The Motorola DROID RAZR is arguably the most exciting Android device to come across my desk in some time, but all the hype in the world doesn’t necessarily mean it deserves to carry the iconic RAZR name. It’s a 4G LTE device that packs in a powerful processor, high resolution display, 16GB of built-in storage, 1080p HD video capture capability and plenty more. But is this Motorola’s best phone since the original RAZR? I have spent the past few days with the Motorola DROID RAZR, so hit the break for my full review.

Hardware / Display / Design

The Motorola DROID RAZR features top-of-the-line specs, and it somehow stuffs it all into one of the thinnest and lightest smartphone cases on the planet. At only 7.1 millimeters thin, this isn’t only the thinnest 4G LTE device in the world, it’s one of the thinnest smartphones period. With a 1.2GHz dual-core TI OMAP processor, a 4.3-inch qHD Super AMOLED display, 1GB of RAM, an 8-megapixel camera with 1080p HD video capture, an LED flash, an HDMI-out port, noise cancellation capabilities, 16GB of built-in storage and a 16GB microSD card pre-installed, this phone is isn’t just competing with other Android devices, it’s crushing them.

As far as the design of the handset, the DROID RAZR looks like the perfect evolution of the DROID family with a beautiful display sandwiched in between tough Gorilla Glass and a metal chassis with Kevlar backing. The edges of the RAZR are angular yet still soft, and the phone blends high gloss finishes with a matte case-back perfectly.

On top of the phone is an HDMI-out port, a microUSB charging and data port, and a 3.5-millimeter headset jack. On the right side is a power on/off/unlock button next to a volume up/down rocker key. On the left side is a small cover that flips down to give you access to the phone’s LTE microSIM card and microSD card. Around back is the 8-megapixel camera, an LED flash and a speaker.

While the display on the DROID RAZR is a 4.3-inch qHD Super AMOLED screen, it still isn’t perfect. It does look better to me than the displays used on the Motorola DROID BIONIC and Motorola DROID 3, but it’s still a PenTile display, and that means that it still has a grainy look no matter how high the resolution is. Colors look very good and are reasonably bright and vivid, though the screen doesn’t compare to the likes of Samsung’s Super AMOLED Plus displays. Touch sensitivity was excellent and incredibly responsive, with the device instantly reacting to every touch event, swipe and drag. On top of the display is Gorilla Glass, so in addition to the phone performing extremely well in the display department, it should be able to hold up to your use and abuse pretty well.

Now, while I love most of the hardware on the Motorola DROID RAZR, there are bound to be some negatives, right?

The smartphone is incredibly thin, but all that technology has to be stuffed in there somehow. How did Motorola fit it all, you ask? This phone incredibly thin but it’s also extremely wide. In addition to a 4.3-inch display, on the upper end of the comfortable spectrum as far as normal non-ape humans are concerned, the RAZR has a lot of empty space on both sides of the screen. That doesn’t count the phone’s actual frame either.

Without measuring, it looks like there’s almost a half inch of space on both sides of the display. This might not sound like a lot, but piled on top of an already huge screen, this makes one-handed use nearly impossible. I can’t even delete an icon off the home screen using one hand since Motorola made the delete area at the top of the display.

When going into the phone app, I can’t even dial a phone number with one hand since the dialer tab is, again, on top of the display and my thumb can’t come close to reaching it. Want to browse the Web? Well, you can’t do it one-handed because your thumb won’t be able to touch the URL entry bar. I can’t even swipe down to bring up the notification drawer using one hand to check unread messages, alerts and other information.

Software

The software running on the Motorola DROID RAZR is almost identical to the last flagship Android device from Verizon Wireless that shipped only seven weeks ago, the Motorola DROID BIONIC. One new feature that is actually very handy is Motorola’s Smart Actions app.

Smart Actions lets you specify different actions for your phone to automatically perform based on locations. I wish my iPhone had this. For instance, I don’t use Bluetooth at all when I’m at home, and I’d love it if my iPhone would turn Bluetooth off to save battery whenever I pulled into the driveway. Well, this works flawlessly on the Motorola DROID RAZR with Smart Actions. In addition to being able to set a wide range of different settings for locations, you can also base these actions on other parameters, like when the phone reaches a certain battery percentage. One of the suggested configurations is to have your display dim, turn off GPS, and turn of background syncing when your phone’s battery is at 20% or lower. Motorola says that with Smart Actions configured, you can extend your RAZR’s battery by up to 30%.

Besides Smart Actions, the DROID RAZR offers FIPS 140-2 validation for email, contacts and calendar giving the RAZR government-grade encryption for those apps in addition to voice and video conferencing. Beyond these few things, the OS and UI on the Motorola DROID RAZR are basically identical to the device before it, and the one before that.

