Raymond James 32 nd Annual Institutional Investors Conference Tony Melone Executive Vice President & Chief Technology Officer March 9, 2011
“Safe Harbor” Statement 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, 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, the effect of material changes in available technology; any disruption of our key suppliers’ provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural disasters, terrorist attacks, breached of network or information technology security or existing or future litigation and any 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 increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of 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; and the inability to implement our business strategies. 2
Key Priorities • Accelerate revenue growth • Expand margins and improve profitability • Ensure network performance and reliability • Effectively deploy new technologies • Increase investment returns Capitalize on strategic network investments 3
Market Trends • Significant market demand for increasing network speeds • Broadband access and households online growing • Video evolving to anytime, anywhere & on any device • Businesses shift towards secure IP & managed services • Significant growth in cloud computing services Market trends favoring Verizon's integrated asset portfolio 4
Market Trends - Video Daily video viewing Of consumers would like to 5+ 65 for the average view videos or downloaded American across content from the Internet Hours Percent devices in 2010 on their television The increase in consumer 84 52 Growth rate of mobile consumption of online video consumption Percent video between 2008 & 2009 Percent Of Internet traffic will Number of videos 2 91 be video by 2014, 56% watched per day Billion Percent will be streaming video at YouTube Digital media and growth of connected devices driving market 5
Market Trends - Global IP and the Cloud $120B 5yr Growth Market $150 Gartner Forecast IDC Forecast $100 2011-2020 2011+ “ Everything -as-a-service” CAGR 2011-2015 19% CAGR $50 35% 2000s Mobile Internet Computing $0 2011 2013 2015 2020 1990s Desktop Internet Computing • 10x number of users with each cycle • 44x data growth by 2020 1980s Client / Server Computing • Access speed demand growing to 100 Gpbs 1970s Mini Computing by 2015 1960s Mainframe Computing The Cloud – A complementary new growth opportunity 6
Network Overview • Application Store Global IP • Open Development • M2M Platform • Business Apps Access • Hosted Mobile Apps • Vertical Solutions • Communication Apps • FlexView • Enable Mobile Apps • Video • SMB Services • Verizon.net Services • Digital Voice Cloud Services • Cloud Computing • Business Platforms Superior global assets, strong strategic position 7
Global Capabilities • $16B enterprise revenue in 2010 Data Centers • Offices in 75 countries • 200 Data Centers • Over 3,000 Professional Service consultants Professional Services • IP Network in 2,700 cities, 159 countries • ~180K Customers • #1 in Security Services Security • Premier Global Network Service Provider • Strengthening Vodafone relationship Global Network Global market position… a powerful enabler 8
Data Center Integration with IP Network Verizon National Data Center Cloud Services P-OTP P-OTP Verizon P-OTP Public Network Private Network P-OTP Wireless Verizon Regional Data Verizon Regional Data Center Center Private Network Verizon 100Gb 100Gb Wireless Private Network E E 100Gb E Verizon 100G ULH 100Gb E Backbone 100Gb Verizon Regional Data E Verizon Regional Data P-OTP 100Gb Center Center E Public Network P-OTP 100GbE 100Gb Public Network Verizon P-OTP E Wireless P-OTP Private Network Public Network P-OTP P-OTP Verizon Wireless Verizon National Data Center Cloud Broadband Services Home Wireless/ LTE Customers
Verizon Network Cloud Delivery Node Delivery Node Smart IMS Network Video Services Security Services Cloud Computing Delivery Node IP/MPLS IPv6 100+ Gbps Ultra Long Haul Optical Control Plane Optical Switching Mesh Networking Delivery Node Delivery Node Partner Competitor Cloud Port Services Delivery over Managed Networks & Internet New Revenue, faster interactivity, efficient use of network 10
Enterprise Cloud Opportunity A Verizon Company • Global portfolio of advanced • Leading global provider of • Leading cloud services voice, data, IP, IT and managed IT infrastructure provider security solutions services • Leader in managed security • Leader in Cloud • Innovative technology services Infrastructure as a Service platform delivering cloud, • One of the largest managed and Web Hosting security and managed hosting companies hosting services • Leader in Managed Security • Global data center footprint Services • 13 data centers in the US, • Comprehensive services Europe and Latin America • 16 Premium Data Centers portfolio and 5 Smart Data Centers in • Agile innovator in secure IT US, Europe and Asia and cloud services • Unified enterprise IT platform Terremark accelerates the cloud opportunity for Verizon 11
FiOS • Delivering on commitment to pass 18M premises • 15.6M premises passed at end of 2010 • 60% of footprint covered by FiOS with goal of 70% coverage • 32% FiOS Internet data and 28% FiOS TV penetration • Significant upside potential FiOS investment continues to enable enhanced products 12
FiOS Evolution • Leading Broadband Platform – 150/35 Mbps 2010, 1 Gbps future – NGPON Trials – Enabling business services • Cost Efficiencies – 1x64 Design – Longer-reach optics • FiOS Enhancements – Full-HD 3D – Channel expansion – Consumer electronics integration • Blu-ray • BB enabled TVs • Game consoles • Tablets, smartphones • IP set-top boxes Fiber solutions enhance capabilities and efficiencies 13
Wireless 3G • Reliability • Consistency • Coverage • Utility Motorola Droid 2 Samsung Galaxy iPad Apple iPhone 4 MiFi Global Largest, most reliable wireless voice and 3G data network in U.S. 14
Wireless 4G LTE • Capabilities – Speeds up to 10 times faster – Cuts latency in half – Superior in-building penetration 2013: 290M • Enhanced value proposition POPs – Quality of service HTC 2012: Thunderbolt 200M – Enhanced product offerings POPs – Billing capabilities Motorola XOOM M2M Samsung Galaxy Technology leadership, innovation and data driving growth 15
Wireless Advanced Devices Smartphone / Data Device Growth USB Modems Mobile Hotspots Netbooks Tablets Smartphones Smartphone Penetration (Retail postpaid base) • Doubling data capacity to support increased usage each 50%+ year Postpaid 26% Data • Improved throughput 15% ARPU 10% $18.83 $15.80 • Consistent investment in cell $12.89 sites, spectrum and backhaul 2008 2009 2010 2011 Est. Well positioned to support future growth 16
Wireless Spectrum 2000 2010 Licenses Covering Licenses Covering 87% of U.S. Population 100% of U.S. Population Average Nationwide Depth: 29 MHz Average Nationwide Depth: 88 MHz Strong spectrum depth and breadth 17
700 MHZ Coverage Comparison Each frequency has a different rate of energy decay, with higher frequencies decaying faster 2500 2100 1900 800 MHZ 700 MHZ MHZ MHZ MHZ Cellular VZW LTE BRS AWS PCS Relative Distance 1x 1.18x 1.3x 2.9x 3.5x 700 MHz delivers superior coverage 18
LTE Enhancements Quality of Service (QoS) Service Management Bandwidth • Public Safety, VoIP, Enterprise, Video • Best Effort Latency • Machine to Machine Meet customer requirements Video Video Optimization Optimization • YouTube, Hulu, Facebook Efficiency • Video telephony • Premier content Quality of experience Capacity Growth Strategy Additional Spectrum Smaller cells More spectrum Picocells Microcells Technology enhancements 19
Recommend
More recommend
