Verizon Communications Inc. (NYSE: VZ, NASDAQ: VZ) is a global broadband and telecommunications company and a component of the Dow Jones Industrial Average. It started in 1983 as Bell Atlantic (based in Philadelphia) with a footprint covering New Jersey to Virginia and NYNEX (based in New York City) with a footprint spanning from New York to Maine that emerged as part of the 1984 AT&T breakup into seven "Baby Bells." Prior to its transformation into Verizon, a result of the Bell Atlantic–GTE merger, Bell Atlantic merged with Regional Bell Operating Company, NYNEX, in 1997. The name Verizon is a portmanteau of veritas and horizon,[2] and its pronunciation rhymes with horizon. The company's headquarters are located in the Verizon Building at 140 West Street in Lower Manhattan, New York City.
Verizon was founded as Bell Atlantic Corporation. It was one of the seven Baby Bells that were formed due to an anti-trust judgment against AT&T Co. Bell Atlantic then inherited seven of the Bell Operating Companies from American Telephone & Telegraph Company (later known as AT&T Corp.) following its breakup. Bell Atlantic's original roster of operating companies included:
The Bell Telephone Company of Pennsylvania
New Jersey Bell Telephone Company
The Diamond State Telephone Company
The Chesapeake and Potomac Telephone Company
The Chesapeake and Potomac Telephone Company of Maryland
The Chesapeake and Potomac Telephone Company of Virginia
The Chesapeake and Potomac Telephone Company of West Virginia
Bell Atlantic originally operated in the U.S. states of New Jersey, Pennsylvania, Delaware, Maryland, West Virginia, and Virginia, as well as Washington, D.C.
In 1994, Bell Atlantic became the first Regional Bell Operating Company to entirely drop the original names of its original operating companies. Operating company titles were simplified to "Bell Atlanic - state name".
In 1996, CEO and Chairman Raymond W. Smith orchestrated Bell Atlantic's merger with NYNEX CEO Ivan G. Seidenberg. When it merged, it moved its corporate headquarters from Philadelphia to New York City where CEO's Smith and Seidenberg shared Co-CEO duties. NYNEX was consolidated into this name by 1997.
Prior to its merger with GTE, Bell Atlantic traded on the New York Stock Exchange (NYSE) under the "BEL" symbol.
Verizon Communications Inc. (Verizon), incorporated in 1983, is a holding company. Verizon through its subsidiaries is a provider of communications services. The Company has two segments: Domestic Wireless and Wireline. Its Domestic Wireless’ communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline’s communications products and services include voice, Internet access, broadband video and data, Internet protocol (IP) network services, network access, long distance and other services. The Company provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers in the United States and in over 150 other countries around the world. During the year ended December 31, 2010, Verizon launched its 4G LTE network in 38 metropolitan areas and more than 60 commercial airports in the United States. In April 2011, the Company acquired Terremark Worldwide, Inc.
Domestic Wireless
Verizon Wireless provides wireless voice and data services. During the year ended December 31, 2010, Domestic Wireless revenues were accounted approximately 60% of Verizon’s revenues. The Company offers voice services on a postpaid and prepaid. As of December 31, 2010, approximately 88% of its retail customers received it voice services on a postpaid. It offers a variety of packages for voice services includes Nationwide Calling Plans, Nationwide Family SharePlans and Nationwide Small Business SharePlans, and Nationwide Business Plans. It offers a variety of data services and applications, such as Internet access through its smartphones and feature phones, mobile broadband service, messaging services, business-focused, location-based services, and consumer-focused multimedia.
The Company offers several categories of wireless devices, including smartphones and feature phones, as well as Internet access devices, such as computers, tablets, Mobile Hotspot devices and universal serial bus (USB) modems. The phones it offers are EV-DO enabled, and all of these phones are compliant with the FCC’s Enhanced 911 requirements. The Company also offers a number of devices that, in addition to working on its EV-DO network, enable its customers to access global system for mobile communications (GSM) networks. Its device line-up includes an array of smartphones that are enabled to utilize its EV-DO (Revision A) data service and has operating platforms, such as Android, iOS 4, BlackBerry OS, webOS and Windows Mobile. The Company offers smartphones from Motorola, Apple, RIM, HTC, LG, Palm and Samsung. Some of its feature phones are EV-DO-enabled and have HTML-browsing capability.