Phone / Speakerphone

Voice calling on this phone is excellent, with calls coming through loud with good low end and clarity. Signal reception was also excellent and I almost always got 4G LTE signal in my home or around town in New York City and parts of Connecticut. Callers could hear me loud and clear.

As far as the speakerphone performance, it was sometimes hard to hear the other party in a conversation. Audio was choppy and I wish the speaker could get louder. Music playback on the speaker was hollow, tinny and distorted, but oddly, it seemed to get louder than it could during a voice call.

All in all, the DROID RAZR is a solid phone for voice calling, though the speakerphone performance fell short.

Battery

The battery on the Motorola DROID RAZR has really impressed me. After using the phone for a few days, I completely forgot about the fact that this a 4G LTE device (in terms of battery performance, not data speeds). For the first time ever, I believe that Verizon’s 4G LTE devices have finally reached the point of being powerful enough in the battery department, and thin enough, to not offer any drawbacks related to 4G compatibility.

The RAZR lasted days as far as standby time is concerned, and even with moderate use, the phone went for almost two days. While the battery isn’t removable, that’s a small price to pay for a device that’s able to run with the best of them.

Accessories

Motorola sent me a boatload of accessories for the DROID RAZR including an external battery (just plug it in and you have an external power supply), a car dock, a multimedia dock and the company’s updated Lapdock 100. The new laptop dock improves upon the original, though it still has issues. For example, Motorola has wisely allowed this new Lapdock to work with a wide variety of Motorola smartphones by having a universal connector that plugs into more than one device. Unfortunately, this design doesn’t actually let you dock the phone. Instead, you can only rest the phone in a cut out in the Lapdock.

For a phone like the RAZR with the ports on the top of the case, you can’t even rest the handset in the Lapdock, so you’re forced to leave it plugged in on the table.

The new laptop dock has two-finger scrolling, a welcome change, though its performance it still pretty terrible and it makes navigation a maddening experience. The keyboard is improved, though key layout and size isn’t optimal, either.

All in all, in my limited usage, Motorola’s webtop concept is still very much a concept and not something I’d ever consider using regularly. It’s easier to just use the phone itself than the clunky laptop-like accessory.

Conclusion

The Motorola DROID RAZR has replaced Samsung’s Galaxy S II as the best Android device I’ve ever used. It’s ridiculously fast, incredibly thin and it runs on the fastest network in the country. It is also the first 4G device to finally show the world that it doesn’t have to be as thick as a brick or have battery life that forces you to invest in 12 chargers.

With a beautiful design, an amazing display and a thin profile that’s packed to the brim with the latest and greatest specs, the Motorola DROID RAZR is absolutely worthy of being Verizon’s flagship device for the holidays. While the physical size of the device is larger than I’d have liked, and one-handed usage can be tricky if you’re not used to the crop of large display’d devices of late, there are way more positives than negatives with the DROID RAZR.

Is it a device worthy of being the new Motorola RAZR? For the most part, I’d say so.

The Motorola DROID RAZR will become available on November 11th at 11:11 a.m. for $299.99 on contract. Verizon is also offering a limited time promotion as far as 4G smartphone data plans are concerned, so a customer who signs up for the 2GB monthly plan for $30 will receive the 4GB data plan, and someone who wants something smaller will be able to add a 300MB data plan to any Verizon Wireless phone for $20 a month.

We just confirmed some of the specifications for the upcoming Motorola DROID device (DROID HD / DROID RAZR / Spyder) that Verizon Wireless and Motorola are rumored to be announcing next week, and they are monster. Here is what we have:

• Thinner and “faster than the iPhone 4S” according to our source
• 1GB of RAM — double the iPhone 4 and 4S
• 1.2GHz dual-core processor
• 4G LTE (thinnest LTE phone to date)
• 4.3-inch display

The teaser video for this phone appears to be a direct shot at the iPhone — faster, thinner, smarter, stronger — and with the specifications above and rumored physical attributes like a case molded from Kevlar, a Gorilla Glass display and a splash-resistant coating, it looks like we’re in for quite an event next Tuesday.

Samsung has begun sending event invitations to bloggers and members of the press for an event on August 29th where the South Korea-based vendor will unveil U.S. models of its popular Samsung Galaxy S II smartphone. The devices will be unveiled in New York City, and no other details from Samsung are available at this time. BGR exclusively reported earlier this month that Sprint’s version of the Galaxy S II would be called the Epic Touch 4G, and a purported Verizon Wireless roadmap suggested that the nation’s top carrier could release the sleek smartphone on September 9th as the Samsung Stratosphere, though other reports have suggested the Stratosphere is a different device that is not part of the Galaxy S II line. Versions are expected for both AT&T and T-Mobile as well, though details surrounding these devices have not yet been revealed. BGR reviewed the international version of the Galaxy S II back in May, and we found it to be one of our favorite Android smartphones to date at that time.

