Verizon Wireless 2011 Annual Report Download - page 5

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VERIZON COMMUNICATIONS INC. 2011 ANNUAL REPORT
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2011 Results
Our financial performance in 2011 testifies
to Verizon’s fundamental strength. Revenues
totaled $110.9 billion, up 6.2 percent on an
adjusted basis, reflecting strong performance
in wireless, video and enterprise strategic
services. Revenues in the fourth quarter grew
by 7.7 percent year over year, the highest
since we formed Verizon 10 years ago. Cash
flow from operating activities totaled $29.8
billion for the year, enabling us to sustain
the capital investment necessary to press
our advantage of having the best networks
in the industry and raise our dividend by 2.6
percent, the fifth consecutive annual increase,
bringing our annual dividend to $2.00 a share.
All in all, Verizon’s total return to shareowners
for 2011 was 18.2 percent, as compared with
8.4 percent for the Dow Jones Industrial
Average and 2.1 percent for the S&P 500.
The big news in wireless for 2011 was the
rapid deployment of our fourth-generation
wireless network, based on 4G LTE
technology. Just over a year after its launch
in December 2010, this industry-leading
network reached 200 million people in 195
markets across the U.S. and now supports
a rapidly developing ecosystem of devices
and applications that take advantage of its
superior coverage and speed. We’re fueling
this revolution with our two new Innovation
Centers — one focused on devices and
the other on applications — where we
work with developers and entrepreneurs
to tap the incredible potential of 4G LTE to
enhance people’s lives and address new
markets. (See pages 8–9 for more detail.)
Verizon Wireless ended the year with a total
of 107.8 million connections, including a
growing number of machine-to-machine
devices and mobile “hot spots” that reflect
the emerging “Internet of Things,” in which
connectivity is embedded throughout the
physical world. We added the iPhone to our
robust product line-up, which also includes
a growing number of 4G LTE devices that
operate on the Android platform. All of
this is driving smartphone penetration
and fueling 21 percent annual growth in
wireless data revenue. We are very proud
of receiving the number-one ranking for
customer satisfaction from a major consumer
publication again this year and were
excited to see that PCWorld put 4G LTE at
the top of its “100 Best Products of 2011.”
We continue to transform our consumer
wireline business around video and
broadband. Our all-fiber FiOS network
now passes 16.5 million homes —
about 60 percent of our wireline territory —
and provides a high-quality platform for
delivering broadband services, streaming
video and other high-bandwidth services.
FiOS now accounts for more than 60 percent
of our consumer wireline revenues and helps
make up for the decline in revenues from
traditional services. As of the fourth quarter,
we had 4.8 million FiOS Internet subscribers
and 4.2 million FiOS Video subscribers.
Our service continues to receive high ratings
from J. D. Power and PCMag.com, and we are
partnering with such industry leaders as
Microsoft and Redbox to develop next-
generation video services that will leverage
this tremendous platform.
$60.3 $63.4
$70.2
WIRELESS REVENUE
(BILLIONS)
09 10 11
96.5 102.2 107.8
WIRELESS TOTAL
CONNECTIONS
(MILLIONS)
09 10 11
$15.6
$19.6
$23.6
WIRELESS DATA
REVENUE
(BILLIONS)
09 10 11