses, Verizon Communications' revenue was up 5.5% year over year in the fourth quarter of 2007, and net income was up slightly.

Verizon on Monday reported revenue of  $23.8 billion for the fourth quarter, which ended Dec. 31, up from $22.6 billion in the fourth quarter of 2006. Verizon's net income rose from $1.03 billion to $1.07 billion this past quarter.

Earnings per share was $0.37, or $0.62 before one-time items, matching consensus earnings expectations by analysts polled by Thomson Financial. However, analysts had expected revenue of nearly $24 billion for the quarter.

Not counting one-time charges, operating income dropped 0.6%, to $3.4 billion. One-time items included severance packages for layoffs that will continue through 2008, and a spin-off of wireline access lines in parts of New England.

Verizon reported "strong growth in sales of all our strategic products," Verizon Chairman and CEO Ivan Seidenberg, said in a statement. "We see significant opportunities to grow revenues and expand our leadership in wireless and broadband markets, while reducing operating expenses."

Verizon's revenue for the year was $93.5 billion, up by $5.3 billion from 2006.

Verizon focused on growth in a couple of key areas, including its wireless business.

Verizon Wireless' customer numbers increased 11.3% from the fourth quarter of 2006, to a total 65.7 million, the company said. Wireless revenue for the quarter was $11.4 billion, up 13.3% from a year ago. Verizon Wireless added 2 million customers during the quarter.

Wireless data revenue was particularly strong, said Doreen Tobin, Venison's chief financial officer. Wireless data revenue grew by 65% in 2007, she said during a conference call.

"We see enormous potential for growth in wireless data for years to come," she said.

Total wireless revenue grew 15.3% in 2007, to $43.9 billion for the whole year. "We have a proven business model," Tobin said. "These results are further evidence of great execution, sustainable growth and strong cash generation."

In Verizon's data business, the company added 245,000 Fios fiber-based Internet customers, and 226,000 Fios television customers. The company added a total of 264,000 broadband customers in the quarter, including Fios and DSL (digital subscriber lines). Data revenue increased 12.8% to $4.8 billion.

The IDG News Service is a Network World affiliate.