UPDATE: Due to the hurricane approaching the New York area, Samsung has pushed this event back one day to Tuesday, August 30th.

Wireless carriers around the world are digging themselves into a deeper hole by neglecting to experiment with innovative pricing models for 4G LTE services. While consumers have exhibited concern surrounding tiered data plans and bandwidth throttling, Ovum believes such models are necessary to combat the growing capacity crunch plaguing cellular service providers. This crunch, of course, is serious enough that AT&T is hoping to soon $39 billion in order to acquire T-Mobile USA and use the carrier’s precious spectrum for its 4G LTE network build-out. Smartphone and mobile broadband users are pumping more data over wireless networks than ever before, and speedier 4G LTE service only stands to exacerbate the situation. Additionally, carriers are missing the opportunity to find new ways to squeeze more revenue out of this new premium high-speed service. “We looked at the LTE pricing strategies of operators in Europe, Asia-Pacific, and the US, and were disappointed with our findings,” Ovum analyst Nicole McCormick said in a statement. “LTE provides operators with the opportunity to experiment with new and innovative pricing models, which allows them to find the best way of deriving revenues from the premium service. However, most operators have not grasped this opportunity. Instead, LTE tariffs in the regions Ovum analysed are dominated by unlimited offerings and large data buckets, which can be problematic.” Ovum’s full press release follows below.

Lack of innovation in LTE pricing models, report finds

5 August 2011 | Published by Ovum

Operators that offer high-speed mobile broadband technology LTE are failing to deliver innovative pricing models, according to Ovum.

In a new report*, the independent telecoms analyst firm claims that there is a lack of new and innovative LTE (long term evolution) tariffs, which is a missed opportunity for operators given that LTE is a new service in the eyes of consumers.

Nicole McCormick, Ovum senior analyst and author of the report, commented: “We looked at the LTE pricing strategies of operators in Europe, Asia-Pacific, and theUS, and were disappointed with our findings.

“LTE provides operators with the opportunity to experiment with new and innovative pricing models, which allows them to find the best way of deriving revenues from the premium service.

“However, most operators have not grasped this opportunity. Instead, LTE tariffs in the regions Ovum analysed are dominated by unlimited offerings and large data buckets, which can be problematic.”

According to the report, unlimited data plans for LTE can present significant problems for operators, especially if they are accompanied by a lenient fair usage policy.

McCormick commented: “Operators should not offer unlimited LTE tariffs without some sort of deterrent as they could have an impact on the quality of the service given LTE’s data-intensive nature. However, we note that some leading operators –Verizon Wireless,SKTelecom, NTT DoCoMo and LG U+ – have steered clear of unlimited LTE offerings despite offering such packages in the 3G arena.”

The report also found that charging high premiums for LTE is unsustainable in the long-term due to competitive pressures in the industry and increased migration to 4G services. McCormick added: “Operators will need to be careful not to alienate high-end customers that have paid a premium for a fast, high-quality service by reducing LTE tariffs too quickly or drastically.”

Verizon Wireless has a blockbuster smartphone and tablet lineup planned ahead of the holiday shopping season this year according to a purported leaked roadmap. Published on Wednesday by IGN, the roadmap reveals numerous previously unheard of devices. While details are scarce for the time being, several highly anticipated phones are mentioned on the document as well, alongside launch dates. The following are highlights from the document along with launch dates and some available details:

• September 8th: Samsung Stratosphere (presumably Verizon’s Galaxy S II) — 4G LTE, Android 2.3 Gingerbread
• September 8th: Motorola DROID BIONIC
• September 8th: BlackBerry Curve 9370 — 4G LTE
• September 8th: 4G Motorola XOOM
• September 29th: Samsung Illusion — Android 2.3 Gingerbread
• September 29th: HTC Bliss — Android 2.3 Gingerbread
• October 5th: HTC Vigor — replaces the HTC Thunderbolt
• October 20th: LG Revolution 2 — replaces the LG Revolution
• November: Galaxy Tab P8 — 4G LTE

The document also mentions a Samsung Plato, though it says the device’s launch has been delayed until January, and it states that Verizon will launch RIM’s BlackBerry PlayBook at a date to be determined. None of this is confirmed for the time being, though if accurate, Verizon Wireless subscribers can expect quite a lineup this fall straight through to the holidays.

