Verizon Wireless 2009 Annual Report Download - page 6

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grew by 4.3 percent. We continued to receive high marks for quality and innovation from leading
industry analysts such as Forrester, the Yankee Group and Gartner, and had numerous signifi cant
customer wins such as the London Stock Exchange, Walmart and JetBlue.
Looking forward, long-term trends in the enterprise space are positive for companies like
Verizon that can help business customers use technology to work smarter and adapt to a virtual
world. Global Internet traffi c is increasing at an annual rate of more than 40 percent. Demand for
network-based computing services is on the rise, and global enterprises are increasingly using
collaborative technologies such as videoconferencing and social networking to connect their
mobile workforces and make their operations more effi cient and environmentally friendly.
We continue to expand our capacity to address these markets and be the electronic platform of
choice for commerce around the globe. Our IP network reaches 2,700 cities in 159 countries. We
operate 200 data centers around the world. We have turned up high-speed undersea cables to link
the world’s major markets and have deployed a highly secure mesh architecture to provide the
reliability and redundancy these networks require. We are upgrading our global backbone
networks with the fi rst-ever commercial deployment of 100 gigabit per second speeds – giving us a
big head start in handling the explosion of video traffi c in the years ahead. We entered the
burgeoning cloud computing market with a product called “computing-as-a-service” and enhanced
our portfolio of managed services to deliver the complete range of communication, information
technology, security and business solutions to business and government customers around the
world. We are also putting our decades of network management experience to work by developing
our vertical capabilities in high-growth segments like healthcare, smart grids, fi nancial services
and security.
To summarize, our 2009 results demonstrated our operational excellence and fi nancial
strength. Our challenge is to make our stock price refl ect our belief in Verizon’s value and relevance
in an increasingly network-centric world.
The global economy is experiencing one of the most wrenching periods in memory, and as of
this writing we are not sure when employment and growth will return to normal levels. But
throughout this diffi cult period, Verizon has stayed the course, choosing to focus on those things
we believe build sustainable, long-term value: maintaining a strong balance sheet and dividend;
transforming our networks and product sets around the markets of the future; strengthening our
brand and culture; and leveraging a depth of expertise in serving customers that few companies
can match.
While we’re disappointed with the performance of our stock in 2009, the strength of Verizon
remains rock solid.
1.9
0.9
2.9
FiOS TV
Customers
(millions)
07 08 09
1.5
2.5
3.4
FiOS Internet
Customers
(millions)
07 08 09
3-Year Total Return
Verizon S&P 500
4.0%
-16.0%
-80%
-40%
0%
40%
12/31/06 6/30/07 12/31/07 6/30/08 12/31/08 6/30/09 12/31/09
4