Verizon Communications's wireless business continues to see solid growth, said Denny Strigl, president and chief operating officer of Verizon.

The company expects to see solid wireless net subscriber growth in the third quarter, he said during a Thursday conference hosted by Goldman Sachs. His optimism comes amid worries over the threat of the Apple Inc. (AAPL) iPhone.

The wireless business is jointly owned by Verizon and Vodafone Group. "We are on target for our long-range plans," Strigl said.

The company continues to push for more cuts in spending. Strigl said he expects to make further cuts in the telco side. Verizon continues to see cash-flow margins of 43% to 45%. On the landline business, Strigl said he sees margins between 30% and 33%.

Regarding any potential impact from Wall Street's turmoil, Strigl said he sees a minor impact from the financial-services industry. That sector doesn't contribute a significant amount of revenue.

On landline competition, Strigl said he would never write off the threat from cable. In the second quarter, Verizon lost market share and was beaten out by the cable competitors in the high-speed Internet business. Verizon didn't put out a more aggressive promotion to replace the successful free-TV offer it presented earlier in the year, Strigl acknowledged.

Strigl said Verizon is having more success this quarter than in the last one with its Internet business.

Even as the company spends $18 billion to upgrade its network, it has been selling off landline assets. The company sold its New England assets to Fairpoint Communications. Strigl said there are no current plans to dispose of any more access lines, but the company wouldn't hesitate to do it under the right circumstances.

At the same time, Verizon Wireless has been augmenting its assets with the pending acquisition of Alltel Corp. Strigl said he is optimistic the deal will close by the end of the year. While he acknowledged the more difficult financial environment, he said it wouldn't affect the closing of the deal.

"Is it a tedious process? Yes. Are we any less confident in our ability? No," he said.

Strigl also reiterated the company's goal of trialing its fourth-generation wireless technology, called LTE, by next year, with commercial availability by 2010. Others in the industry have expressed skepticism over such an aggressive timeline.

Strigl said Verizon's view on its relationship with Vodafone. He reiterated the company's desire to buy the rest of Verizon Wireless, but said he was comfortable with their relationship.

Source:Dow Jones