Verizon Wireless 2008 Annual Report Download - page 5

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VERIZON COMMUNICATIONS INC. 2008 ANNUAL REPORT
Our฀philosophy฀is฀that฀by฀investing฀in฀the฀best฀networks,฀we฀can฀offer฀the฀best฀and฀most฀
innovative฀services฀and฀enhance฀our฀competitiveness฀across฀the฀board.฀That฀proved฀true฀in฀2008.฀
We฀saw฀solid฀revenue฀growth฀in฀all฀our฀strategic฀businesses฀in฀2008:฀12.4฀percent฀in฀wireless,฀42฀
percent฀in฀broadband฀and฀video,฀and฀16฀percent฀in฀strategic฀business฀services.฀We฀added฀more฀
than฀6฀million฀new฀wireless฀customers,฀956,000฀FiOS฀Internet฀customers฀and฀975,000฀customers฀
for฀FiOS฀TV.฀Rising฀monthly฀average-revenue-per-user฀for฀wireless฀and฀broadband฀shows฀that฀our฀
customers฀are฀nding฀these฀products฀more฀and฀more฀vital฀and฀useful฀in฀their฀daily฀lives.฀And฀in฀
the฀business฀market,฀nearly฀70฀percent฀of฀our฀customers฀have฀or฀are฀in฀the฀process฀of฀transitioning฀
to฀private฀IP฀networks,฀making฀this฀service฀the฀fastest฀growing฀in฀this฀business.
In฀wireless,฀we฀launched฀36฀new฀devices฀in฀2008.฀More฀than฀one-third฀of฀them฀were฀smart฀
phones,฀which฀reects฀the฀evolution฀of฀wireless฀from฀a฀voice-only฀product฀to฀a฀full-service฀
platform฀that฀allows฀customers฀to฀surf฀the฀Internet,฀check฀e-mail,฀watch฀video,฀exchange฀pictures฀
and฀more.฀This฀growing฀array฀of฀data฀services฀now฀generates฀nearly฀27฀percent฀of฀wireless฀service฀
revenues.฀Going฀forward,฀we฀believe฀that฀wireless฀growth฀will฀increasingly฀be฀driven฀by฀mobile฀
connections฀built฀into฀a฀wide฀variety฀of฀products฀such฀as฀cameras,฀energy฀systems,฀vehicles,฀
buildings฀and฀appliances.฀To฀accommodate฀these฀new฀services,฀we฀are฀preparing฀to฀launch฀our฀
fourth-generation฀wireless฀network,฀which฀we฀believe฀will฀make฀Verizon’s฀wireless฀network฀the฀
on-ramp฀for฀innovation฀in฀the฀next฀phase฀of฀this฀dynamic฀industry.฀
With฀FiOS,฀we฀are฀redening฀the฀consumer฀telecom฀business฀as฀a฀broadband฀and฀video฀
business.฀FiOS฀delivers฀ultra-fast฀Internet฀speeds฀and฀more฀high-denition฀video฀channels฀than฀
any฀cable฀provider฀in฀the฀market฀today.฀These฀features฀have฀helped฀us฀achieve฀25฀percent฀market฀
share฀for฀FiOS฀Internet฀and฀21฀percent฀for฀FiOS฀TV฀in฀four฀short฀years.฀We฀are฀well-positioned฀for฀
the฀next฀wave฀of฀innovation฀in฀telecom,฀which฀will฀be฀driven฀by฀high-denition฀teleconferencing,฀
three-dimensional฀video฀and฀other฀advanced฀services฀requiring฀the฀unique฀speed฀and฀capacity฀
advantages฀of฀our฀all-ber฀network.฀
In฀the฀global฀enterprise฀market,฀customers฀are฀looking฀for฀communications฀companies฀that฀
can฀provide฀them฀with฀a฀full฀range฀of฀strategic฀capabilities฀–฀from฀security,฀professional฀services,฀
information฀technology฀solutions,฀and฀private฀IP฀services฀to฀global฀networking.฀Verizon฀is฀one฀of฀
$4.5
$7.4
$10.7
WIRELESS
DATA REVENUE
(billions)
06 07 08
$. $. $.
WIRELESS RETAIL
SERVICE ARPU
06 07 08
We’re transforming our networks to provide for the bandwidth-intensive
applications our customers will need in the future. Our all-fiber network
will deliver all the advanced HD and Internet services that are being
developed. You’ll walk through virtual stores, attend classes held thousands
of miles away, or consult with your doctor – all without leaving home.
Wireless smart phones will provide advanced Internet, video and computer
applications to keep customers informed and entertained on the go. And
our global network will support a new wave of productivity-enhancing
applications like secure global transactions, electronic supply chains and
manufacturing processes, and virtual-reality videoconferencing.
Verizon is doing much more than simply connecting individuals. We’re
developing innovative network services that create communities where
friends and neighbors, buyers and sellers, or teachers and students around
the world can come together in unique and exciting ways. We’re enabling
these valuable social networks by providing our customers the tools to
share experiences with each other whenever and wherever they happen.
We’re also helping address social issues that are critical to the well-being
of our communities by building advanced broadband networks that are
creating the jobs of the future, making communities more competitive and
driving innovation and growth.
Broadband Experience
From
Providing
Service
To
Offering
Compelling
Experiences
To
Creating
Communities
From
Connecting
Users