Verizon Communications Inc. (VZ): Business Model Canvas [Dec-2025 Updated]

As a former BlackRock analyst, I see the core engine of Verizon Communications Inc. right now: it's a high-stakes bet where $\mathbf{\$17.5B}$ to $\mathbf{\$18.5B}$ in 2025 CapEx for 5G and fiber is being deployed to secure $\mathbf{\$19.5B}$ to $\mathbf{\$20.5B}$ in Free Cash Flow guidance, all while they try to make their $\mathbf{146.1}$ million subscribers happier with simpler plans like myPlan. Honestly, this Business Model Canvas shows the tightrope walk between infrastructure dominance and customer-centric cost transformation; you need to see the details below to understand where the next dollar comes from.

Verizon Communications Inc. (VZ) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Verizon Communications Inc. (VZ) relies on to execute its strategy, especially as it pushes fiber deeper and integrates advanced tech. These aren't just vendor relationships; they are strategic alliances that directly impact network capability and customer stickiness.

Pending Acquisition for Fiber Expansion

The planned acquisition of Frontier Communications Parent, Inc. is a massive move to accelerate fiber footprint expansion. This deal, announced on September 5, 2024, is an all-cash transaction valued at $20 billion, with each Frontier share set at $38.50 cash. This transaction is expected to close by the first quarter of 2026, subject to regulatory sign-off. The goal is to integrate Frontier's 2.2 million fiber subscribers with Verizon's existing 7.4 million Fios connections, targeting a combined base of 10 million fiber customers across 31 states, including Washington, D.C. Verizon management projects achieving at least $500 million in cost synergies by the third year post-close. This strategic move underpins Verizon's 2025 capital allocation, which saw the company raise its full-year free cash flow guidance to a range of $19.5 billion to $20.5 billion as of Q2 2025.

Satellite Connectivity with AST SpaceMobile

Verizon finalized a definitive commercial agreement with AST SpaceMobile to deliver direct-to-cell satellite connectivity, scheduled to begin in 2026. This partnership is designed to cover coverage gaps across the continental U.S. by extending Verizon's premium 850 MHz low-band spectrum into remote areas using standard, unmodified smartphones. The agreement follows successful demonstrations, including a Voice over LTE (VoLTE) call made via an AST SpaceMobile BlueBird satellite. Financial terms of this agreement were not publicly disclosed.

AI-Powered Network Optimization with Samsung

The collaboration with Samsung focuses on leveraging Artificial Intelligence (AI) for network efficiency, specifically through Samsung's AI-powered Energy Saving Manager (AI ESM) running in Verizon's commercial vRAN (virtualized Radio Access Network) environment. This system analyzes traffic patterns to dynamically power down equipment when demand is low, without hurting user experience. Field tests have shown tangible results:

• Average energy saving gain: 15% across the site.
• Maximum energy saving per sector during low traffic: up to 35%.

This initiative supports Verizon's sustainability aims, as the company plans capital expenditures between $17.5 billion and $18.5 billion for 2025, with Open RAN being a major focus area.

Content Provider Bundling

Verizon uses strategic content partnerships to enhance its mobile plan value proposition, particularly with the Disney Bundle. For customers on eligible Unlimited plans, Verizon offers the Disney+, Hulu, and ESPN+ bundle (with ads) as a perk for $10 per month. This represents a savings of $9.99 per month compared to the current standalone price of $19.99 per month for that specific ad-supported tier. New and upgrading customers on plans like Unlimited Plus or Unlimited Ultimate can get the first six months free, which equates to a savings of nearly $115 off the retail price for that initial period. Separately, the Disney+/Hulu/Max bundle (without ESPN+) had reached 2.2 million subscribers by the end of 2024.

Indirect Channel Partners

Verizon maintains a strong network of Indirect Channel Partners, including Value-Added Resellers (VARs) and Agents, managed through the Verizon Partner Network. For 2025, Verizon affirmed its commitment to this channel by increasing its investment, particularly in the co-selling program. The strategy centers on driving efficiencies and focusing on key growth areas for partners, such as broadband, Fixed Wireless Access (FWA), and POTS (Plain Old Telephone Service) replacement, all aimed at unlocking new revenue opportunities.

