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SBC already the largest Telecom in US
From: David Farber <dave () farber net>
Date: Mon, 31 Jan 2005 07:58:10 -0500
_______________ Forward Header _______________ Subject: SBC already the largest Telecom in US Author: Daniel Berninger <dan () danielberninger com> Date: 31st January 2005 7:03:31 am Dave, For IP if of interest. SBC's deal acquiring AT&T's (http://sbc.merger-news.com) will be getting lots of coverage, but everyone seems to have missed the fact that SBC is already the largest carrier in the US - not Verizon. An apples-to-apples comparison in Q404 reveals SBC as the biggest US carrier even though the market grants Verizon a 25% premium over SBC. Confusion about the relative size of Verizon and SBC arises because Verizon reports 100% of Verizon Wireless revenues as a part of the parent company's revenues. Verizon addresses the fact of Vodafone's 45% stake as a minority interest expense further down on the income statement. SBC reports 0% of Cingular's revenues as a part of the part company's revenues. It addresses the fact of its 60% stake in Cingular as "other income" further down on the income statement. Verizon boosts its top line by the full $27bn of Verizon wireless's revenue even though Verizon only owns 55% of Verizon Wireless. SBC's top line revenue number reflects only the wireline operating units. The two companies have roughly the same number of access lines (SBC 52mn, Verizon 53mn). SBC has proportionally more wireless customers (60% of 49mn) than Verizon (55% of 44mn.) SBC has more LD customers (20.9mn versus 17.7mn), more DSL customers (5.1mn versus 3.6mn), and greater data revenue ($11bn verus 8bn). Both companies have similar total debt (SBC 42bn versus Verizon 40bn), but SBC has a significantly smaller Deferred Tax Liability ($15.5bn versus 22.5bn.) SBC's acquisition of AT&T will boost its revenue even further, but you can expect Verizon to get back into the game by acquiring Sprint. Best regards, Dan ........................................................ Daniel Berninger VP, Senior Analyst Tier1 Research v: 202.250.3838 e: dan () tier1research com w: www.tier1research.com ------------------------------------- You are subscribed as interesting-people () lists elistx com To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
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- SBC already the largest Telecom in US David Farber (Jan 31)