Verizon Communications

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"Verizon" redirects here: this article is about the corporation; see also Verizon Wireless, Verizon Online DSL and Verizon FiOS.

Verizon Communications, Inc.
Type	Public (NYSE: VZ)
Founded	Merger of Bell Atlantic & GTE in 2000
Headquarters	New York, New York, USA
Key people	Ivan Seidenberg, CEO & Chairman Dennis Strigl, President & Vice-Chairman
Industry	Communications Services
Products	Broadband Internet services, Television service, Local wireline and wireless telecommunication services
Revenue	$88.144 billion USD (2006) [[1]]
Operating income	$13.373 billion USD (2006)
Net income	$6.197 billion USD (2006)
Employees	217,000 (2005)
Slogan	We Never Stop Working For You.
Website	www.verizon.com

Verizon Communications (NYSE: VZ) is an American broadband and telecommunications company and a component of the Dow 30. It was formed in 2000 when Bell Atlantic, one of the Regional Bell Operating Companies, bought GTE, formerly the largest independent local exchange telephone company in the United States. Prior to its transformation into Verizon, Bell Atlantic had merged with another Regional Bell Operating Company, NYNEX, in 1997. The name is a portmanteau of veritas (Latin for truth) and horizon.

Contents 1 History 1.1 Creation 1.1.1 Merger effects 1.2 MCI Acquisition 2 Verizon services 2.1 Voice 2.2 Verizon VoiceWing 2.3 Video 2.4 Data 2.5 Directory operations 3 See also 4 Corporate governance 5 Verizon's competitors 5.1 Cellular service 5.2 Broadband 5.3 Television 6 Literary References 7 References 8 External links

[edit] History

[edit] Creation

The acquisition of GTE by Bell Atlantic, on June 30, 2000, which formed Verizon, 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 New York Stock Exchange (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.

Genuity was formerly the Internet division of GTE Corp and spun off in 2000.^[1] Level 3 Communications acquired the bankrupt ISP in 2002 for only $137 million; a bargain-basement price considering the $616 million that a pre-Bell Atlantic-merger GTE paid for Genuity (then BBN Planet) in 1997.^[2]

According to reports, when Bell Atlantic decided to create Verizon, they attempted to register "Verizon Sucks" domain names. In response, 2600 magazine registered the domain name "verizonreallysucks.com." Bell Atlantic reportedly sent a cease and desist letter. 2600 Magazine then registered "VerizonShouldSpendMoreTimeFixingItsNetworkAndLessMoneyOnLawyers.com" Bell Atlantic reportedly withdrew its cease and desist letter, and caselaw has come to affirm that "sucks" domain names are generally protected under the US First Amendment. ^{[3] [4] [5]}

[edit] Merger effects

Note this section refers to land lines only, as Verizon Wireless operates nationwide.

Verizon shares were made a component of the Dow Jones Industrial Average on April 8, 2004.^[6] 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. The primary states that it provides service to include:

• Southwestern Connecticut
• Delaware
• Maine*
• Maryland
• Massachusetts*
• New Hampshire*
• New Jersey
• New York
• Pennsylvania**
• Rhode Island*
• Vermont*
• Virginia**
• West Virginia
• Washington, DC

These states are served by the following renamed Bell Operating Companies:

• Verizon Delaware, Inc. – Also serves a portion of southeastern Pennsylvania
• Verizon Maryland, Inc.
• Verizon New England Telephone & Telegraph, Inc. – noted with a (*)
• Verizon New Jersey, Inc.
• Verizon New York Telephone, Inc. – Also serves Southwestern Connecticut
• Verizon Pennsylvania, Inc.
• Verizon Virginia, Inc.
• Verizon Washington, D.C., Inc.
• Verizon West Virginia, Inc.

(**) Also served by GTE operating companies (refer below)

It also provides service to secondary markets (mostly from its acquisition of GTE) in:

• Arizona*****
• California****, *****
• Florida
• Idaho****
• Illinois**
• Indiana***
• Michigan***
• Nevada*****
• North Carolina*
• Ohio**
• Oregon****
• Puerto Rico
• South Carolina*
• Texas
• Washington****
• Wisconsin**

These states are served by these operating companies:

• GTE Southwest, Inc. dba Verizon Southwest,Inc., which serves only Texas.
• GTE Florida, Inc. dba Verizon Florida, Inc.
• Verizon South, Inc. (marked with a *)
• Verizon North, Inc. (marked with a **)
• Contel of the South, Inc. dba Verizon Mid-States, Inc. (marked with a ***) Also served by Verizon North.
• Verizon Northwest, Inc.(marked with a ****) Operations in California do business as "Verizon West Coast, Inc."
• Verizon California, Inc. (marked with a *****)

Due to the rigorous climate and high costs, GTE Alaska was sold to Alaska Power and Telephone Company rather than be merged with Verizon.