Here's a quick look at the financial context surrounding some of these operational areas in mid-2025:

If onboarding the Frontier fiber assets takes longer than anticipated, the realization of those $500 million synergy targets could definitely shift into 2028 or later.

Verizon Communications Inc. (VZ) - Canvas Business Model: Key Activities

You're looking at the core actions Verizon Communications Inc. is taking right now to reshape its business profile, which is all about aggressive network build-out, cost discipline, and customer convergence. Here's the quick math on what they are actively doing as of late 2025.

Aggressive 5G Ultra Wideband (C-band) network deployment to 80-90% of sites by 2025-end

Verizon Communications Inc. has been driving the C-band rollout hard. Management previously mentioned plans to deploy C-Band to 80%-90% of planned sites by year-end 2025. This massive infrastructure push is supported by a significant prior commitment, where Verizon committed close to $53 billion on C-Band spectrum, which included the purchase price and the cost to reimburse satellite service providers for clearing those frequencies.

Expanding Fixed Wireless Access (FWA) and Fios fiber broadband footprint

The broadband expansion is a clear focus area, showing tangible results in the third quarter of 2025. You saw strong momentum here:

• Total broadband connections grew to more than 13.2 million as of the end of third-quarter 2025.
• This represented an 11.1 percent increase year-over-year in total broadband connections.
• Fixed Wireless Access (FWA) added 261,000 net additions in Q3 2025.
• The total FWA base reached nearly 5.4 million subscribers by the end of Q3 2025.
• Fios Internet delivered 61,000 net additions in the third quarter of 2025, which was the best quarterly result in two years.
• Fios revenue for the quarter was $2.94 billion.

The fiber footprint expansion is also strategic, with plans to pass up to 650,000 premises annually with Fios starting in 2025. Furthermore, the pending acquisition of Frontier is expected to provide access to 29 million fiber passings.

Strategic cost structure transformation and operating expense reduction

New CEO Dan Schulman is driving an aggressive cost transformation. This isn't just talk; it involves significant workforce changes. The company planned to eliminate roughly 15,000 jobs, which is about 15% of its workforce, in its largest-ever layoff round. Additionally, Verizon planned to convert 200 company-owned retail stores to franchised locations. These actions are aimed at stabilizing margins and boosting free cash flow. For the first nine months of 2025, cash flow from operating activities reached $28.0 billion, up from $26.5 billion in the prior year period. Free cash flow for those nine months was $15.8 billion, an increase from $14.5 billion year-over-year. Verizon reiterated its full-year 2025 free cash flow guidance in the range of $19.5 billion to $20.5 billion.

Managing and servicing a total of 146.1 million subscribers (Q3 2025)

Verizon Communications Inc. was managing a very large base of customers as of the third quarter of 2025. The total customer count stood at 146.1 million. The wireless service revenue for the quarter was an industry-leading $21.0 billion. Here's a breakdown of some key subscriber metrics from that quarter:

The Consumer segment revenue for the quarter was $26.1 billion.

Integrating AI (e.g., Gemini Pro) for customer experience and network efficiency

The strategic shift includes leveraging new technologies. Management confirmed a focus on enhancing customer experience through AI-driven initiatives. This operational focus is supported by external partnerships, such as one where Reliance Jio users reportedly get 18-month free access to Google's Gemini AI Pro under a new AI partnership.

Finance: draft 13-week cash view by Friday.

Verizon Communications Inc. (VZ) - Canvas Business Model: Key Resources

You're looking at the core assets that make Verizon Communications Inc. a powerhouse in the US telecom space as of late 2025. These aren't just abstract concepts; they are billions in capital expenditures and years of spectrum acquisition baked into the network.

Extensive Wireless Spectrum Holdings, Including C-Band and mmWave Licenses

The spectrum portfolio is definitely a top-tier resource, especially after the major C-band outlay. Verizon secured an average of 161 MHz of C-Band nationwide, a massive mid-band asset acquired for $52.9 billion, which included incentive payments and clearing costs. This means they won between 140 and 200 MHz of C-Band spectrum in every market where it was available. On the millimeter-wave (mmWave) front, which powers the highest-speed 5G hotspots, Verizon has deployed more than 33,000 mmWave sites on the air. This spectrum strategy underpins their 5G Ultra Wideband service.