The Company offers through EV-DO-enabled phones connected to their computers with connector cables, or through the use of certain laptop computers and netbooks with embedded EV-DO Mobile Broadband modules offered by original equipment manufacturers (OEMs). In addition, it offers devices that provide a mobile wireless fidelity (Wi-Fi) connection. It also offers a third generation (3G)-enabled, Android-based tablet, the Samsung Galaxy Tab, which runs on the Company’s 3G network, and the Apple iPad, which also runs on its 3G network when used in conjunction with its Mobile Hotspot devices. The Company’s primary network technology platform is code division multiple access (CDMA), based on spread-spectrum digital radio technology. CDMA-1XRTT technology is deployed in virtually all of the cell sites in the Company’s CDMA network.
Wireline
Verizon Wireline segment provides customers with communications products and services that include voice, Internet access, broadband video and data, IP network services, network access, long distance and other services. During 2010, Wireline revenues accounted approximately 39% of its revenues. The Company organizes its service and product offerings by the primary markets: mass markets, global enterprise, global wholesale and other. Its Mass Markets operations provide local exchange (basic service and end-user access), long distance (including regional toll), broadband services (including Internet and FiOS Internet) and FiOS TV services to residential and small business subscribers. In partnership with DIRECTV, Verizon also offers satellite television service to enable double- and triple-play offers in non-FiOS markets. During 2010, Mass Markets revenue accounted approximately 40% of its revenues.
The Company offers Verizon’s fiber-optic TV and video service, as well as market a variety of DIRECTV packages that are delivered over satellite systems. As of December 31, 2010, FiOS TV is available to approximately 12.4 million homes across 11 states: New York, New Jersey, California, Delaware, Texas, Florida, Maryland, Pennsylvania, Massachusetts, Virginia and Rhode Island, as well as the District of Columbia. It offers high speed Internet and FiOS broadband data products with varying downstream and upstream processing speeds. It offers packages that include local exchange, regional, long distance, wire maintenance and voice messaging services, as well as voice over Internet protocol (VoIP) services. It also offers calling plans to bundle landline and wireless services with calling features and unlimited calling between a Verizon customer’s home phone and wireless handset.
Global Enterprise offers voice, data and Internet communications services to medium and large business customers, multinational corporations and state and federal government customers. During 2010, Global Enterprise revenues accounted approximately 38% of Wireline’s revenues. Core voice services consist of a portfolio of global voice solutions utilizing traditional voice and newer VoIP technologies. Core data services include frame relay, automated teller machine (ATM) and private line access technologies. Core services also include providing customer premises equipment, installation, maintenance and site services.
The Company has professional services personnel in more than 30 countries to assist customers in adopting new information technology (IT) solutions, such as application management, infrastructure services, unified communications, contact center solutions and security and business continuity services. It has introduced new offerings for multinational corporate and government customers, including IT consulting and managed services to help enterprises transition to cloud computing technologies; telehealth collaboration services; consulting services designed to help track and protect corporate data; a cloud-based application performance monitoring service, and solutions to prevent hacker threats to corporate applications.
The Company offers a portfolio of voice, data, value-added business and local telecommunications services to an array of customers, including interexchange carriers, resellers, cable service operators, Internet service providers, network and systems integrators and content data network providers. These include Voice Services, Data Services, Value Added Business Services and Local Services. Other services include services as local exchange and long distance services derived from former mass market customers, operator services, pay phone, card services and supply sales, as well as dial around services including 10-10-987, 10-10-220, 1-800-COLLECT and prepaid cards. During 2010, other revenues accounted approximately 2% of Wireline’s revenues. It provides live 24/7 customer support on all FiOS sales and service issues. It has also undertaken several customer service initiatives, including its FiOS Worry Free Guarantee for consumers and small businesses and its Service Level Agreements for Enterprise and Global Wholesale.