Verizon also owns stakes in some international communications companies, most notably 23.14% of Vodafone Italy. On April 3, 2006 Verizon agreed to sell its stakes in Verizon Dominicana (operating in the Dominican Republic), CANTV of Venezuela, and Telecomunicaciones de Puerto Rico, Inc. (TELPRI) in Puerto Rico to Telmex and América Móvil for $3.7 billion.[2] Verizon's other international investment is 50% ownership of Gibraltar NYNEX Communications.

In 2002, Verizon sold GTE's former telephone operations in 3 states: Missouri and Alabama operations were sold to CenturyTel, and Kentucky operations were sold to Alltel, which later spun off its landline operations as Windstream. In 2005, Verizon sold off GTE's former telephone operations in Hawaii to The Carlyle Group, This operation is now known as Hawaiian Telcom. As of January 16, 2007, Verizon's operations in Maine, New Hampshire, and Vermont are going to be split off into a new Bell Operating Company, spun off, and merged with FairPoint Communications.

It is expected in late 2007, that U.S. Cellular is to purchase Verizon Wireless and then becomes a national carrier.^{[citation needed]}

[edit] MCI Acquisition

On February 14, 2005, Verizon agreed to acquire MCI, formerly WorldCom, after SBC Communications agreed to acquire AT&T just a few weeks earlier.

Media coverage has focused on several ways in which that acquisition, once completed, would benefit Verizon, including economies of scale derived from a potential productivity boost to be achieved via the elimination of thousands of jobs at the combined company, and access to the large base of business customers currently served by MCI. The real benefit to Verizon was the acquisition of long-haul lines. The bulk of Verizon's business is concentrated in the eastern United States. This not only renders the company, effectively, a regional phone company, but also forces it to pay usage fees to long-haul carriers, such as former MCI, to complete calls for its customers whenever those calls go outside the Verizon "footprint". That need is obviated by the MCI acquisition and was key in the long term market position strategy. By January 6, 2006, MCI was incorporated into Verizon with the name Verizon Business. With this merger, Verizon also acquired the naming rights to the Washington, DC home of the Washington Wizards and the Washington Capitals, the Verizon Center (formerly known as the MCI Center). Just prior to the acquisition, MCI had purchased an internet services company, Totality.

When Verizon acquired MCI, some had expected that Verizon would act against the many senders of e-mail spam hosted on the MCI network through its UUNet subsidiary.[3] As of February 2007, the spam tracking organization Spamhaus listed Verizon as the network harboring the greatest number of spam senders worldwide[4]. These range from small operations to such well-known major spammers as Brian Haberstroh[5], Eric Reinertsen.[6], and Vendare Media [7][8].

Verizon, with MCI, was the largest telecommunications company in the United States based on sales of $75.11 billion, profits of $7.4 billion and assets of $168.13 billion. After completion of the BellSouth/AT&T merger, AT&T became the largest telecommunications company in the world in terms of assets and profits.

Rank	Company	Sales	Profits	Assets	Market Value
25	Verizon Communications	75.11	7.40	168.13	93.18
49	AT&T	43.86	4.79	145.63	107.04
131	BellSouth	20.55	3.29	56.55	57.82
	Merged	64.41	8.08	202.18	164.86

http://www.forbes.com/lists/2006/18/06f2k_The-Forbes-2000_Rank.html

[edit] Verizon services

[edit] Voice

Verizon provides several different types of land line services - standard POTS (Plain Old Telephone Service) service as well as VoIP (Voice Over Internet Protocol) and optical fiber line services. In addition, Verizon offers long distance services. Verizon also offers a product that is a joint venture with Microsoft called "Verizon Web Calling" A type of voip service used within Windows Live Messenger

[edit] Verizon VoiceWing

Verizon VoiceWing is a Voice over IP (VoIP) service offered by Verizon that offers phone service over a broadband Internet connection. A DSL, cable, or Verizon FiOS Internet connection, a regular telephone, a router, and a telephone adaptor are required for service.