Nationwide 5G Ultra Wideband and 4G LTE Network Infrastructure

The physical network is the engine. Verizon's coast-to-coast coverage reaches 99% of the U.S. population, ensuring fewer dropped calls. Their 5G Ultra Wideband service is reported to cover over 280 million people. For 2025, the company maintained its Capital Expenditures guidance in the range of $17.5 billion to $18.5 billion, showing continued investment in this infrastructure.

Fios Fiber-Optic Network Assets in the Northeast US

The Fios footprint remains a crucial, high-quality asset, primarily concentrated in the Northeast and Mid-Atlantic regions. Currently, Verizon Fios provides service to 38.2 million people across 10 states. The company is actively expanding, remaining on track to deliver 650,000 new passings in 2025. Furthermore, through acquisitions like Frontier, the CEO has outlined a path to reach 40 million homes of fiber in the future.

Brand Equity and Network Quality Awards (e.g., RootMetrics, J.D. Power in 1H 2025)

The brand equity is heavily reinforced by consistent third-party validation. In the first half of 2025, Verizon achieved a significant milestone:

• America's Most Awarded Brand for Network Quality by J.D. Power for the 35th consecutive time in the 2025 U.S. Wireless Network Quality Study - Volume 2.
• Top spots in the RootMetrics 1H 2025 study for Best 5G Network, Fastest 5G Network, and Most Reliable 5G Network.
• Winning the Overall RootScore Award for best performance in 110 out of 125 cities tested in the RootMetrics 1H 2025 study.

Significant Financial Capital, with 2025 FCF Guidance of $19.5B to $20.5B

Financial strength is a key enabler for all the capital-intensive network builds and spectrum purchases. For the full year 2025, Verizon raised its Free Cash Flow (FCF) guidance to a range of $19.5 billion to $20.5 billion. This FCF is expected to comfortably cover the annual dividend bill, which is roughly $11.5-$11.6 billion, resulting in a payout ratio around 55-60% at the midpoint.

Here's a quick look at the financial context supporting these resources:

Verizon Communications Inc. (VZ) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Verizon Communications Inc. as of late 2025. It's not just about having a signal; it's about the proven quality of that signal and the flexibility built around it.

Industry-leading network speed and reliability (RootMetrics, J.D. Power 1H 2025)

Verizon's value proposition starts with its network performance, which independent testing firms consistently validate. This translates directly into dependable service for both consumers and businesses.

Verizon was named America's Most Awarded Brand for Network Quality by J.D. Power for an unprecedented 35 times in a row in the J.D. Power 2025 U.S. Wireless Network Quality Study - Volume 2. Furthermore, the 1H 2025 RootMetrics study recognized Verizon for having the Best 5G Network, Fastest 5G Network, and Most Reliable 5G Network. The company's 5G Ultra Wideband network covers more than 280 million people, and the overall network covers 99% of the U.S. population.

Here are the specific performance metrics from the 1H 2025 RootMetrics testing:

The network is definitely built for scale and consistency.

Customizable mobile plans (myPlan) with streaming and perk bundles

The myPlan structure allows customers to tailor their mobile service by adding specific value-adds, or Perks, which are priced to undercut direct subscription costs. This moves the value beyond just talk, text, and data.

Verizon Communications Inc. is offering up to 40% off top streaming services via these Perks. Customers can select from various options, often at a significant discount:

• Disney+, Hulu, ESPN+ (With Ads) bundle starts at $10/mo (saving $9.99/mo off the $19/month proposition).
• Netflix Standard with ads and ad-supported Max package is priced at $10/mo (normally $17/month).
• Walmart Plus (includes Paramount Plus) is offered for $10/mo (normally $13/month).
• YouTube Premium is available for $10/mo (normally $14/mo).

