Verizon signs over $2 billion AI deal with AWS — Channel NewsAsia

In the United States, telecommunications company Verizon has signed an agreement worth more than $2 billion with Amazon Web Services in the field of infrastructure for artificial intelligence computing. Verizon will provide AWS data centers with high-speed fiber-optic connectivity, which is expected to accelerate and improve the reliability of data transmission, Channel NewsAsia reports.

Subscriber forecast raised

Verizon also revised its annual forecast for postpaid mobile subscriber additions. The company now expects to add between 1.1 million and 1.2 million such customers, compared with its previous forecast of between 750,000 and 1 million.

In the third quarter, Verizon reported an addition of 406,000 monthly-billed mobile subscribers. This was nearly double Visible Alpha's forecast of 209,439 new customers. In premarket trading, shares of the company, which is headquartered in New York, rose by 2.4%.

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Financial indicators

The company raised its full-year adjusted earnings-per-share forecast to $5.04–$5.06 from the previous range of $4.99–$5.04. At the same time, Verizon's third-quarter revenue amounted to $34.3 billion, below analysts' expectations of $34.74 billion, according to LSEG.

Revenue was affected by a decline in device upgrade volumes, as customers used their phones for longer after Verizon began reducing device subsidies. In June, the company launched the Simplicity plan with transparent pricing and unlimited data. In July, Verizon also announced an agreement with Google worth more than $1 billion to connect data centers using dark fiber.