Sometimes a year over year revenue decline is “self induced.” That isn’t entirely why Verizon fixed network revenue dropped about $300 million, year over year, but Verizon argues much of the decline is intentional.
Verizon estimates that about 65 percent of the overall wireline revenue decline in its second quarter of 2012, compared to the second quarter of 2011, was the result of its own deliberate actions to improve profitability. Examples include the de-emphasis of drop-ship customer premises equipment, the continued exit from certain international wholesale routes and contracts, decommissioning end of life products like ATM, frame relay and IP VPN, no longer offering dry-loop DSL or selling DSL in FiOS markets, and exiting non-strategic product lines by calling cards and payphones, says Verizon CFO Fran Shammo.