The adoption of these bundles is strong; Verizon had over 10 million perk subscriptions at the end of the first quarter of 2025, with an anticipation to reach 15 million subscriptions by the end of the year. You can get 8 of the most popular streaming services from Verizon for $50.

High-speed, no-contract Fixed Wireless Access (FWA) home internet

Verizon is aggressively pushing its FWA offering as a high-speed, no-contract alternative to traditional home broadband. This segment is a key growth driver, though the pace of additions has recently moderated.

As of Q3 2025, Verizon added 261,000 Fixed Wireless Access (FWA) subscribers, bringing the total base to nearly 5.4 million. Of those Q3 additions, 121,000 were residential customers. At the end of 2024, the median download speed for Verizon FWA was 150.47 Mbps. The top-tier plan, 5G Home Plus, can deliver up to 1 Gbps download speeds using 5G Ultra Wideband or mmWave spectrum. For capacity management, Verizon has started capping standard FWA download speeds at 300 Mbps. The company is targeting an increase of nine million FWA subscribers by the timeframe ending in 2028.

Converged offerings (mobile + home internet) for simplified billing and savings

The combination of mobile and home internet services is designed to simplify the customer experience while delivering tangible financial benefits and improving retention metrics.

Customers who bundle their mobile and home services are eligible for a $15/mo discount on their home internet bill, which can bring Verizon Home Internet plans down to as low as $35/mo. This convergence strategy is proving effective for retention; Verizon observed a churn rate nearly 40 percent lower for customers who have both fiber and a mobile line. In Q1 2025, the vast majority of broadband customers who signed up were on a converged offering. Combining services also yields a 50% reduction in mobility churn when fiber is involved. Bundled customers can also receive up to $10/mo credit toward entertainment perks.

Enterprise-grade private 5G networks and advanced business security solutions

For the Business segment, Verizon Communications Inc. is focusing on deploying dedicated, secure, low-latency private 5G networks to drive enterprise digital transformation and operational gains.

The funnel for private 5G and edge compute exploded by a triple-digit percentage in new business during 2024, signaling strong momentum into 2025, where private wireless is expected to move into the mainstream. The company touts over 30+ years of experience managing complex customer networks worldwide. Specific enterprise value propositions include enabling applications like AR/VR employee training, cashierless checkout, and real-time inventory tracking using RFID tags and sensors. Globally, revenue from private cellular networks is forecast to reach $12.2 billion by 2028, representing a 114% increase from 2025 levels. Verizon's private 5G solutions are positioned to capture a portion of this market, which is expected to be valued at $5.6 billion in 5G revenue by 2028.

Verizon Communications Inc. (VZ) - Canvas Business Model: Customer Relationships

You're looking at how Verizon Communications Inc. keeps its massive customer base engaged and loyal in late 2025. It's a mix of high-tech automation and targeted human support, which is necessary given the scale of their operations. Honestly, the numbers show a clear tension between what the business thinks is efficient and what the customer actually experiences.

Automated and AI-driven customer service for scale and efficiency

Verizon Communications Inc. is heavily invested in using Artificial Intelligence to handle customer interactions for efficiency, but this strategy has a measurable customer satisfaction gap. According to the 2025 CX Annual Insights report, human-led interactions achieve an 88% satisfaction rate, while encounters primarily handled by AI systems only reach 60% satisfaction. This 28-percentage-point difference is significant.

The biggest friction point is access to a person. A full 47% of consumers cite the inability to quickly reach a live human agent as their main frustration with automated systems. Furthermore, personalization efforts using AI haven't fully landed well; 30% of consumers reported that personalization actually detracted from their experience, compared to only 26% who felt it improved it. To be fair, executives see internal benefits, but 65% of them report that data privacy regulations limit their ability to fully leverage AI for personalization. Still, 44% of brands, including Verizon Communications Inc., plan to place equal investment priority on both AI-driven and human-driven CX improvements going forward.