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The launch of Apple’s next-generation iPhone will propel global iPhone sales to 30 million units in the calendar fourth quarter of this year, BTIG Research analyst Walter Piecyk wrote on Wednesday. BTIG had previously estimated that Apple would sell 21.5 million iPhone handsets in the fourth quarter, but in light of Apple having recently reporting sales of 20.34 million units in the fiscal third quarter, the firm’s previous estimate is almost certainly low. Piecyk also believes Apple may sell more than 10 million iPhones in the U.S. alone in the fourth quarter. AT&T, he says, could sell as many as 5 million Apple phones next quarter thanks to the iPhone 5 launch and the possible continuation of a $50 legacy iPhone model. Verizon could sell as many as 4 million iPhones in the fourth quarter, making up 45% of the carrier’s smartphone sales in the quarter; Piecyk thinks Verizon’s continued success with 4G LTE-enabled Android smartphones will drive total smartphone sales to 9 million units in the quarter. Finally, the analyst sees Sprint launching the fifth-generation iPhone this fall, and he estimates sales of 1.5 million units in the fourth quarter.

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Verizon Wireless just sent us the 4G LTE-equipped version of Samsung’s flagship Android tablet, the Galaxy Tab 10.1, and we’re ready to deliver our initial impressions. First things first: this should go without saying at this point, but this puppy is ridiculously fast. Verizon Wireless’ 4G LTE network is unmatched when it comes speed and latency — from the user’s perspective, it’s pretty much like being connected to a Wi-Fi network. A few quick tests performed just outside New York City showed the blazing-fast speed we’ve come to expect from Verizon’s 4G network, ranging from about 12-15Mbps down and 3-5Mbps up. On the hardware side of the equation, Samsung’s LTE tablet has undergone a handful of cosmetic changes. Holding the slate in landscape orientation, the stereo speakers have been moved up the sides of the device to accommodate the power button and the volume rocker, which are now on the left side of the Tab 10.1 instead of up on top. The back of the tablet is also slightly different. It now features a gray plastic rear cover with a brushed metal effect. We like the look of the new back but unfortunately, the quality seems to be a bit lacking. Within a few minutes of removing the new Galaxy Tab 10.1 from its box, there were already a few scratches on the back case. Overall build is solid, however, just like our original limited edition 10.1 model, and it’s still remarkable that Samsung was able to make this tablet so thin. Check out our hands-on 4G LTE Galaxy Tab 10.1 photo gallery below for more photos of this sleek, speedy slate.

Motorola will finally make a 4G LTE upgrade available to owners of its XOOM tablet beginning in September. The tablet ships with an embedded EV-DO modem for 3G connectivity on Verizon Wireless’ network out of the box, but Motorola had promised that an upgrade to 4G LTE would become available this past May. Motorola has not been clear on the cause of the delay, but the company began sending emails to XOOM owners telling them to expect the update in September. Applying the 4G LTE upgrade requires that a new modem replace the old one in the XOOM, and Motorola will need customers to ship their tablets out for up to a week in order to have the upgrade applied. The process will be free of charge for XOOM owners.

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Verizon Wireless on Tuesday unveiled the latest addition to its connected notebook PC lineup, the HP Pavilion dm1-3010nr. The new Pavilion laptop is Verizon’s first model to feature an embedded 4G LTE modem for high-speed 4G connectivity out of the box. The 1.2-inch-thick notebook is also no slouch where specs are concerned; highlights include an 11.6-inch 1366 x 768-pixel LED display, a 1.6GHz dual-core AMD processor, 2GB of DDR3 RAM, a 320GB hard drive, a VGA webcam and Windows 7 Home Premium. The HP Pavilion dm1-3010nr goes on sale this Thursday, July 28th, for $599.99. Users will also need to choose between one of two data plans — $50 each month for 5GB, or $80 each month for 10GB. Verizon Wireless’ full press release follows below.

VERIZON WIRELESS INTRODUCES FIRST 4G LTE POWERED NOTEBOOK

BASKING RIDGE, N.J. – Verizon Wireless today announced the 4G LTE-enabled HP Pavilion dm1-3010nr Entertainment PC, will be available online at www.verizonwireless.com on July 28.

Previously announced at this year’s Consumer Electronics Show and powered by Verizon’s 4G LTE network, the HP Pavilion dm1-3010nr allows customers to stream high-definition content; play games; video chat; and download music, photos and videos within seconds rather than minutes.  Measuring less than 1.2-inches thin, the HP Pavilion dm1-3010nr offers the performance of a notebook with the mobility of a netbook.  The notebook’s HP CoolSense Technology combines advanced hardware and intelligent cooling software for a notebook that feels noticeably cooler.

