Transcript Richard Lynch, EVP & CTO Verizon Communications

Dick Lynch
EVP and CTO
Verizon Communications
October 2009
“Safe Harbor” Statement
This presentation contains statements about expected future events and financial results that are
forward-looking and subject to risks and uncertainties. For those statements, we claim the protection
of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995. The following important factors could affect future results and could cause those results
to differ materially from those expressed in the forward-looking statements: the effects of adverse
conditions in the U.S. and international economies; the effects of competition in our markets;
materially adverse changes in labor matters, including workforce levels and labor negotiations, and
any resulting financial and/or operational impact, in the markets served by us or by companies in
which we have substantial investments; the effect of material changes in available technology; any
disruption of our suppliers’ provisioning of critical products or services; significant increases in
benefit plan costs or lower investment returns on plan assets; the impact of natural or man-made
disasters or existing or future litigation and any resulting financial impact not covered by insurance;
technology substitution; an adverse change in the ratings afforded our debt securities by nationally
accredited ratings organizations or adverse conditions in the credit markets impacting the cost,
including interest rates, and/or availability of financing; any changes in the regulatory environments
in which we operate, including any loss of or inability to renew wireless licenses, and the final results
of federal and state regulatory proceedings and judicial review of those results; the timing, scope and
financial impact of our deployment of fiber-to-the-premises broadband technology; changes in our
accounting assumptions that regulatory agencies, including the SEC, may require or that result from
changes in the accounting rules or their application, which could result in an impact on earnings; our
ability to complete acquisitions and dispositions; our ability to successfully integrate Alltel
Corporation into Verizon Wireless’s business and achieve anticipated benefits of the acquisition; and
the inability to implement our business strategies.
Reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial
measures included in this presentation can be found on our website at www.verizon.com/investor.
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Verizon Background
 Largest U.S. Carrier
 Broadest U.S.
Voice & Data Footprint
 Unmatched Global
Capabilities
 Phone
 Broadband
 HDTV
 Global IP Network
 Managed Services
 Serving 98%
of Fortune 500
2008 REVENUE
US$49.3B
US$29.9B
US$21.1B
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Superior Broadband Portfolio
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Wireless Data Trends
Terabytes
4,000
3G
3,000
2,000
2G
1,000
0
2004
2008
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LTE Expectations
Dick’s
Projection
Terabytes
4,000,000
3,000,000
LTE
2,000,000
3G
1,000,000
0
2010
2014
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Video On Demand
Content Library
2006
2008
Production VOD
Video Streams
2010
2006
User Generated VOD
2008
2010
Total Content Streams
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Broadband Networks
IP/MPLS
LTE
FiOS
IP/Ethernet
IMS
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FiOS
HDTV
More Speed
Video
2.7M
1.6M
20%
3Q08
25%
3Q09
More Channels
 Multi-room DVR
 500 All-digital Channels
 120 HD Channels
 15,000 VOD Titles per Month
 “Widgets”
 50/20 Mbps
 14.5M Premises Passed
More Services
Data
3.3M
2.2M
29%
24%
3Q08
3Q09
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LTE
More Speed
More Capacity
More Performance
 Dominant Global Standard
– Global Roaming
 Performance
– Throughput and Capacity
– Low Latency
 Scale Economics
 Lower Cost per Bit
 New Service Opportunities
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New Service Paradigm
Devices
PC
Processor Video Card Memory Hard Drive
Apps
Software & Applications
Operating
Antivirus Security
System
Customer/Tech Support
Customer/Tech Support
Or …
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Path of Openness
Duke Energy
Ford
OnStar
1996
BMW
1997
ODI
Developers
Conference
Toyota
Mercedes Benz
1998
1999
2007
ODI Announcement
60+
“Open”
Devices
2008
700 MHz
Auction
2009
LTE
Streaming
Video
LTE Selection
LTE Network
Trial
LTE Innovation
Center
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Open Services Environment
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New Communications Core
Services
Application
Servers
Application
Servers
Application
Servers
Verizon IMS
Application
Servers
Internet
Coordination
Verizon IP Network
Access
Wireless
Wired
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Elements of Our Network Vision
Best Networks
Broadband Investment
IP-Centricity
Common Core
Content “In The Network”
Applications Focus
New Service Paradigm
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