Verizon Wireless 2010 Annual Report Download - page 6

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$51.84 $50.89 $51.56
Wireless Retail
Service ARPU
08 09 10
We are starting to see our business revenues stabilize somewhat as the economy begins to
recover, and as we’re seeing in our other major businesses our enterprise revenue base is shifting
heavily to higher growth services. Strategic services now account for 44 percent of our enterprise
revenues. Revenues from strategic services grew 6.3 percent on the year and accelerated to 7.5
percent in the fourth quarter. Our global Internet backbone network and extensive switching and
data center architecture give us a great platform for marketing managed services, security and
cloud-based services to multinational corporations. We took steps to further strengthen our
position in cloud services in early 2011 by entering into an agreement to acquire Terremark, a
global provider of managed information-technology solutions. With consistently high marks from
industry analysts such as Gartner, Forrester and Yankee Group and a growing portfolio of
capabilities, we secured a number of significant customer wins in 2010. And we are working with
partners to develop our capabilities in high-growth segments like health care, smart grids, financial
services and security.
I am pleased to report that our stock rebounded strongly in 2010. Total return for the year was
23.1 percent, as compared with 15.1 percent for the S&P and 14.1 percent for the Dow Jones
Industrial Average. The primary drivers of this improved performance were sustained growth in
wireless and stabilizing margins in wireline. This improvement in wireline profitability is evidence
that our strategic growth businesses are beginning to grow faster than our legacy voice business is
shrinking. Also contributing to our 2010 stock performance were our dividend, strong cash flows
and steady execution – all of which, we believe, will stand Verizon in good stead as the
fundamentals of the economy improve in 2011.
As pleased as we are with our 2010 performance, we are confident that we can raise our game
in 2011. Our outstanding assets give us an advantageous strategic position in the fast-growing
markets for mobile broadband, high-speed Internet and advanced business services. Going
forward, our challenge is to continue to transform our growth profile around these global, high-
tech opportunities while consistently creating shareholder value at the same time. To do that, our
leadership team is focused on executing our profitable growth model (see diagram on page 2) and
leveraging our assets to deliver superior value to customers and investors.
2.8
1.8
3.5
FiOS TV
Customers
(millions)
08 09 10
2.4
3.3
4.1
FiOS Internet
Customers
(millions)
08 09 10
Lowell McAdam was named president and chief operating officer in 2010, with the expectation that he will
become chief executive officer when Ivan Seidenberg retires in 2011.
44