High-touch, dedicated account management for Enterprise and Government clients

For the Enterprise and Government segments, the relationship model shifts sharply away from automation. For large corporations managing big deployments, having dedicated account managers or 24/7 technical support is considered invaluable. This high-touch approach supports the core business, which saw third quarter consolidated revenue hit $33.8 billion, with wireless service revenue growing 2.1% year-over-year. Management has explicitly committed to a 'customer-first culture' to drive disciplined, profitable growth, suggesting that these key accounts receive the necessary personalized attention to stem account declines, which were a noted concern.

Retention focus via the 'Verizon Value Guarantee' (3-year price lock)

To directly combat churn and strengthen long-term relationships, Verizon Communications Inc. introduced a major value commitment. The 'Verizon Value Guarantee,' implemented in April 2025, provides a three-year price lock on the core monthly plan prices for calling, data, and texting for customers on myPlan and myHome network plans. This is a strategic pivot aimed at giving customers predictability. However, you have to read the fine print; the lock only covers the base rate and specifically excludes 'taxes, fees, surcharges, additional plan discounts or promotions, and third-party services.' For example, Verizon Communications Inc. had recently ratcheted up the "Administrative and Telco Recovery Charge" from $3.30 to $3.50 a month for each voice line. As an added incentive for new myPlan subscribers, the company offers a free phone with the trade-in of any Apple, Google, or Samsung device, regardless of condition.

Digital self-service via the My Verizon app and online portals

Digital self-service is the primary channel for routine consumer interactions, centered around the My Verizon app. This app consolidates management for both Mobile and Home Internet accounts, including 5G Home and Fios. Mobile customers use it to view their Simplified Bill, schedule Auto Pay, and make secure payments. For immediate help, the app features a voice-enabled Verizon Assistant available 24/7 for chat support, troubleshooting, and account details. The app is a major touchpoint, evidenced by its 1.25 million reviews on Google Play. Data collection within the app is extensive, with reported types including Location, Personal info, and 9 others.

Here's a quick look at the satisfaction disparity in service channels:

Customers definitely prefer self-service for routine tasks like bill payments and plan changes, which is why the digital tools are so heavily used.

Finance: draft 2026 projected customer service cost savings from AI by end of Q1.

Verizon Communications Inc. (VZ) - Canvas Business Model: Channels

You're looking at how Verizon Communications Inc. gets its products and services into the hands of customers as of late 2025. This is a multi-pronged approach, blending physical presence with digital reach, and it's currently undergoing a significant structural shift to manage costs.

Verizon-owned retail stores and kiosks across the US

The physical footprint is being actively re-evaluated. As of November 2025, Verizon Communications Inc. announced plans to convert 179 corporate-owned retail stores into franchised operations and close one store. This move is part of a larger cost-cutting and restructuring effort. Before this announcement, the company maintained a substantial network of company-owned locations, which serve as primary points for device sales, plan changes, and customer support.

The channel strategy is clearly shifting away from direct corporate ownership in some retail locations. This change is intended to streamline the operating model. The retail channel's performance is often tied to device upgrade cycles and promotional activity, which remains fierce against rivals.

Direct online sales via Verizon.com and the My Verizon app

Digital channels are a critical component, especially given the industry trend showing significant shifts toward online purchasing. While specific direct online sales revenue is not broken out separately from total Consumer revenue, the focus on digital experience is clear. For instance, the Consumer segment reported a Consumer wireless postpaid Average Revenue Per Account (ARPA) of $147.91 in the third quarter of 2025, which reflects the success of segmented digital offerings like myPlan. The company is focused on mobile experiences, as mobile platforms are the primary interface for many customers, even when interacting with physical retail concepts.

The company's overall wireless service revenue for the Consumer segment in the third quarter of 2025 was $17.4 billion. This revenue is supported by digital self-service capabilities within the My Verizon app.

Third-party retailers (e.g., Best Buy) and authorized dealers

Third-party distribution, including authorized dealers and major electronics retailers, extends Verizon Communications Inc.'s reach beyond its owned footprint. These partners are essential for volume sales and market penetration, especially for consumer electronics and new customer acquisition. The performance of these channels is implicitly captured within the overall Consumer wireless service revenue figures, which stood at $17.4 billion in the third quarter of 2025. The success of these indirect sales points is vital for achieving the full-year guidance for total wireless service revenue growth, projected between 2.0% and 2.8% for 2025.

