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Verizon Communications Inc. - Communications Services
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Category Directory
212-395-2121
1095
Avenue of the Americas
New
York, NY10036
www.verizon.com
Sales
$68
billion
Business Description
Verizon Communications Inc. is one of the world’s leading providers of
communications services. Verizon companies are the largest providers of
wireline and wireless communications in the United States, with 140.3
million access line equivalents and 37.5 million wireless customers. Verizon
is the third largest long distance carrier for U.S. consumers, with 16.6
million long distance lines, and the company is also the largest directory
publisher in the world, as measured by directory titles and circulation.
Verizon’s international presence extends primarily to the Americas, as well
as investments in Europe. Stressing diversity and commitment to the
communities in which we operate, Verizon has a highly diverse workforce of
over 200,000 employees.
Verizon was formerly known as Bell Atlantic Corporation, which was
incorporated in 1983 under the laws of the State of Delaware. We began doing
business as Verizon Communications on June 30, 2000, when Bell Atlantic
Corporation merged with GTE Corporation.
We have four reportable segments, which we operate and manage as strategic
business units and organize by products and services. Our segments and their
principal activities consist of the following:
Domestic Telecom
Domestic wireline communications services, principally representing our
telephone operations that provide local telephone services in 29 states and
the District of Columbia. These services include voice and data transport,
enhanced and custom calling features, network access, directory assistance,
private lines and public telephones. This segment also provides long
distance services, customer premises equipment distribution, data solutions
and systems integration, billing and collections, Internet access services
and inventory management services.
Domestic Wireless
Domestic wireless products and services include wireless voice and data
services and equipment sales across the United States.
Information Services
Domestic and international publishing businesses, including print SuperPages®
and electronic SuperPages.com™ directories, as well as website creation and
other electronic commerce services. This segment has operations principally
in North America and Latin America.
International
International wireline and wireless communications operations and
investments primarily in the Americas, as well as investments in Europe.
Domestic Telecom
Our Domestic Telecom segment, principally representing our wireline
telephone operations, provided approximately 60% of 2003 total operating
revenues. Our telephone operations presently serve a territory consisting of
140.3 million access line equivalents in 29 states and the District of
Columbia. This segment also provides long distance and other
telecommunication services. Domestic Telecom provides mainly two types of
telecommunications services:
• Exchange telecommunications service is the transmission of
telecommunications among customers located within a local calling area
within a local access and transport area (LATA). Examples of exchange
telecommunications services include switched local residential and business
services, local private line voice and data services and Centrex services.
We also provide toll services within a LATA (intraLATA long distance) and
toll services outside a LATA (interLATA long distance).
• Exchange access service links a customer’s premises and the transmission
facilities of other telecommunications carriers, generally interLATA
carriers. Examples of exchange access services include switched access and
special access services.
We have organized our Domestic Telecom segment into four marketing units
operating across our telephone subsidiaries. The units focus on specific
markets. We are not dependent on any single customer. Our telephone
operations remain responsible within their respective service areas for the
provision of telephone services, financial performance and regulatory
matters.
The Enterprise unit markets communications and information technology and
services to large businesses and to departments, agencies and offices of the
executive, judicial and legislative branches of the federal, state and local
governments. These services include voice switching/processing services
(e.g., dedicated private lines, custom Centrex, call management and voice
messaging), end-user networking (e.g., credit and debit card transactions
and personal computer-based conferencing, including data and video),
internetworking (establishing links between the geographically disparate
networks of two or more companies or within the same company), network
optimization (disaster avoidance and 911 service) and other communications
services. The Enterprise unit also provides data transmission, Internet and
network integration services, interLATA long distance services, network
monitoring services and telecommunications equipment sales to medium and
large businesses. Revenues in 2003 were approximately $6.6 billion,
representing approximately 17% of Domestic Telecom’s aggregate revenues.
The Retail unit markets communications and information services to
residential customers and to small and medium-sized businesses within our
territory, including our long distance services and Internet access
services. Our long distance subsidiary provides national and international
long distance services in all 50 states to residential and business
customers, including calling cards, 800/888 services and operator services.
