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Strategies to Drive Continued Growth. Lowell McAdam – President & CEO, Verizon Wireless John Killian – EVP & CFO, Verizon. January 15, 2010. Verizon Wireless

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strategies to drive continued growth

Strategies to Drive Continued Growth

Lowell McAdam – President & CEO, Verizon Wireless

John Killian – EVP & CFO, Verizon

January 15, 2010

slide2
Verizon Wireless

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, which may include or be preceded by such words as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We assume no obligation to update or revise any forward-looking statement. The following important factors, in addition to those discussed under “Risk Factors” in our Registration Statement on Form S-4 (No. 333-160446), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: changes in economic conditions; our ability to complete transactions relating to acquisitions and dispositions, including the integration of the Alltel business; changes in the ratings of our debt securities or those of Verizon Communications; adverse conditions in the credit markets impacting cost or availability of financing sufficient to meet our capital requirements; our ability to acquire and retain customers; our continued provision of satisfactory service to our customers at an acceptable price; the effects of competition; our ability to adapt to changing conditions in the wireless industry; the ability of our key suppliers to meet their obligations to us; the effects of material changes in available technology, including technology substitution and the cost of deployment; the impact of continued unionization efforts with respect to our employees; adverse regulatory and taxation developments; the effects of litigation; the impact of equipment failures, natural disasters, terrorist acts or other breaches of network or information technology security; and the effects of any required future changes in accounting assumptions.

“Safe Harbor” Statement

growth focus in 2010
Growth Focus in 2010
  • Increased scale advantage with Alltel acquisition
  • 3G network quality advertising gaining momentum
  • Take advantage of growing smartphone device portfolio and customer demand for smartphones
  • Build large base of data customers before 4G launch
  • Simplify customer experience to capture and retain high-value subscribers
streamlined device categorization
Streamlined Device Categorization

Device CategoryDescriptionExamples

Motorola DROID – Android

Over 10,000 Apps

Speech Recognition

Blackberry Storm 2– Blackberry

Quad Band GSM / 3G UMTS

Visual Voice Mail

Palm Pre Plus – Web OS

3G Hot Spots

LG Chocolate Touch

Built-in FM radio

V CAST Music with Rhapsody

Samsung Rogue

VZ Navigator

Removable Memory

LG enV3

Family Locator

Music Player

Samsung Intensity

1.3 Megapixel Camera

Bluetooth

Samsung Trance

1.3 Megapixel Camera

Bluetooth

Motorola Barrage

Push to Talk

Dashboard

data pricing strategy
Data Pricing Strategy

Simplify pricing structure

  • Reduced data pricing tiers for phones from 4 to 3
  • Mobile e-mail included as part of $10 and $30 data plans
  • No change to mobile broadband data plans

Data Plans for Phones

Usage:

Drive higher data revenue

Data Plans for Mobile Broadband*

  • Data plans now required on all 3G phones
    • $30 (Unlimited) for 3G smartphones
    • $10 minimum plan for 3G multimedia phones
    • Simple feature phones have the option of $1.99 per MB or the $10 or $30 plan

Usage:

* Mobile Broadband includes PC cards, Netbooks, MiFi

post pay pricing strategy
Post-Pay Pricing Strategy

Simplify pricing structure

  • Reduced from 40 plans to 6 single line & 8 family share plans
  • Two plan choices: “Talk” and “Talk & Text”
  • Retail prepaid mirrors single line plans +$5

Single Line

$90

$80

$60

Talk & Text

Talk

Anytime minutes:

Attract & Retain high value customers

Family Share

$150

$130

  • Better value
  • Up-sell value of high-end plans
  • Strengthen customer loyalty

$120

$100

Talk & Text

Talk

Anytime minutes:

anticipated results
Anticipated Results
  • Overall revenue growth
    • Increased data penetration
    • Gross add improvement at higher ARPU
    • Churn improvement
    • Lower-end customers migrating up to unlimited plans
    • Risk from downward migration is low
  • Drive costs from business
    • Reduce call-in rate
    • Increase self-service adoption
summary
Summary
  • New pricing strategies and strong device portfolio will help continue to grow share of high-value subscribers
  • Continue to balance growth & profitability
  • Opportunities to drive costs from business
  • Building the business of the future
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