20100526

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20100526

  1. 1. Barclays Capital Lowell McAdam President & CEO Verizon Wireless May 26, 2010
  2. 2. “Safe Harbor” Statement 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 Annual Report on Form 10-K (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. 2 2
  3. 3. 2010 Focus Areas Wireless • Balance growth and profitability • Grow market share • Expand data penetration & revenue • Commercialize LTE Focused on creating shareholder value 3
  4. 4. WIRELESS Revenue & Profitability Service Revenue ($B) Retail Postpaid ARPU $13.8 $52.29 $52.61 $13.1 5.9% Y/Y Growth Retail 1.14% 1.07% Postpaid Churn 1Q '09 1Q '10 1Q '09 1Q '10 Total Data Revenue ($B) Service EBITDA Margin $4.6 26.4% 46.0% 46.0% $3.6 Y/Y Growth Total $16.71 Data ARPU $14.16 1Q '09 1Q '10 1Q '09 1Q '10 Sustaining strong profitability and cash generation 4
  5. 5. DROID Reshapes Smartphone Landscape Iconic Devices DROID by Motorola  DROID Eris by HTC DROID Incredible by  + HTC Popular Apps/OS Integrated Google  Apps + Best Network 5x More 3G Coverage Drives smartphone adoption, network usage, loyalty 5
  6. 6. The Incredible Smartphone “The Droid Incredible by HTC is an absolutely “The Droid Incredible by HTC is an absolutely amazing device. The most powerful phone on the amazing device. The most powerful phone on the U.S. market today, it reflects and enhances the state U.S. market today, it reflects and enhances the state of the art smartphone, with the full backing and of the art smartphone, with the full backing and support of the Verizon Wireless network. ““ support of the Verizon Wireless network. ~PC Mag.com Sascha Segan ~PC Mag.com Sascha Segan “The Incredible is probably the best smartphone you “The Incredible is probably the best smartphone you can currently buy…and the Verizon network is just can currently buy…and the Verizon network is just as strong and pervasive as the ads claim.” as strong and pervasive as the ads claim.” ~ Dallas Morning News ~ Dallas Morning News “It's hands-down Verizon's best smartphone, and one “It's hands-down Verizon's best smartphone, and one of the best and fastest Android devices on the market of the best and fastest Android devices on the market right now, so much so that we deem it worthy of our right now, so much so that we deem it worthy of our Editors' Choice award.” Editors' Choice award.” ~CNET Bonnie Cha ~CNET Bonnie Cha EDITORS’ CHOICE: CNET, Laptop, PC Mag.com, EDITORS’ CHOICE: CNET, Laptop, PC Mag.com, Engadget. Engadget. Growth engine for DROID platform 6
  7. 7. Best Spectrum: 700 MHz License Map Average Throughput Mbps 8 7 6 5 The only carrier with contiguous 4G spectrum 4 3 2 1 0 5x5 10 x 10 Competitor VzW Competitive advantage 7
  8. 8. 700MHz Delivers Superior Building Penetration Advantages Each frequency has a different rate of energy decay, with higher frequencies decaying faster Broadcast power same across frequencies 2500 MHZ 2100 MHZ 1900 MHZ 800 MHZ 700 MHZ BRS AWS PCS Cellular LTE Relative Distance 1x 1.18x 1.3x 2.9x 3.5x 8
  9. 9. Capital Efficiency Advantages • LTE technology Cost • Global scale & ecosystem per MB • Lower frequencies enhance network performance • Increased in-building penetration • Depth of existing cell sites allows efficient deployment EV-DO LTE of LTE Cost-effective growth 9 9
  10. 10. Speed, Low-latency Advantages Throughput (Average, Downlink Mbps) 8 7 6 5 4 3 2 Latency (msec) 1 500 0 450 2G (1XRTT) 3G (EvDO) 4G (LTE) 400 350 300 250 200 150 100 50 0 2G (1XRTT) 3G (EvDO) 4G (LTE) Significant performance enhancements 10
  11. 11. Rapid National Rollout YE 2010: 100 M POPs YE 2013: 285+ M POPs 2012: 200 M POPs • 2010: PC cards, dongles • 1H 2011: 3-5 devices First and best LTE network 11
  12. 12. Driving the Ecosystem Service Delivery Platform Wireless chip Hosted Open Development technology applications Innovation Center 4G Ecosystem Joint Innovation Lab Verizon Developer Community Global Speed, latency = new “connections” possibilities 12
  13. 13. LTE: Putting It All Together • Competitive • 700 MHz Footprint + Advantage • Propagation Advantages • Cost-effective + • Speed, Low Latency Growth + • Capital Efficiency • Fuels Ecosystem Focused on creating shareholder value 13
  14. 14. Barclays Capital Lowell McAdam President & CEO Verizon Wireless May 26, 2010

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