Verizon Wireless 2012 Annual Report Download - page 5

INNOVATIVE PRODUCTS AND SERVICES
Building on our cornerstone of network excellence, we are delivering a steady stream of
innovative products that are shifting our center of gravity toward growth markets. Meeting
customer demand for wireless data and smartphones, we launched dozens of 4G LTE phones
and Internet devices. We revolutionized wireless pricing with our new “Share Everything”
plans, which allow customers to share text, talk and data among up to ten dierent devices.
This is accelerating the adoption of these new devices and helped push smartphone
penetration to 58 percent by the end of 2012. Our commitment to quality has been
recognized by J. D. Power, which has rated Verizon Wireless number-one in customer service
in four consecutive surveys.
FiOS is proving to be another platform for growth, with its Internet and video services
accounting for 68 percent of consumer wireline revenues. We are leveraging the tremendous
capabilities of ber-optics with FiOS Quantum, which delivers speeds of up to 300 megabits
per second (Mbps) and was named by PCMag.com the fastest residential broadband service
in the country. With customers connecting an increasing array of computers, game players,
televisions and other devices in the home to their broadband connection, we believe
the virtually unlimited capacity of ber will give us a sustainable competitive edge in the
consumer market.
In our enterprise business, we are building or acquiring the platforms to ride on our network
that will enable us to deliver the services that global enterprises require. For example,
we acquired two companies in 2011, Terremark and CloudSwitch, that give us a core
competency in the fast-growing market for enterprise cloud and security services. Another
key acquisition is Hughes Telematics, Inc. (HTI), a leading provider of machine-to-machine,
eet and connected car services. As Internet connectivity is built into electronic equipment,
appliances, buildings and utility grids, new technology solutions are emerging in such elds
as healthcare, energy, transportation and e-commerce. Verizon will use the HTI machine-to-
machine platform to be a big player in these emerging growth markets.
All of these initiatives are transforming our growth prole. Consumer wireline revenues grew
by 3.2 percent for the year—the best in a decade—fueled by double-digit growth in FiOS.
Wireless had 5.9 million retail connection net additions—with fourth-quarter net adds in
retail postpaid the highest in our history—for an industry leading total of 98.2 million retail
connections, and saw total operating revenues increase by 8.1 percent. Despite continuing
economic challenges in global markets, revenues from strategic business services grew by
6.3 percent.
TRANSFORMING THE BUSINESS THROUGH STRATEGIC PARTNERSHIPS
With technology permeating every corner of business and society, no single company can
deliver everything customers want and need without having great partners. At Verizon,
partnerships are a fundamental piece of our growth strategy, helping us branch into new
markets, stimulate innovation and broaden our geographic reach.
In 2012, we took several major steps to create strategic advantages through collaboration.
$6.6
$7.6 $8.1
  
VERIZON WIRELINE
STRATEGIC SERVICES
REVENUE
(BILLIONS)
4.1
4.8
5.4
  
FiOS INTERNET
SUBSCRIBERS
(MILLIONS)
3.5
4.2
4.7
  
FiOS VIDEO
SUBSCRIBERS
(MILLIONS)
VERIZON COMMUNICATIONS INC. 2012 ANNUAL REPORT
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