Verizon makes money from EV-DO

Telcoms reports on Verizon’s Q3 earnings:

The company now counts 21.6 million data customers, a 48.1% increase compared with a year ago, with data services for the quarter climbing to 8.4% of service revenues, or US$613 million, as sales of EV-DO data services to businesses and consumers continued to gain.

Verizon’s multi-part strategy seems to be working for them:
1. Decrease voice pricing (free in-network calling, etc) in line with the competition.
2. Keep the handset locked in the walled garden and continue to milk subscribers for BREW subscription revenue.
3. Build out a broadband wireless data network.

As frustrating as their handset strategy may be to consumers and content providers, there is some logic in what they’re doing. And Verizon Wireless combined with Verizon FIOS (which I can’t wait to get) will create the killer broadband network.

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