Verizon (VZ) CFO Shammo: Enterprise Isn't Getting Better, Dividend Not in Trouble

Verizon Communications (NYSE: VZ) executive vice president and CFO Fran Shammo is speaking at the Deutsche Bank 2013 dbAccess Media, Internet, & Telecom Conference today.

Some observations and comments Shammp made are listed below (not necessarily verbatim):

• Shammo sees Verizon's wireless segment with 2.65 devices per account;
  
  
• Nothing new to talk about with respect to its Verizon Wireless venture with Vodafone (Nasdaq: VOD);
  
  
• New customers came in less than the company device average., but end up getting to device average after three to six months;
  
  
• Thinks its good for the industry that Sprint (NYSE: S) in getting additional investment and T-Mobile/MetroPCS (NYSE: PCS) are merging;
  
  
• Not going to compete on low-end plans, like 'all you can eat' talk and text. Rather, the company is going for customer who wants the best network and willing to pay more of a premium for that service;
  
  
• Shammo thinks Verizon can be "more aggressive" with 3G platform in terms of pricing, plans;
  
  
• He doesn't believe upgrades will jump this year;
  
  
• For the first time ever you could get a free iPhone following the launch of iPhone 5. Was good for Verizon's overall volume;
  
  
• Thinks Microsoft (Nasdaq: MSFT) Windows Phone will gain a better hold in the industry. Also was positive on BlackBerry's (Nasdaq: BBRY) BlackBerry 10 operating system;
  
  
• More and more operating systems will lower prices on devices. Sees subsidies decreasing over the next few years due to more competition;
  
  
• Will get Voice-Over-LTE (VoLTE) by end of 2013, early 2014;
  
  
• Subsidies will be reduced when taking CDMA chip out of smartphones and having a pure LTE device.
  
  
• No incentives on handsets for sales employees;
  
  
• Doesn't think things are getting better in enterprise;
  
  
• Confident in ability to expand wireline margins;
  
  
• Very confident in cash flow, dividend is not in trouble;
  
  
• No dividend policy at Verizon Wireless. Policy will be addressed in December;
  
  
• Content costs: Now Verizon has scale versus when the company got into the segment. Shammo now sees gap closing, versus paying a 30 to 35 percent premium at the start. Retransmission fees have also equalized;
  
  
• Dish (Nasdaq: DISH) spectrum doesn't "fit real well" in Verizon's portfolio. Verizon's "sweet spot" is at the 700-MHz level.

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