Verizon says Google data centre deal tops $1 billion

TL;DR

• Verizon said in its Q2 earnings call it signed a Google deal worth more than $1 billion for dark fibre connectivity to data centres.
• CEO Dan Schulman said Verizon expects to announce additional agreements before the end of the year worth multiple billions of dollars in revenue over the next several years.
• Verizon reported 184,000 postpaid phone net additions, 550,000 mobile and broadband net additions, $34.4 billion in total revenue, and $3.9 billion in net income for the quarter.

Verizon said in its Q2 earnings call that it signed a deal worth more than $1 billion with Google for data centre connectivity. CEO Dan Schulman said Verizon will provide dark fibre connectivity for Google's data centres. Verizon did not disclose further details of the Google partnership in its second quarter earnings statement.

Dan Schulman said Verizon expects to announce other agreements before the end of the year that together will be worth multiple billions of dollars in revenue over the next several years. In the same earnings call, he said Verizon's recent consumer plan changes and loyalty rewards programme were contributing to lower churn and lower customer acquisition and retention costs.

Verizon reported 184,000 postpaid phone net additions in the quarter, which it said was its highest gain in that segment in the past five years. Mobile and broadband net additions reached 550,000, up 230,000 year-on-year. Total revenue was $34.4 billion, while mobility and broadband service revenue rose 2.8% to $23.4 billion. Net income fell 22.9% to $3.9 billion, driven primarily by $1.8 billion in pre-tax special items, including a $746 million loss tied to its international wireline and managed network services business.

Related questions

• What is Verizon providing to Google under the more than $1 billion agreement?
• How many postpaid phone net additions did Verizon report in Q2?
• What were Verizon's total revenue and net income for the quarter?