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New Verizon CFO says company 'on the right track'

Published 11/01/2023, 12:35 PM
Updated 11/01/2023, 01:55 PM
© Reuters. FILE PHOTO: The Verizon logo is seen on the 375 Pearl Street building in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly/File Photo
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By David Shepardson

(Reuters) -Verizon Communications on Wednesday said it was naming Tony Skiadas as chief financial officer as it works to rollout its 5G network and pay down debt.

Skiadas, a 27-year veteran at Verizon (NYSE:VZ), was named interim CFO of the telecommunications company in March as part of a major leadership restructuring.

Last week, Verizon raised its annual free cash flow forecast as its promotional offers and high-speed 5G network drew more subscribers than expected in the third quarter.

"We think we're on the right track in terms of continuing to show improvements both in volumes and in profitability," Skiadas said in an interview, adding that one focus will be on continuing to pay down debt, including $2.6 billion in the third quarter.

Verizon CEO Hans Vestberg said in an email to employees on Wednesday that Skiadas "is uniquely positioned to steer us through the current economic volatility and our industry's changing landscape."

Another key issue on the new CFO's agenda is continuing deployment of Verizon's 5G using C-Band spectrum it won during a 2022 spectrum auction, "which is the future of our business," Skiadas said.

Verizon paid $52.9 billion for a large block of C-Band spectrum, including incentive payments and clearing costs, to reach more than 100 million Americans with faster service.

"It gives customers a much better experience," Skiadas said.

Verizon is "about half-way through the network build out in terms of cell sites. We still have to outfit the rest of the network," which will take a couple of years, he said.

© Reuters. FILE PHOTO: The Verizon logo is seen on the 375 Pearl Street building in Manhattan, New York City, U.S., November 22, 2021. REUTERS/Andrew Kelly/File Photo

After extensive talks with the Federal Aviation Administration (FAA) and airlines raised concerns about potential interference of 5G with sensitive aircraft electronics, Verizon in 2022 agreed to temporarily not use all of the spectrum at full power near airports.

Verizon won full access to its C-Band spectrum this summer under an agreement with the FAA, and after spectrum was cleared by satellite companies, which allows much faster service in many places.

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