Let’s make sure we understand what Verizon(NYS:VZ) is saying.  Verizon is saying the financial-services industry doesn't contribute a significant amount of revenue to the Verizon revenue stream. How is that good news? Consider investing for long term gains.

On the one hand Verizon is saying that the financial-services industry doesn't contribute a significant amount of revenue to the Verizon revenue stream.  On the other hand Sprint is losing corporate customers.  My best guess is that Verizon is getting a lot of them.

I understand that investors are trying to show a bright side to this economic mess.  However, pretending we are not in a recession is not a sound idea.  Verizon is a smart company it has taken aggressive steps to continue growing its revenue in this massive recession.  Main stream media seems to have forgotten that Verizon has just instituted a new cell service plan that supports month-to-month no contract service.  Verizon knows what is going on and is taking steps to ensure continued revenue growth.  See my past analysis entitled, “Verizon’s Month-to-Month Plan – A Smart Move in Tough Times”.  Simply put, Ivan Siedenberg is a smart guy.

As for Europe my only comment is that during the last big meltdown in 2001, Europe lagged the United States by about a year.  I am a restructuring professional and the mantra is “be prepared for the worse and hope for the best”.  Companies need to take precautions for worse times ahead.  This period of time is far worse than 2001.  The telecom companies and Internet companies do not appear to be experiencing troubles because the troubles have yet to fully trickle down to them.

Telecom is infrastructure.  Hence, telecom will feel it last.

As for Sprint, as I had said once before expect them to lose even more customers.  Sprint is going through a restructuring therefore their will be customers getting upset and leaving.  So far, Dan Hesse is doing all of the right things to fix his company.

Investors need to consider investing for long term purposes/gains.  Forget about short term gains – it just ain’t gonna happen.  Carriers like Sprint and Verizon and AT&T are long term investments.