Wireless growth helping Verizon slog through rough economy

Wireless growth is helping Verizon struggle through a rough economy and a steep decline in its wireline business.

By most measures, 2009 was not a good financial year for Verizon.

The carrier's overall earnings in 2009 dropped to $10.3 billion, a 17% decrease from the $12.6 billion it posted in 2008. This decline in earnings was most severe in the fourth quarter of 2009, as the company's $1.1 billion income marked a whopping 62% drop from the $2.9 billion net income the company posted in the fourth quarter of 2008. Revenue rose 10.7% to $107.8 billion.

What's Verizon Wireless up to?

But through all this, there has been a consistent bright spot that has helped Verizon slog through tough economic times, as the company's wireless business has managed not only to hold steady but to thrive in the midst of a recession. In its fourth-quarter earnings report released Tuesday, Verizon said that it added more than 19 million wireless subscribers to its ranks in 2009, bringing the carrier's total number of wireless subscribers to 91 million. Additionally, the wireless business posted an operating income of $17.5 billion in 2009, up 25% from the $14 billion operating income the company posted in 2008.

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By most measures, 2009 was not a good financial year for Verizon.

The carrier's overall earnings in 2009 dropped to $10.3 billion, a 17% decrease from the $12.6 billion it posted in 2008. This decline in earnings was most severe in the fourth quarter of 2009, as the company's $1.1 billion income marked a whopping 62% drop from the $2.9 billion net income the company posted in the fourth quarter of 2008. Revenue rose 10.7% to $107.8 billion.

What's Verizon Wireless up to?

But through all this, there has been a consistent bright spot that has helped Verizon slog through tough economic times, as the company's wireless business has managed not only to hold steady but to thrive in the midst of a recession. In its fourth-quarter earnings report released Tuesday, Verizon said that it added more than 19 million wireless subscribers to its ranks in 2009, bringing the carrier's total number of wireless subscribers to 91 million. Additionally, the wireless business posted an operating income of $17.5 billion in 2009, up 25% from the $14 billion operating income the company posted in 2008.

The big reason for the large add in net wireless customers came from Verizon's merger with Alltel Wireless, which the FCC approved late in 2008. That deal gave Verizon 13 million new subscribers on its network and allowed Verizon to become the largest wireless carrier in the United States.

But while Verizon's wireless segment posted strong numbers throughout 2009, its wireline business plummeted steeply.

Overall, Verizon's wireline subscribers dropped from 21 million in 2008 to 18 million in 2009, a drop of 12%. The company's wireline operating income in 2009 checked in at $2 billion, a 49% decrease from the $3.8 billion net income it posted in 2008.

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