Verizon Wireless added a net of 2.2 million total customers, including 1.2 million retail customers, and reported increased data revenue in the fourth quarter of 2009.

Last year, Verizon Communications Inc. focused on expanding wireless data?data revenues were up 45.9 percent in the fourth quarter?and set the stage to deploy a nationwide 4G network?LTE?later this year. The company said that Verizon Wireless had 87.5 million retail customers at the end of the year, up 25 percent from year-end 2008, and 91.2 million total customers, up 26.6 percent from year-end 2008, making it the No. 1 carrier in the U.S.

?Growth in Verizon Wireless data revenue is very impressive and is being driven by continuing consumer appetite for both mobile messaging via SMS and MMS, and also mobile data usage such as browsing,? said Nitesh Patel, senior analyst of global wireless practice at Strategy Analytics, Milton Keynes, England.

Verizon Wireless said that  its customer base moved more toward data-centric devices and services, and that it is successfully integrating Alltel operations and capturing merger synergies.

In the fourth quarter 2009, Verizon?s total operating revenues grew 9.9 percent to $27.1 billion, compared with the fourth quarter 2008.

This includes revenues from Alltel, which Verizon acquired in January 2009.

For 2009, annual operating revenues totaled $107.8 billion.

Wireless growth continues
In the fourth quarter 2009, Verizon Wireless continued to grow its retail, non-wholesale customer base.

The company added 1.2 million retail net customers in the quarter, almost all postpaid, and 4.6 million retail net customers in the full year, both excluding acquisitions and adjustments.

The company had 87.5 million retail customers at the end of the fourth quarter, an increase of 25 percent year-over-year and 5.7 percent on a pro forma basis.

The company also added a million reseller customers in the fourth quarter, bringing its total number of customers at the end of the quarter to 91.2 million, an increase of 26.6 percent year-over-year and 7.0 percent on a pro forma basis.

Retail postpaid churn was 1.06 percent and total retail churn was 1.44 percent. Total churn was 1.42 percent.

Retail service revenues in the quarter totaled $13.2 billion, up 22.5 percent year-over-year and 5.2 percent on a pro forma basis.

Service revenues in the fourth quarter were $13.5 billion, up 22.5 percent and 5 percent on a pro forma basis.

Total revenues were $15.7 billion, up 22.5 percent year-over-year and 3.1 percent on a pro forma basis.

Full-year revenues were $62.1 billion, up 25.9 percent and 6.1 percent on a pro forma basis.

Q4 highlights
At the end of 2009, retail customers?both postpaid and prepaid?represented 96 percent of the company?s base.

Data revenues of $16 billion for the full year were up 31 percent over 2008 on a pro forma basis.

In the fourth quarter, data revenues were 31.9 percent of all service revenues, up from 26.5 percent in the fourth quarter 2008 on a pro forma basis.

In December, the company updated specifications for wireless devices that will run on its LTE 4G (Long Term Evolution, fourth generation) network, which ultimately will connect a full range of electronics and machines, and enable a new class of services such as online gaming, media sharing and video entertainment.

Verizon Wireless plans to launch its 4G network in 25-30 markets in 2010 and cover virtually all of its current nationwide 3G footprint by the end of 2013.

As part of its strategic partnership with Google, Verizon Wireless introduced two Android-based devices in November: the Droid by Motorola and the Droid Eris by HTC.

Other 3G smartphones launched during the fourth quarter include the BlackBerry Storm2 and BlackBerry Curve 8530, both with built-in WiFi, and the Samsung Omnia II powered by Windows Mobile 6.5.   

During the fourth quarter, Verizon Wireless customers sent or received more than 162 billion text messages.

Customers also sent more than 4 billion picture/video messages and completed more than 38 million music and video downloads.

?SMS, photo and video messaging volumes?both sent and received?almost doubled in 2009,? Mr. Patel said. ?In contrast, the number of video and music downloads through its own branded V-Cast video and music services stalled at 164 million downloads, highlighting some of the challenges faced by carriers in driving their own media businesses as smartphones help to drive the trend towards off-portal media consumption.

?There is much greater awareness across all consumers about mobile media and content thanks to smartphones like the iPhone,? he said. ?It will be interesting to see whether or not Verizon Wireless' mandatory requirement for a data plan for feature phones turns that segment of user away.

?We are definitely looking to see this in its future numbers, since this only came in a week ago.?