Key features:

• 4G LTE – customers can expect download speeds of 5 to 12 Mbps and upload speeds of 2 to 5 Mbps in 4G mobile broadband coverage areas
• Windows^® 7 Home Premium 64-bit
• 11.6-inch High-definition HP BrightView LED Display (1366 x 768)
• 1.60 GHz AMD Dual-Core Processor E-350
• 320 GB hard drive with HP ProtectSmart hard drive protection
• Memory: 2 GB DDR3 RAM
• Wi-Fi 802.11 b/g/n
• VGA webcam with integrated digital microphone
• Multi-format digital media card reader for SD cards and multimedia cards
• Weight: 3.52 lbs

Pricing and availability:

• The HP Pavilion dm1-3010nr will be available online at www.verizonwireless.com for $599.99.
• Customers will have the option to choose one of the following mobile broadband data plans:
  • $50 monthly access for 5GB monthly allowance
  • $80 monthly access for 10GB monthly allowance

For more information on Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to www.verizonwireless.com.

Verizon Wireless products and services have been noticeably absent from RadioShack’s wireless portfolio, but that comes to an end this fall. The nationwide retailer on Tuesday announced an agreement that will finally see it begin to offer devices from the country’s top carrier on September 15th. At the same time, The Shack announced that it will stop selling T-Mobile products and services a day earlier on September 14th. Following the company’s second-quarter earnings report, which saw net income slide 53% from the same quarter last year, RadioShack stock climbed 7% on the news. “This is a substantial win for our customers, as this relationship with the nation’s largest wireless provider will further enhance our position as a leading multi-carrier wireless retailer,” RadioShack CEO Jim Gooch said in a statement. ”The addition of Verizon Wireless, in combination with our existing carrier partners, positions us to now offer the best assortment of carriers, rate plans, devices and accessories for every consumer need.” RadioShack’s full press release follows below.

RadioShack to Offer Verizon Wireless Products and Services in Company-Operated Stores

- New agreement with industry leader means consumers benefit, with more than 4,300 RadioShack stores to offer Verizon Wireless services
- RadioShack ceases offering T-Mobile services in stores

FORT WORTH, Texas, July 26, 2011 /PRNewswire via COMTEX/ –

RadioShack Corporation (NYSE: RSH),a leading national retailer of innovative mobile and technology products, services and accessories, today announced that it has entered into an agreement with Verizon Wireless, the nation’s largest wireless carrier, to provide postpaid and prepaid wireless products and services in RadioShack’s company-operated stores nationwide beginning Sept. 15, 2011. The Company also announced that it will cease offering T-Mobile wireless products and services in its company-operated stores effective Sept. 14, 2011.

RadioShack expects to launch Verizon Wireless products and services, including top-selling handsets, in more than 4,300 U.S. company-operated stores and through its website, www.RadioShack.com, beginning Sept. 15.

Jim Gooch, president and chief executive officer of RadioShack Corporation, commented on the new Verizon Wireless agreement, stating, “This is a substantial win for our customers, as this relationship with the nation’s largest wireless provider will further enhance our position as a leading multi-carrier wireless retailer. The addition of Verizon Wireless, in combination with our existing carrier partners, positions us to now offer the best assortment of carriers, rate plans, devices and accessories for every consumer need.”

Dan Mead, president and chief executive officer of Verizon Wireless, said, “We view this as an opportunity to substantially extend our customer reach at a time when our portfolio of mobile products has never been more exciting. RadioShack has a long track record of providing customers with quality products and services in convenient locations around the country, and we are delighted to join with them on this venture.”

Ahead of an official announcement expected on Tuesday, Verizon Wireless let slip a promotional video starring its upcoming flagship BlackBerry smartphone, the BlackBerry Bold 9930. First revealed exclusively here on BGR, this next-generation Bold smartphone is the handset BlackBerry fans have been clamoring for. It features a sharp 2.8-inch touchscreen above the famous full QWERTY that RIM’s phones are known for. While the Torch was the first BlackBerry device to pair a touchscreen and a full QWERTY, the keyboard was no match for the one found on RIM’s Curve and Bold smartphones. Thankfully, the 9930 sports the best of both worlds and although we’re far more interested in seeing what QNX-powered devices RIM has in the works, the Bold 9930 will certainly help tide over legions of BlackBerry fans while they await RIM’s next bushel of Berries. An official Verizon Wireless video showing off the new Bold 9930 follows below.

[Via TeensTalkTech]

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Newly appointed Verizon Communications CEO Lowell McAdam is already making waves. While fielding questions on Verizon’s earnings call on Friday, McAdam let slip some interesting notes regarding Apple’s fifth-generation iPhone. The executive was asked by an analyst if he thought Verizon Wireless would meet earlier estimates projecting that smartphones would be in the hands of 50% of postpaid subscribers this year. “We like the gross add mix that we see coming in here. We are in the roughly 60% kind of range,” McAdam responded according to the Associated Press’ transcription. He continues, “We are probably what I would view as maybe a quarter behind what we had talked about in January, primarily because we expected an iPhone 5 refresh sometime this summer. We don’t know when the next one is going to come out. You will have to ask Apple that, but we expect that probably sometime in the fall, and I think you will see a significant jump there when we get to that point.”