The Company competes with AT&T, Sprint Nextel Corporation, T-Mobile USA, US Cellular, Metro PCS, Leap Wireless, Skype, Google and Apple.
Bell Atlantic merged with GTE on June 30, 2000 and changed its name to Verizon Communications Inc. It was among the largest mergers in United States business history. It was the result of a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City since the merger with NYNEX in 1996, and GTE, which was in the process of moving its headquarters from Stamford, Connecticut, to Irving, Texas.
The Bell Atlantic–GTE merger, priced at more than $52 billion at the time of the announcement, closed nearly two years later, following analysis and approvals by Bell Atlantic and GTE shareowners, 27 state regulatory commissions and the Federal Communications Commission (FCC), and clearance from the United States Department of Justice (DoJ) and various international agencies.
The merger of Bell Atlantic and GTE, to form Verizon Communications, became effective on June 30, 2000, with an exchange ratio of 1.22 shares of Verizon Communications Common Stock for each share of GTE Common Stock owned. Fractional shares resulting from the exchange of GTE stock into Verizon Communications shares were sold at a price of $55.00 per share. Verizon began trading on the NYSE under its new "VZ" symbol on Monday, July 3, 2000.
Meanwhile, on September 21, 1999, Bell Atlantic and UK-based Vodafone AirTouch Plc (now Vodafone Group Plc) announced that they had agreed to create a new wireless business with a national footprint, a single brand and a common digital technology – composed of Bell Atlantic's and Vodafone's U.S. wireless assets (Bell Atlantic Mobile (which was previously called Bell Atlantic-NYNEX Mobile by 1997), AirTouch Cellular, PrimeCo Personal Communications, and AirTouch Paging).
This wireless joint venture received regulatory approval in six months, and began operations as Verizon Wireless on April 4, 2000, kicking off the new "Verizon" brand name. GTE's wireless operations became part of Verizon Wireless – creating what was initially the nation's largest wireless company before Cingular Wireless acquired AT&T Wireless in 2004 – when the Bell Atlantic–GTE merger closed nearly three months later. Verizon then became the majority owner (55%) of Verizon Wireless.
Verizon shares were made a component of the Dow Jones Industrial Average on April 8, 2004.[4] Verizon currently has 140.3 million land lines in service. With the MCI merger, it has more than 250,000 employees. Verizon serves customers throughout much of the United States.
OVERALL
Beta: 0.67
Market Cap (Mil.): $105,411.50
Shares Outstanding (Mil.): 2,829.08
Annual Dividend: 1.95
Yield (%): 5.23
FINANCIALS
VZ.N Industry Sector
P/E (TTM): 29.78 21.33 17.07
EPS (TTM): -3.73 -- --
ROI: 7.43 6.16 7.56
ROE: 8.92 8.71 10.53
Name Age Since Current Position
Ivan Seidenberg 64 2004 Chairman of the Board, Chief Executive Officer
Lowell McAdam 56 2011 President, Chief Operating Officer, Director
Francis Shammo 50 2010 Chief Financial Officer, Executive Vice President
Roger Gurnani 50 2010 Executive Vice President, Chief Information Officer
Anthony Melone 50 2010 Executive Vice President, Chief Technology Officer
Randal Milch 52 2008 Executive Vice President, General Counsel
Marc Reed 52 2004 Executive Vice President - Human Resources
John Diercksen 61 2003 Executive Vice President - Strategy, Development and Planning
Thomas Tauke 60 2004 Executive Vice President - Public Affairs, Policy and Communications
Virginia Ruesterholz 49 2009 Executive Vice President, President – Verizon Services Operations
Daniel Mead 57 2010 Executive Vice President, President, Chief Executive Officer – Verizon Wireless Joint Venture
Robert Barish 49 2009 Senior Vice President, Controller
Richard Carrion 58 1997 Independent Director
Sandra Moose 69 2008 Presiding Independent Director
Joseph Neubauer 69 1995 Independent Director
Thomas O'Brien 74 1987 Independent Director
Hugh Price 69 1997 Independent Director
John Snow 71 2007 Independent Director
John Stafford 72 1997 Independent Director
Robert Lane 62 2004 Independent Director
Donald Nicolaisen 66 2005 Independent Director
Clarence Otis 54 2006 Independent Director
Martha Keeth 64 2006 Independent Director
Rodney Slater 56 2010 Independent Director
COMPANY ADDRESS
Verizon Communications Inc
140 West Street
New York NY 10007
Verizon was founded as Bell Atlantic Corporation. It was one of the seven Baby Bells that were formed due to an anti-trust judgment against AT&T Co. Bell Atlantic then inherited seven of the Bell Operating Companies from American Telephone & Telegraph Company (later known as AT&T Corp.) following its breakup. Bell Atlantic's original roster of operating companies included:
The Bell Telephone Company of Pennsylvania
New Jersey Bell Telephone Company
The Diamond State Telephone Company
The Chesapeake and Potomac Telephone Company
The Chesapeake and Potomac Telephone Company of Maryland
The Chesapeake and Potomac Telephone Company of Virginia
The Chesapeake and Potomac Telephone Company of West Virginia
Bell Atlantic originally operated in the U.S. states of New Jersey, Pennsylvania, Delaware, Maryland, West Virginia, and Virginia, as well as Washington, D.C.
