The digital-subscriber-line business apparently isn’t a slam-dunk winner
after all, as Verizon Communications found out in the second quarter.
The telco’s DSL-growth numbers for the quarter came in at just 101,000, well
below the 160,000 it added in the first quarter. It marked Verizon’s worst DSL
quarter since the second quarter of 2000, when it posted just 71,000 new
It also ran counter to significant gains made by other regional Bell
operating company peers. SBC Communications Inc. had its best DSL quarter ever,
luring in 304,000 new subscribers, while BellSouth Corp. improved from its first
quarter, adding 103,000.
Verizon now claims 1.9 million DSL customers. DSL is now available to 67% of
its total 56.8 million access lines, and plans are to boost that to 80% by the
end of the year.
Overall, Verizon reversed the red ink, posting a $338 million profit compared
with a $2.1 billion net loss in the first quarter. Sales were also up, coming in
at $16.8 billion versus $16.3 billion in the first quarter.
The company also managed to pare down its debt by $3.7 billion so far this
year, with a balance now standing at $48.1 billion.