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A new page on T-Mobile USA’s website makes some fairly bold claims about the carrier’s premier Honeycomb tablet, the LG G-Slate. In comparing the sleek device to its steepest competition at AT&T and Verizon Wireless, T-Mobile says the G-Slate is “more than two times faster than the Apple iPad 2 on AT&T and Verizon, and three times faster than the Motorola XOOM on Verizon — and it’s less expensive, too!” At $399.99 with a 2-year data contract or $599.99 off contract, there is no question that the G-Slate is cheaper. Apple’s 3G iPad 2 is $729 with the same 32GB of storage and the Motorola XOOM is $599.99 on contract or $799.99 contract-free. Regarding the speed-related claims, some questions have been raised as to how T-Mobile came to those conclusions. “An independent third party conducted testing to compare T-Mobile’s G-Slate, AT&T’s iPad 2 and Verizon Wireless’ Motorola XOOM,” a T-Mobile spokesperson told BGR in an email. ”The testing was conducted in two cities – New York and Seattle – across 30 locations and at least five repetitions with each device per location per market. The total sample size was 300 tests encompassing at least 70 percent of a market.” T-Mobile has once again pitted its 4G HSPA+ service against comparable networks from its two largest competitors, and according to this third-party study, the nation’s No. 4 carrier has again come out on top. BGR reviewed T-Mobile’s G-Slate tablet this past April and found that the hardware was best-in-class, though we were not impressed with Google’s initial build of Android 3.0 Honeycomb.

Activations of Apple’s popular iPhone 4 handset slowed significantly at Verizon Wireless last quarter. The nation’s No. 1 carrier reported its second-quarter earnings early Friday morning, at which time it revealed its latest iPhone numbers. Verizon Wireless activated 2.3 million iPhone 4 units in its June quarter for an average of just under 177,000 phones each week. In the first quarter, Verizon Wireless activated 2.2 million iPhones, but the device had been available for just seven weeks in the quarter. During that period, the carrier was activating an average of more than 315,000 devices each week. It stands to reason that iPhone 4 sales would slow following the device’s debut with the carrier, but this 44% drop off is a bit steep for the single most popular smartphone on the planet. AT&T announced on Thursday that it activated 3.6 million iPhones in the June quarter, but the carrier does not separate iPhone 4 and iPhone 3GS activations so there is no basis for comparison.

Verizon Communications on Friday reported second-quarter earnings that topped the Street’s estimates, though it failed to match AT&T’s impressive wireless growth during the quarter. Revenue climbed to $27.5 billion in the June quarter, up 2.8% from the same quarter last year. EPS was up 6 cents sequentially to $0.57, a huge swing from the second quarter in 2010 when Verizon reported a loss of $0.42 per share. In wireless, the carrier netted 2.2 million subscribers — or “total connections,” rather — excluding gains made through acquisitions, and service revenues climbed 6.6% year-over-year. Verizon now reports total connections, which include machine to machine devices and other non-standard subscribers, and its total now sits at 106.3 million. The carrier also said that it activated 2.3 million iPhone 4 handsets in the June quarter. “In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn,” said Verizon Chairman and CEO Ivan Seidenberg in a statement. “We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.” The company also noted that Ivan Sandberg will step down as CEO, replaced by Lowell McAdam. Sandberg will retail is his as chairman of the board. Verizon’s full press release follows below.

Verizon Reports Accelerated Revenue Growth, Expanded Margins and Strong 2Q Earnings Performance

2Q HIGHLIGHTS

Consolidated

·        57 cents in diluted earnings per share (EPS), compared with a loss of 42 cents per share and adjusted EPS (non-GAAP) of 51 cents in 2Q 2010.

Wireless

·        6.6 percent year-over-year increase in service revenues in 2Q 2011; data revenues up 22.2 percent; 27.1 percent operating income margin and 45.4 percent Segment EBITDA margin on service revenues (non-GAAP).

·        2.2 million net additions, excluding acquisitions and adjustments, includes 1.3 million retail postpaid net customer additions; 106.3 million total connections, includes 89.7 million retail customers.

·        Retail postpaid churn of 0.89 percent, the lowest in three years.

Wireline

·        189,000 FiOS Internet and 184,000 FiOS TV net additions.

·        9.4 percent year-over-year increase in consumer ARPU; FiOS consumer retail revenues represent approximately 57 percent of total consumer revenues.

·        17.8 percent increase in strategic services revenues, representing approximately 48 percent of total global enterprise revenues.

NEW YORK — Verizon Communications Inc. (NYSE, NASDAQ: VZ) today reported accelerated revenue growth and improved margins across its business groups, leading to a strong earnings performance in second-quarter 2011.