In 1994, Bell Atlantic became the first Regional Bell Operating Company to entirely drop the original names of its original operating companies. Operating company titles were simplified to "Bell Atlanic - state name".
In 1996, CEO and Chairman Raymond W. Smith orchestrated Bell Atlantic's merger with NYNEX CEO Ivan G. Seidenberg. When it merged, it moved its corporate headquarters from Philadelphia to New York City where CEO's Smith and Seidenberg shared Co-CEO duties. NYNEX was consolidated into this name by 1997.
Prior to its merger with GTE, Bell Atlantic traded on the New York Stock Exchange (NYSE) under the "BEL" symbol.
Verizon Communications Inc. (Verizon), incorporated in 1983, is a holding company. Verizon through its subsidiaries is a provider of communications services. The Company has two segments: Domestic Wireless and Wireline. Its Domestic Wireless’ communications products and services include wireless voice and data services and equipment sales, which are provided to consumer, business and government customers across the United States. Wireline’s communications products and services include voice, Internet access, broadband video and data, Internet protocol (IP) network services, network access, long distance and other services. The Company provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers in the United States and in over 150 other countries around the world. During the year ended December 31, 2010, Verizon launched its 4G LTE network in 38 metropolitan areas and more than 60 commercial airports in the United States. In April 2011, the Company acquired Terremark Worldwide, Inc.
Domestic Wireless
Verizon Wireless provides wireless voice and data services. During the year ended December 31, 2010, Domestic Wireless revenues were accounted approximately 60% of Verizon’s revenues. The Company offers voice services on a postpaid and prepaid. As of December 31, 2010, approximately 88% of its retail customers received it voice services on a postpaid. It offers a variety of packages for voice services includes Nationwide Calling Plans, Nationwide Family SharePlans and Nationwide Small Business SharePlans, and Nationwide Business Plans. It offers a variety of data services and applications, such as Internet access through its smartphones and feature phones, mobile broadband service, messaging services, business-focused, location-based services, and consumer-focused multimedia.
The Company offers several categories of wireless devices, including smartphones and feature phones, as well as Internet access devices, such as computers, tablets, Mobile Hotspot devices and universal serial bus (USB) modems. The phones it offers are EV-DO enabled, and all of these phones are compliant with the FCC’s Enhanced 911 requirements. The Company also offers a number of devices that, in addition to working on its EV-DO network, enable its customers to access global system for mobile communications (GSM) networks. Its device line-up includes an array of smartphones that are enabled to utilize its EV-DO (Revision A) data service and has operating platforms, such as Android, iOS 4, BlackBerry OS, webOS and Windows Mobile. The Company offers smartphones from Motorola, Apple, RIM, HTC, LG, Palm and Samsung. Some of its feature phones are EV-DO-enabled and have HTML-browsing capability.