This unit also provides operator and pay telephone services and sells
customer premises equipment. Revenues in 2003 were approximately $23.0
billion, representing approximately 58% of Domestic Telecom’s aggregate
revenues. These revenues were derived primarily from the provision of
telephone services to residential users.
The Wholesale unit markets our network operations, which principally
includes our carrier access and telecom industry services. Revenues in 2003
were approximately $8.6 billion, representing approximately 22% of Domestic
Telecom’s aggregate revenues. Approximately 68% of total wholesale revenues
were derived from interexchange carriers (switched and special access). The
remaining revenues come from our telecom industry services, principally from
other local exchange carriers which resell network connections to their own
customers.
The Network unit is principally responsible for the construction and
maintenance of our telephone operations’ networks. This unit is also
responsible for the procurement and management of inventory and supplies for
our subsidiaries and sells materials and logistic services to third-party
carriers. Revenues in 2003 (after eliminations and combined with all other
Domestic Telecom revenues) were approximately $1.4 billion, representing
approximately 3% of Domestic Telecom’s aggregate revenues.
Domestic Wireless
Our Domestic Wireless segment provides wireless voice and data services and
equipment sales in the United States, principally through Verizon Wireless.
Verizon Wireless is the leading wireless communications provider in the
United States in terms of the number of subscribers, revenues and operating
income. Verizon Wireless has the largest customer base of any U.S. wireless
provider, with 37.5 million wireless subscribers as of December 31, 2003,
and provides wireless voice and data services across the United States.
Approximately 262 million people reside in areas of the U.S. in which we
have FCC licenses to offer our services and approximately 236 million people
reside in areas covered by our service. This coverage includes approximately
90% of the population in our licensed areas and 49 of the 50 and 97 of the
100 most populated U.S. metropolitan areas.
Wireless licenses are granted by the FCC for an initial 10-year term and are
renewable for successive 10-year terms. To date, all Verizon Wireless and
predecessor company wireless licenses have been successfully renewed.
Background
The wireless joint venture was formed in April 2000 in connection with the
combination of the U.S. wireless operations and interests of Verizon and
Vodafone Group Plc (Vodafone). The wireless joint venture operates as
Verizon Wireless. Verizon owns a controlling 55% interest in Verizon
Wireless and Vodafone owns the remaining 45%.
Information Services
Information Services is a world leader in print and online directory
publishing and a content provider for electronic communications products and
services. A leader in linking buyers and sellers, we produce Verizon
SuperPages® print yellow and white pages directories, as well as the
Internet’s preeminent online directory, SuperPages.com™. We pursue national
and international growth by offering customers comprehensive advertising
solutions that include bundled print and electronic commerce offerings.
Information Services provides sales, publishing and other related services
for approximately 1,870 directory titles in 48 states, the District of
Columbia, 6 countries and a Commonwealth outside the United States. Total
circulation is approximately 112 million copies in the U.S. and 25 million
copies internationally.
In 2003, we completed the sale of our directory businesses in Europe, which
consisted of publishing operations in Austria, the Czech Republic,
Gibraltar, Hungary, Poland and Slovakia.
In 2001, we acquired the advertising services business of TELUS Corporation
(TELUS) in Canada. This acquisition advances our growth strategy by
expanding our existing Canadian footprint with the creation of a new
company, Dominion Information Services, Inc.
Our directory publishing business competes within the yellow pages industry
with six major U.S.-based directory publishers (SBC Communications Inc.,
BellSouth Corporation, R.H. Donnelley, Yellow Book USA, Dex Media, Inc. and
Trans Western Publishing) and encounters competition in nearly all our
domestic print markets. We also compete against alternative advertising
media, including radio, network and cable television, newspapers, magazines,
Internet, direct mail and others for a share of the total U.S. advertising
media market. Our SuperPages.com™ competitors include national directory and
local Internet search engines including Yahoo and Google.
International
Our International segment includes international wireline and wireless
communications operations and investments primarily in the Americas and
Europe. Our consolidated international investments as of December 31, 2003
included Verizon in the Dominican Republic, Telecomunicaciones de Puerto
Rico, Inc. (TELPRI) in Puerto Rico and Micronesian Telecommunications
Corporation in the Northern Mariana Islands. As of December 31, 2003, our
International segment managed approximately 9 million access lines and
provided wireless services to approximately 30 million customers.
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