Verizon reported 57 cents in EPS in the quarter, compared with a second-quarter 2010 loss of 42 cents per share.

There are no adjustments to second-quarter 2011 earnings results.  Adjusted second-quarter 2010 earnings were 51 cents per share, excluding the impact of divestitures and non-operational charges (non-GAAP).  The most significant 2010 charges related to a workforce-reduction incentive offer that led to approximately 11,900 voluntary separations last year.

Strong, Positive Momentum

“In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon’s best quarters since the 2008 economic downturn,” said Chairman and CEO Ivan Seidenberg.  “We expanded sequential margins in both our wireline and wireless businesses, and in the second half of the year we expect Verizon to build on this strong, positive momentum to continue to drive profitable, sustainable growth.”

Seidenberg added: “We expect Verizon Wireless to gain share in the retail postpaid market and widen its network-quality lead throughout 2011.  We also continue to see strong customer demand for FiOS Internet and TV, and for cloud and other strategic services.  At the same time, we remain focused on our cost structure, as we deliver improvements in wireline margins quarter after quarter.”

Consolidated Revenue Growth Continues to Accelerate

On a consolidated basis, Verizon’s total operating revenues were $27.5 billion in second-quarter 2011, an increase of 2.8 percent compared with second-quarter 2010.  Last year’s results included revenues from operations that have since been divested.

On a comparable basis (non-GAAP), second-quarter 2011 total operating revenues increased 6.3 percent compared with second-quarter 2010.  This was Verizon’s strongest quarter for consolidated revenue growth in 10 quarters.

Also on a comparable basis, consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) for second-quarter 2011 totaled $9.0 billion, up 5.2 percent year over year.

Cash flow from operating activities totaled $12.8 billion in the first half of 2011, down from $16.8 billion in the first half of 2010.  Last year’s total included cash flow from businesses that have since been divested and the timing of favorable tax-related impacts, and 2011 totals include inventory purchases for wireless devices and the impact of previously announced pension-fund payments in first-quarter 2011.  Verizon said its cash flow outlook for the remainder of 2011 remains very strong.

The company aggressively invested in growth opportunities in the first half of 2011.  One example is the deployment of Verizon’s nationwide 4G LTE (fourth-generation, Long-Term Evolution) wireless broadband network.  In first-half 2011, Verizon’s capital expenditures totaled $8.9 billion, compared with $7.6 billion in first-half 2010.

Verizon continues to expect full-year 2011 capital spending to be similar to its 2010 investment of $16.5 billion.

Verizon Wireless Delivers Another Strong Quarter

Verizon Wireless delivered strong growth in revenues, retail customers and other connections, driven by increased smartphone penetration and increased retail postpaid ARPU (average monthly service revenue per user).  In the second quarter of 2011:

Wireless Financial Highlights

·        Service revenues in the quarter totaled $14.7 billion, up 6.6 percent year over year.  Data revenues were $5.8 billion, up $1.1 billion or 22.2 percent year over year, and represent 39.5 percent of all service revenues.  Total revenues were $17.3 billion, up 10.2 percent year over year.

·        Retail postpaid ARPU grew 1.9 percent or $1.00 over second-quarter 2010, to $54.12. Retail postpaid data ARPU increased to $21.26, up 15.2 percent year over year.  Retail service ARPU also grew 1.9 percent, to $52.49.

·        Wireless operating income margin was 27.1 percent.  Segment EBITDA margin on service revenues (non-GAAP) was 45.4 percent.

Wireless Operational Highlights

·        Verizon Wireless added 2.2 million total connections, including 1.3 million retail postpaid customers, and 890,000 wholesale and other connections.  These additions exclude acquisitions and adjustments.

·        At the end of the second quarter, the company had 106.3 million total connections, an increase of 6.6 percent year over year, including 89.7 million retail customers and 16.6 million wholesale and other connections.

·        At the end of the second quarter, smartphones were 36 percent of Verizon Wireless’ retail postpaid customer phone base, up from 32 percent at the end of first-quarter 2011.

·        Retail postpaid churn was 0.89 percent, the lowest in the industry and the company’s lowest since second-quarter 2008.  Total retail churn was 1.22 percent, an improvement of 9 basis points year over year and 11 basis points sequentially.

·        Verizon Wireless continued to roll out its 4G LTE mobile broadband network during the quarter.  As of yesterday (July 21), Verizon Wireless 4G LTE service is available in 102 markets across the country, covering a population of more than 160 million.  By year-end, Verizon Wireless’ 4G LTE network, the fastest and most advanced LTE network in the U.S., is expected to be available in more than 175 markets across the country, covering a population of more than 185 million.