The Company offers through EV-DO-enabled phones connected to their computers with connector cables, or through the use of certain laptop computers and netbooks with embedded EV-DO Mobile Broadband modules offered by original equipment manufacturers (OEMs). In addition, it offers devices that provide a mobile wireless fidelity (Wi-Fi) connection. It also offers a third generation (3G)-enabled, Android-based tablet, the Samsung Galaxy Tab, which runs on the Company’s 3G network, and the Apple iPad, which also runs on its 3G network when used in conjunction with its Mobile Hotspot devices. The Company’s primary network technology platform is code division multiple access (CDMA), based on spread-spectrum digital radio technology. CDMA-1XRTT technology is deployed in virtually all of the cell sites in the Company’s CDMA network.
Wireline
Verizon Wireline segment provides customers with communications products and services that include voice, Internet access, broadband video and data, IP network services, network access, long distance and other services. During 2010, Wireline revenues accounted approximately 39% of its revenues. The Company organizes its service and product offerings by the primary markets: mass markets, global enterprise, global wholesale and other. Its Mass Markets operations provide local exchange (basic service and end-user access), long distance (including regional toll), broadband services (including Internet and FiOS Internet) and FiOS TV services to residential and small business subscribers. In partnership with DIRECTV, Verizon also offers satellite television service to enable double- and triple-play offers in non-FiOS markets. During 2010, Mass Markets revenue accounted approximately 40% of its revenues.
The Company offers Verizon’s fiber-optic TV and video service, as well as market a variety of DIRECTV packages that are delivered over satellite systems. As of December 31, 2010, FiOS TV is available to approximately 12.4 million homes across 11 states: New York, New Jersey, California, Delaware, Texas, Florida, Maryland, Pennsylvania, Massachusetts, Virginia and Rhode Island, as well as the District of Columbia. It offers high speed Internet and FiOS broadband data products with varying downstream and upstream processing speeds. It offers packages that include local exchange, regional, long distance, wire maintenance and voice messaging services, as well as voice over Internet protocol (VoIP) services. It also offers calling plans to bundle landline and wireless services with calling features and unlimited calling between a Verizon customer’s home phone and wireless handset.
Global Enterprise offers voice, data and Internet communications services to medium and large business customers, multinational corporations and state and federal government customers. During 2010, Global Enterprise revenues accounted approximately 38% of Wireline’s revenues. Core voice services consist of a portfolio of global voice solutions utilizing traditional voice and newer VoIP technologies. Core data services include frame relay, automated teller machine (ATM) and private line access technologies. Core services also include providing customer premises equipment, installation, maintenance and site services.
The Company has professional services personnel in more than 30 countries to assist customers in adopting new information technology (IT) solutions, such as application management, infrastructure services, unified communications, contact center solutions and security and business continuity services. It has introduced new offerings for multinational corporate and government customers, including IT consulting and managed services to help enterprises transition to cloud computing technologies; telehealth collaboration services; consulting services designed to help track and protect corporate data; a cloud-based application performance monitoring service, and solutions to prevent hacker threats to corporate applications.
The Company offers a portfolio of voice, data, value-added business and local telecommunications services to an array of customers, including interexchange carriers, resellers, cable service operators, Internet service providers, network and systems integrators and content data network providers. These include Voice Services, Data Services, Value Added Business Services and Local Services. Other services include services as local exchange and long distance services derived from former mass market customers, operator services, pay phone, card services and supply sales, as well as dial around services including 10-10-987, 10-10-220, 1-800-COLLECT and prepaid cards. During 2010, other revenues accounted approximately 2% of Wireline’s revenues. It provides live 24/7 customer support on all FiOS sales and service issues. It has also undertaken several customer service initiatives, including its FiOS Worry Free Guarantee for consumers and small businesses and its Service Level Agreements for Enterprise and Global Wholesale.
The Company competes with AT&T, Sprint Nextel Corporation, T-Mobile USA, US Cellular, Metro PCS, Leap Wireless, Skype, Google and Apple.
Bell Atlantic merged with GTE on June 30, 2000 and changed its name to Verizon Communications Inc. It was among the largest mergers in United States business history. It was the result of a definitive merger agreement, dated July 27, 1998, between Bell Atlantic, based in New York City since the merger with NYNEX in 1996, and GTE, which was in the process of moving its headquarters from Stamford, Connecticut, to Irving, Texas.