[edit] Video

Verizon launched its FiOS Video service in Keller, Texas on September 22, 2005. FiOS TV ^[7] uses an optical fiber network to deliver more than 330 total channels, more than 180 digital video and music channels more than 20 high-definition channels, and 1,800 video-on-demand titles.

[edit] Data

Verizon provides DSL (Digital Subscriber Line) Internetasdasdasd service in many areas where it offers phone service. See Verizon Online DSL.

Verizon recently began offering FTTP (Fiber to the Premises, or Fiber to the Home) to some subscribers. Verizon calls this "FiOS Internet".^[8]

[edit] Directory operations

Main article: Idearc Media

The Yellow Pages business of Verizon known as SuperPages, and is a Texas-based sales, publishing and related services with 1,200 directory titles and a circulation of about 121 million copies in 41 states. The web site receives approximately 17 million visitors a month. It had an operating revenue of $3.6 billion in 2004 and employs 7,300 nationwide.^[9] In a move to leverage against higher traffic sites, Superpages linked up with Google to provide search advertising services to its millions of listed businesses. SuperPages will offer its advertisers the ability to bid for Google search terms.^[10]

With an estimated $17 billion in assets, Verizon has spun-off the business unit to finance its expansion in wireless and high-speed Internet services.^[11] Verizon would not be the first Baby Bell to rid itself of its directory publishing operations; Qwest sold off its QwestDex directory services to become Dex Media, and Illinois Bell, now known as AT&T, sold its directory operations to RH Donnelley in 1990 ("AT&T Yellow Pages published by RH Donnelley").

[edit] See also

• Airfone — Air-ground radiotelephone service offered by Verizon
• Verizon SmartPark — Advanced Telecommunications Services
• Verizon Wireless
• Idearc
• Playlinc

[edit] Corporate governance

Current members of the board of directors of Verizon Communications are, James Barker, James Foucault, Richard Carrión, Robert Lane, Sandra Moose, Joseph Neubauer, Thomas O'Brien, Hugh Price, Ivan Seidenberg, Walter Shipley, John R. Stafford, and Robert Storey.

[edit] Verizon's competitors

[edit] Cellular service

• AT&T Mobility
• T-Mobile
• Alltel
• MetroPCS
• Sprint

[edit] Broadband

• Comcast
• Time Warner Cable
• Cablevision
• RCN
• Qwest

[edit] Television

• Comcast
• DirecTV
• Dish Network
• Time Warner Cable
• RCN
• Cablevision

[edit] Literary References

• On the first page of Stephen King's novel Cell, about a wildfire of murderous insanity spread by cellphones, King quotes the famous line from the Verizon Wireless TV ad campaign: "Can you hear me now?"

[edit] References

1. ^ Haley, Colin C.. "Genuity Jilted by Verizon, Mulls Options", Internet.com, 25 July 2002.
2. ^ Pappalardo, Denise. "Changes afoot for Genuity customers", Network World, 10 February 2003.
3. ^ Real Cybersquatting Really Sucks, WIRED May 9, 2000
4. ^ Verizon Attacks Critical Domain Name, 2600 Magazine May 8, 2000
5. ^ Cybertelecom :: Anti Cybersquatter Protection Act :: Gripe Sites
6. ^ Isadore, Chris. "AT&T, Kodak, IP out of Dow", CNN/Money, 1 April 2004.
7. ^ Verizon FiOS TV: FiOS TV. Retrieved on February 12, 2006.
8. ^ Verizon FiOS: FiOS for Home. Retrieved on September 6, 2005.
9. ^ "Verizon may sell $17 billion directory services", Billings Gazette, December 7, 2005.
10. ^ "Verizon online directory in ad deal with Google", Reuters, 28 March 2006.
11. ^ Ranii, David. "Donnelley likely to pass on Verizon directories", The News & Observer, 6 December 2005.

[edit] External links

• Official site
• Verizon VoiceWing - Official site
• Verizon Wireless
• Verizon Business
• A History of Verizon Communications
• Verizon stock quote
• "Well Connected" Company Profile by The Center for Public Integrity