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VERIZON COMMUNICATIONS INC. | 2010 ANNUAL REPORT
fastest, highest-quality broadband network in the country. FiOS gives us an unparalleled platform
for delivering the flood of high-definition video content that makes up a rapidly growing portion
of the Internet. We also continued to globalize our company by enhancing our high-speed Internet
backbone, which serves six continents and close to 160 countries worldwide. Furthermore, we’re
adding to our extensive network of data centers to position ourselves for the emerging market for
“cloud” services, in which content, customer data, security, IT services and more will be stored in
the network and made available on-demand to customers wherever they are.
Verizon Wireless ended the year with 94.1 million customers and a growing number of
connections from smart grids, ATM machines, smart cars and other machine-to-machine devices
that reflect the increasingly pervasive reach of wireless into our daily lives. Data revenues grew at
25.6 percent in 2010, fueled by the incredible success of the Droid franchise of smartphones, called
by Ad Age one of the “hottest brands” of 2010. We have now expanded our portfolio of devices to
include the Apple iPad and iPhone 4 and expect to see a steady stream of new smartphones,
tablets and other devices from multiple manufacturers in 2011. We broke ground on an expansion
of our Technology Innovation Center in Waltham, Massachusetts, and we are working with more
than 60 product developers and some 6,000 applications developers and entrepreneurs to create a
new generation of wireless broadband products and applications. Of course, the most meaningful
accomplishment for us is being number one with customers, so we were particularly gratified to
see that Consumer Reports gave us the highest customer satisfaction rating of any major carrier for
the second year in a row.
Revenues from FiOS broadband and video now constitute more than half of our consumer
telecom business. At year-end we had 4.1 million FiOS Internet customers and 3.5 million video
subscribers, and FiOS revenues grew almost 32 percent on the year. Our all-fiber network contin-
ues to garner top ratings from J.D. Power, PCMag.com and other industry experts. We’ve started
to point the way to the next generation of video services with 3-D broadcasts of major sporting
events; a growing library of video-on-demand content; a new service called FlexView that lets sub-
scribers watch FiOS video content on their TV, PC or smartphone; and a “connected home” solution
coming in 2011 for managing energy, security and entertainment needs from remote locations.
$10.6
$15.6
$19.6
Wireless
Data Revenue
(billions)
08 09 10
72.1
89.2 94.1
Wireless Total
Customers
(millions)
08 09 10
33
.%
.%
// // // // // // //
-%
%
%
2010 Total Return
Verizon S&P 500