The Bell Atlantic–GTE merger, priced at more than $52 billion at the time of the announcement, closed nearly two years later, following analysis and approvals by Bell Atlantic and GTE shareowners, 27 state regulatory commissions and the Federal Communications Commission (FCC), and clearance from the United States Department of Justice (DoJ) and various international agencies.
The merger of Bell Atlantic and GTE, to form Verizon Communications, became effective on June 30, 2000, with an exchange ratio of 1.22 shares of Verizon Communications Common Stock for each share of GTE Common Stock owned. Fractional shares resulting from the exchange of GTE stock into Verizon Communications shares were sold at a price of $55.00 per share. Verizon began trading on the NYSE under its new "VZ" symbol on Monday, July 3, 2000.
Meanwhile, on September 21, 1999, Bell Atlantic and UK-based Vodafone AirTouch Plc (now Vodafone Group Plc) announced that they had agreed to create a new wireless business with a national footprint, a single brand and a common digital technology – composed of Bell Atlantic's and Vodafone's U.S. wireless assets (Bell Atlantic Mobile (which was previously called Bell Atlantic-NYNEX Mobile by 1997), AirTouch Cellular, PrimeCo Personal Communications, and AirTouch Paging).
This wireless joint venture received regulatory approval in six months, and began operations as Verizon Wireless on April 4, 2000, kicking off the new "Verizon" brand name. GTE's wireless operations became part of Verizon Wireless – creating what was initially the nation's largest wireless company before Cingular Wireless acquired AT&T Wireless in 2004 – when the Bell Atlantic–GTE merger closed nearly three months later. Verizon then became the majority owner (55%) of Verizon Wireless.
Verizon shares were made a component of the Dow Jones Industrial Average on April 8, 2004.[4] Verizon currently has 140.3 million land lines in service. With the MCI merger, it has more than 250,000 employees. Verizon serves customers throughout much of the United States.
OVERALL
Beta: 0.67
Market Cap (Mil.): $105,411.50
Shares Outstanding (Mil.): 2,829.08
Annual Dividend: 1.95
Yield (%): 5.23
FINANCIALS
VZ.N Industry Sector
P/E (TTM): 29.78 21.33 17.07
EPS (TTM): -3.73 -- --
ROI: 7.43 6.16 7.56
ROE: 8.92 8.71 10.53
Name Age Since Current Position
Ivan Seidenberg 64 2004 Chairman of the Board, Chief Executive Officer
Lowell McAdam 56 2011 President, Chief Operating Officer, Director
Francis Shammo 50 2010 Chief Financial Officer, Executive Vice President
Roger Gurnani 50 2010 Executive Vice President, Chief Information Officer
Anthony Melone 50 2010 Executive Vice President, Chief Technology Officer
Randal Milch 52 2008 Executive Vice President, General Counsel
Marc Reed 52 2004 Executive Vice President - Human Resources
John Diercksen 61 2003 Executive Vice President - Strategy, Development and Planning
Thomas Tauke 60 2004 Executive Vice President - Public Affairs, Policy and Communications
Virginia Ruesterholz 49 2009 Executive Vice President, President – Verizon Services Operations
Daniel Mead 57 2010 Executive Vice President, President, Chief Executive Officer – Verizon Wireless Joint Venture
Robert Barish 49 2009 Senior Vice President, Controller
Richard Carrion 58 1997 Independent Director
Sandra Moose 69 2008 Presiding Independent Director
Joseph Neubauer 69 1995 Independent Director
Thomas O'Brien 74 1987 Independent Director
Hugh Price 69 1997 Independent Director
John Snow 71 2007 Independent Director
John Stafford 72 1997 Independent Director
Robert Lane 62 2004 Independent Director
Donald Nicolaisen 66 2005 Independent Director
Clarence Otis 54 2006 Independent Director
Martha Keeth 64 2006 Independent Director
Rodney Slater 56 2010 Independent Director
COMPANY ADDRESS
Verizon Communications Inc
140 West Street
New York NY 10007