Indirect Channel Partners for Business and Enterprise sales

The Business segment relies heavily on indirect partners to reach small, medium, and large enterprises. This channel supports the sale of complex solutions, including network services, IoT, and private networks. The total revenue for the Verizon Business segment in the third quarter of 2025 was $7.1 billion. The operating income for this segment, however, saw a year-over-year increase of 12.7% to $637 million in the same quarter, suggesting channel efficiency or margin improvement despite a revenue decrease of 2.8%.

The Business segment reported 110,000 wireless retail postpaid net additions in the third quarter of 2025. These partners are crucial for delivering offerings like the My Biz Plan for small and medium-sized businesses.

Telesales and dedicated corporate sales teams

Dedicated corporate sales teams handle high-value, complex Enterprise accounts directly, while telesales support both Consumer and Business segments. These direct sales forces are responsible for selling solutions that drive the Business wireless service revenue, which was $3.6 billion in the third quarter of 2025. The dedicated teams manage the customer relationships that result in the Business segment's Segment EBITDA of $1.7 billion for the third quarter of 2025.

The overall channel strategy is being refined to reduce costs, as evidenced by the planned elimination of 13,000 to 15,000 jobs, which is about 15% of the nonunion workforce, to streamline the operating model and fund growth investments.

The following table summarizes the key revenue contributions from the two primary reporting segments, which are heavily influenced by the channel strategies employed:

The Consumer segment's revenue was $26.1 billion in the third quarter of 2025, a 2.9% increase year-over-year. The Business segment's revenue was $7.1 billion in the same period.

You should track the success of the franchise conversions closely, as they represent a material change in the direct retail channel management.

Verizon Communications Inc. (VZ) - Canvas Business Model: Customer Segments

You're looking at the specific groups Verizon Communications Inc. targets for service delivery as of late 2025. It's a mix of high-value wireless users, growing home internet customers, and the enterprise space.

Consumer Postpaid

This segment targets high-quality, affluent customers, defined in part by an average FICO around 720. For the third quarter of 2025, the Consumer wireless retail postpaid average revenue per account (ARPA) stood at $147.91, showing a 2.0 percent year-over-year increase. Still, the segment saw 7,000 wireless retail postpaid phone net losses in Q3 2025, while the overall retail postpaid churn rate was 1.12 percent.

Consumer Prepaid

Verizon addresses the value-conscious market through its premium prepaid offerings, Visible by Verizon and TracFone Wireless. In Q3 2025, the Consumer segment added 47,000 wireless retail core prepaid net additions, marking the fifth consecutive quarter of positive growth here. The prepaid average revenue per user (ARPU) reached $32.70 for the quarter. At the time of its acquisition, TracFone and its family of brands represented about 21 million subscribers, though it has since lost about 2 million subscribers.

• Visible by Verizon
• TracFone Wireless
• Brands like StraightTalk and Total Wireless are part of this portfolio.

Small and Medium Businesses (SMBs)

SMBs are a key focus for simple connectivity solutions, including Fixed Wireless Access (FWA). Verizon Business reported wireless service revenue of $3.6 billion in Q3 2025, with a retail postpaid churn rate of 1.56 percent. The business segment added 110,000 wireless retail postpaid customers in the quarter.

Large Enterprise and Government Clients

These clients require more complex, custom networking and security solutions. For Q3 2025, total Verizon Business revenue was $7.1 billion, a year-over-year decrease of 2.8 percent, but operating income for the segment grew by 12.7 percent.

Residential Broadband Users

This group is served by both Fios fiber and FWA. Overall, Verizon's total broadband connections grew to over 13.2 million connections as of the end of Q3 2025, an 11.1 percent increase year-over-year. The total broadband net additions for the quarter were 306,000.

Here's a quick look at the Q3 2025 broadband and wireless subscriber activity:

The total U.S. mobile network base for Verizon Communications Inc. stood at 146.1 million subscribers as of June 30, 2025.

