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Dick Lynch. EVP and CTO Verizon Communications. October 2009. “Safe Harbor” Statement.

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Dick Lynch

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Dick lynch

Dick Lynch

EVP and CTOVerizon Communications

October 2009


Safe harbor statement

“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.

2


Verizon background

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

3


Superior broadband portfolio

Superior Broadband Portfolio

4


Wireless data trends

3G

2G

Wireless Data Trends

Terabytes

4,000

3,000

2,000

1,000

0

2004

2008

5


Lte expectations

LTE Expectations

Dick’s

Projection

LTE

3G

Terabytes

4,000,000

3,000,000

2,000,000

1,000,000

0

2010

2014


Video on demand

Video On Demand

Content Library

Video Streams

2006

2008

2010

2006

2008

2010

Production VOD

User Generated VOD

Total Content Streams

7


Broadband networks

Broadband Networks

IP/MPLS

LTE

FiOS

IP/Ethernet

IMS

8


Dick lynch

FiOS

Multi-room DVR

500 All-digital Channels

120 HD Channels

15,000 VOD Titles per Month

“Widgets”

50/20 Mbps

14.5M Premises Passed

HDTV

More Channels

More Speed

More Services

Data

Video

3.3M

2.7M

2.2M

1.6M

29%

25%

24%

20%

3Q08

3Q09

3Q08

3Q09


Dick lynch

LTE

Dominant Global Standard

Global Roaming

Performance

Throughput and Capacity

Low Latency

Scale Economics

Lower Cost per Bit

New Service Opportunities

More Speed

More Capacity

More Performance


New service paradigm

New Service Paradigm

PC

Devices

Processor

Video Card

Memory

Hard Drive

Software & Applications

Apps

Operating

System

Antivirus

Security

Customer/Tech Support

Customer/Tech Support

Or …


Path of openness

Path of Openness

Duke Energy

ODIDevelopers

Conference

60+

“Open”

Devices

Ford

Toyota

OnStar

BMW

Mercedes Benz

1996

1997

1998

1999

2007

2008

2009

LTEStreaming

Video

700 MHz

Auction

ODI Announcement

LTE Selection

LTE Network

Trial

LTE Innovation

Center


Open services environment

Open Services Environment


New communications core

New Communications Core

Application

Servers

Application

Servers

Application

Servers

Application

Servers

Services

Verizon IMS

Internet

Coordination

Verizon IP Network

Access

Wired

Wireless

14


Elements of our network vision

Elements of Our Network Vision

Broadband Investment

IP-Centricity

Common Core

Content “In The Network”

Applications Focus

New Service Paradigm

Best Networks

15


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