Verizon (NYSE: VZ) isn't seeing its largest enterprise business customers making major investments in new technology transitions or platforms, despite the stability of the segment.
Speaking to investors during the during the 44th Annual J.P. Morgan Global Technology, Media and Telecom Conference, Verizon CEO Lowell McAdam said that while the enterprise market is stable, business leaders are being cautious.
"On the enterprise side, I think there's a stability that we haven't probably seen over the past three or four years, but I don't see people investing in a big way," McAdam said.
McAdam added that the outcome of this year's presidential election is also causing issues for large businesses.
"I get to talk to a lot of the largest CEOs and I think everyone is still waiting, and frankly perplexed, by the political environment here, and who ends up being the president and what their philosophy is," McAdam said. "It doesn't matter whether you're Republican or Democrat, I think most people are scratching their heads here. And I think enterprises are going to hold back a little bit."
These issues continued to be reflected in Verizon's first quarter results as enterprise revenues dropped 3.1 percent to $3.16 billion.
Alternatively, in the small to medium business (SMB) market, Verizon is seeing opportunities to penetrate more sites with fiber.
In particular, the service provider's plan to build out FiOS in Boston via a six-year agreement with the city is designed to accommodate various uses, including consumers, businesses (both enterprises and SMBs), and its 4G and 5G network deployments.
"On the small business side, there's certainly lots of activity there," McAdam said. "That's part of the reason why we're bullish on getting fiber more into places like Boston because we think there's lots of opportunity there and lots of businesses that are being established."
For more:
- listen to the webcast (reg. req.)
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