Verizon Communications Inc. (VZ) - Canvas Business Model: Cost Structure

High Capital Expenditures (CapEx) for 2025

Verizon Communications Inc. has a projected capital expenditure range for the full year 2025 of $17.5B to $18.5B. This spending supports the continued buildout of 5G infrastructure, Fixed Wireless Access (FWA) deployments, and the Fios fiber network.

Significant debt servicing costs on total unsecured debt

The total unsecured debt for Verizon Communications Inc. stood at $119.7 billion as of the end of third-quarter 2025. The net unsecured debt at that time was $112.0 billion. The ratio of net unsecured debt to consolidated adjusted EBITDA was 2.2 times at the end of Q3 2025. Quarterly interest expense, a direct cost of servicing this debt, ran around $1.6 billion in Q3 2025, specifically reported as $1.66B for the fiscal quarter ending in September of 2025.

Spectrum license acquisition and maintenance costs

• Verizon announced an intent in late 2024 to purchase spectrum licenses from UScellular for a total of $1.0 billion.
• The company is still in negotiations with EchoStar for a paired AWS-3 spectrum license for an undisclosed amount.
• Full-year 2025 financial guidance does not factor in any new spectrum spending.

Network operating expenses (cell site leases, utilities, maintenance)

Total operating expenses for the twelve months ending September 30, 2025, were reported at $105.815B. A more granular look at the first quarter of 2025 shows the following expense components (amounts likely in millions):

The reported Operating Expenses for the fiscal quarter ending in September of 2025 were $7.71B.

Cost of Equipment (COGS) for device sales and subsidies

The cost structure includes significant expenses related to the equipment sold to customers, which is reflected in the Cost of Goods Sold (COGS) components. For the third-quarter 2025, wireless equipment revenue was $5.6 billion. The Cost of wireless equipment for the first quarter of 2025 was reported as $26,787 (likely in millions).

Verizon Communications Inc. (VZ) - Canvas Business Model: Revenue Streams

You're looking at how Verizon Communications Inc. actually brings in the money, which is crucial for understanding their valuation, especially with the new CEO signaling big shifts. Honestly, the revenue streams are still heavily anchored in the core wireless business, but the fixed-line and enterprise services are where the strategic battles are being fought right now.

The bedrock of Verizon Communications Inc.'s revenue is its wireless offering. For the third quarter of 2025, the company reported industry-leading Wireless Service Revenue of $21.0 billion, which was up 2.1 percent year-over-year. This sticky, recurring revenue is what the market values most highly. This total is composed of both consumer and business service revenues.

Here's a quick look at the primary components of the wireless top line for Q3 2025:

The Wireless Equipment Revenue, covering device sales and financing arrangements, also showed solid growth, hitting $5.6 billion in Q3 2025. This suggests customers are still upgrading or financing new hardware, which helps the top line even if service revenue growth is more modest.

Next up, you have the fixed connectivity side, which is seeing significant investment and growth, particularly with Fixed Wireless Access (FWA). This is where you see the monthly subscription fees for broadband.

• Fios Internet revenue for Q3 2025 reached $2.94 billion.
• The FWA annualized revenue has surpassed $3 billion.
• The total broadband base grew to over 13.2 million connections, an 11.1 percent increase year-over-year.
• FWA added 261,000 net subscribers in the quarter, bringing the total FWA base to nearly 5.4 million.
• Fios Internet added 61,000 net subscribers in the quarter.

For the Enterprise solutions revenue, which bundles IoT, private 5G, security, and managed services under the Verizon Business segment, the picture is more complex. While Business wireless service revenue grew, the overall Business segment revenue declined. Specifically, the Enterprise and public sector revenue component fell to $3.31 billion in Q3 2025, down 6.4 percent year-over-year, reflecting the ongoing shift away from traditional wireline services.

Finally, don't forget the recurring revenue from device protection and insurance plans. Verizon Communications Inc. actually reclassified these revenues from 'other revenue' into 'wireless service revenue' starting in the first quarter of 2025, so those amounts are now baked into the $21.0 billion service revenue figure you see reported. It's a subtle accounting change, but it means that number is cleaner now, reflecting more of the high-margin recurring elements of the core offering.