·        The company introduced three new 4G LTE devices: the Droid Charge by Samsung, Revolution by LG and the MiFi 4510L 4G LTE Mobile Hotspot by Novatel Wireless.  The company also announced that the 4G LTE-enabled Samsung Galaxy Tab 10.1 is available for pre-order; the device is expected to launch by the end of this month.  During the second-quarter 2011, Verizon Wireless sold 1.2 million 4G LTE smartphones and Internet data devices.

·        Verizon Wireless continued to invest in and enhance its 3G network, the nation’s largest and most reliable 3G network.

·        During the quarter, Verizon Wireless deployed crisis response teams to help customers stay connected in areas devastated by disasters including the North Dakota floods,  Arizona wildfires and Joplin, Mo., tornado.

Improved Revenue Trends in Wireline

Verizon’s Wireline segment continued to expand margins, supported by improved revenue trends.  In the second quarter of 2011:

Wireline Financial Highlights

·        Segment EBITDA margin (non-GAAP) was 23.8 percent, compared with 22.4 percent in second-quarter 2010.  This was Wireline’s fifth consecutive quarter of sequential EBITDA margin expansion.

·        Second-quarter 2011 operating revenues were $10.2 billion, a decline of 0.3 percent compared with second-quarter 2010.  This is an improvement from a decline of 2.2 percent comparing first-quarter 2011 to first-quarter 2010.  Verizon acquired cloud and managed IT infrastructure leader Terremark Worldwide in April, and the inclusion of Terremark results added $98 million in revenue, representing 100 basis points of wireline revenue growth, in second-quarter 2011.

·        Revenues for Verizon’s FiOS fiber-optic services to consumer retail customers generated approximately 57 percent of consumer wireline revenues in second-quarter 2011, compared with approximately 48 percent in second-quarter 2010.

·        Consumer revenues grew 1.3 percent compared with second-quarter 2010.  Consumer ARPU for wireline services was $92.44 in second-quarter 2011, up 9.4 percent compared with second-quarter 2010.  ARPU for FiOS customers continues to be more than $146.

·        Global enterprise revenues totaled $4.0 billion in the quarter, up 3.6 percent compared with second-quarter 2010.  Sales of strategic services — including Terremark cloud services, security and IT solutions, and strategic networking — increased 17.8 percent compared with second-quarter 2010 and now represent approximately 48 percent of global enterprise revenues.

Wireline Operational Highlights

·        Verizon added 189,000 net new FiOS Internet connections and 184,000 net new FiOS TV connections in second-quarter 2011.  Verizon had a total of 4.5 million FiOS Internet and 3.8 million FiOS TV connections at the end of the quarter.

·        FiOS penetration (subscribers as a percentage of potential subscribers) is now 30 percent or more for both services.  FiOS Internet penetration was 34 percent at the end of second- quarter 2011, compared with 30 percent at the end of second-quarter 2010.  In the same periods, FiOS TV penetration was 30 percent, compared with 26 percent, respectively.  The FiOS network passed 16.1 million premises at mid-year 2011.

·        Broadband connections totaled 8.6 million at the end of second-quarter 2011, a 3.3 percent year-over-year increase.  FiOS Internet connections more than offset a decrease in DSL-based HSI connections, resulting in a net increase of 62,000 broadband connections from first-quarter 2011.  Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 7.9 percent to 25.0 million — the smallest year-over-year decline since second-quarter 2007.

·        During the quarter Verizon continued to execute its global cloud strategy, rolling out an expanded portfolio of secure IT solutions and an operational model for its Terremark subsidiary.  Verizon also continued to deploy integrated IT and communications solutions for multinational enterprise, medium-sized and government customers.  These solutions included expansion of the company’s managed mobility services for tablets, mobile access to cloud-based SAP applications and enhanced security management programs for health care providers.  Verizon also completed new agreements with a range of multinational corporations, including Constellation Energy, Epsilon, Masco Corp. and PHH Corp.

·        Verizon expanded its global network infrastructure during the quarter as it continued to broaden its scope and capabilities.  The company installed 63 additional Private IP edge routers for a total of 915 edge routers in 245 sites throughout 63 countries, activated more than 1,500 kilometers (932 miles) of ultra-long-haul network across the southern part of the United Kingdom, and completed a joint fiber build in Singapore, which almost doubles the coverage of the Singapore fiber-optic network.  Verizon continued to demonstrate leadership in scaling the global IP network and kicked off the expansion of 100G IP backbone capabilities in the U.S. to nine routes.

NOTE: Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results for the divestiture of overlapping wireless properties in 105 operating markets in 24 states during the first half of 2010; the wireless deferred revenue adjustment that was disclosed in Verizon’s Form 10-Q for the period ended June 30, 2010; the spinoff to Frontier of local exchange and related landline assets in 14 states, effective on July 1, 2010; and other non-operational items.  See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this document.