Strategies to Drive Continued Growth Lowell McAdam – President & CEO, Verizon Wireless John Killian – EVP & CFO, Verizon January 15, 2010
“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, 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. 2
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 3
Streamlined Device Categorization Device Category Description Examples Motorola DROID – Android � 3G Rev A – Upload & Over 10,000 Apps download speeds Speech Recognition � High-level Operating Blackberry Storm 2– Blackberry 3G Smartphones Quad Band GSM / 3G UMTS Systems & Multi-tasking Visual Voice Mail � Fastest performance Palm Pre Plus – Web OS � Best features 3G Hot Spots LG Chocolate Touch � 3G – Faster connectivity Built-in FM radio V CAST Music with Rhapsody 3G Multimedia � HTML Browser Samsung Rogue VZ Navigator � Improved performance Removable Memory � Enhanced features LG enV3 Family Locator Music Player � Voice & Text focused Samsung Intensity 1.3 Megapixel Camera (1X connectivity) Bluetooth Simple Feature � Wireless Application Samsung Trance 1.3 Megapixel Camera Protocol (WAP) Browsing Phone Bluetooth � Push-to-Talk Phones Motorola Barrage Push to Talk Dashboard 4
Data Pricing Strategy Simplify pricing structure Data Plans for Phones $30 � Reduced data pricing tiers for phones from 4 to 3 � Mobile e-mail included as part of $10 and $30 data plans $10 � No change to mobile broadband $1.99 data plans Usage: per MB 25 MB Unlimited Drive higher data revenue Data Plans for Mobile Broadband* � Data plans now required on all 3G $60 phones � $30 (Unlimited) for 3G $40 smartphones � $10 minimum plan for 3G multimedia phones � Simple feature phones have the option of $1.99 per MB or the Usage: 250 MB 5 GB $10 or $30 plan * Mobile Broadband includes PC cards, Netbooks, MiFi 5
Post-Pay Pricing Strategy Simplify pricing structure Single Line $90 � Reduced from 40 plans to 6 single $80 line & 8 family share plans $60 � Two plan choices: “Talk” and Talk & Text $70 $60 “Talk & Text” $40 Talk � Retail prepaid mirrors single line plans +$5 Anytime minutes: 450 900 Unlimited Attract & Retain high value Family Share customers $150 $130 � Better value $120 $100 � Up-sell value of high-end plans Talk & Text $120 $100 � Strengthen customer loyalty $90 Talk $70 Anytime minutes: 700 1400 2000 Unlimited 6
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 7
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 8
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