creating a network for the future

At Verizon, we have built our business on the belief that world-class networks and next-generation technology will create value for our shareowners and our customers. We are investing in the infrastructure that provides the mobility and bandwidth our customers need – now and in the future – to carry converged voice, high-speed data and video.

Wireless is a good example of our ability to evolve from one technology platform to another – becoming the industry leader in technology, quality and customer satisfaction along the way. In converting our nationwide network to digital, we enabled explosive growth in subscribers and traffic.

By further upgrading that digital network to accommodate data, we ushered in the era of wireless data. Our mobile subscribers can check e-mail and download files using our NationalAccess service, which provides nationwide wireless connections to the Internet from laptop computers and handheld devices.

For our mobile customers who require even more bandwidth, we are upgrading our network to provide high-speed, wireless broadband service. We expanded our BroadbandAccess service to cover 75 million Americans last year, and we will double that number in 2005. As a result, business travelers can now experience fast, office-quality connectivity when they’re on the move.

We are following the same model in our wireline business by transforming our network to meet the requirements of the high-speed broadband era. DSL broadband service is now available to a majority of homes in our service area, and we have begun the next phase of the broadband transformation by rolling out high-capacity fiber technology directly to our customers’ homes and businesses. Our fiber-optic Internet service, FiOS, was deployed in 10 states in 2004, and we will escalate our deployment rate in 2005. FiOS delivers Internet surfing speeds that far exceed today’s DSL and cable offerings, while the fiber infrastructure reduces our operating costs. In addition, the advanced fiber technology allows new revenue streams from high-capacity applications such as video-on-demand and HDTV.

To better serve our large-business customers, Verizon invested in a major network expansion called Enterprise Advance. With our national reach and a portfolio of advanced data products, we offer customers greater speeds, more bandwidth and increased flexibility to manage their voice and data traffic on a single network.

DSL Lines in Service (millions)
Consumer Package Penetration (Customers with 2+ wireline services)
Wireless Subscribers (millions)
Superpages.com Online Searches (millions)
fiber family enjoys more bandwidth

The members of the Friz family have become heavy Internet users. Max and Jody are working professionals with three school-aged children. During a typical week, the family checks e-mail, does homework, pays bills online and downloads files from the office using three home computers connected to the Internet. On weekends they frequently surf web sites, watch movie trailers, send family videos and photographs, and access online games.

As new Internet applications have become available, their computer use has increased, which created the need for additional bandwidth. But unlike other broadband technologies, Verizon’s new FiOS service gives the Friz family access to the Internet using the speed of light – a fiber-optic connection directly into their home. With FiOS they experience virtually no wait time for downloading or uploading large files to and from their computers.

“The FiOS Internet service addresses many of our personal, professional and entertainment needs,” says Max, who has been disappointed with other broadband technologies. “There is no doubt our family will remain loyal FiOS customers based on the low cost and high performance of this service, and we look forward to buying additional FiOS services when they become available.”

wireless mobility accelerates realty sales

Most real estate agents spend their days going back and forth from their office to handle time-consuming administrative tasks. But Realtor® David Therrien and his sales team have developed a unique mobile office system using Verizon Wireless’ high-speed BroadbandAccess. This system enables Therrien and his clients to share critical information quickly and conveniently. The mobile office can be set up in a client’s home to send and receive time-sensitive material, such as home listings, photos, real-time videos, contracts and other important legal documents.

Therrien is able to take his office wherever he goes and is no longer limited to the geographic area surrounding his realty office – he once drafted a timely offer and e-mailed it to his client while sitting in the stands at a baseball game. His mobile office includes a laptop computer with wireless broadband connectivity to the Internet and the server in his realty office. In addition, he travels with a scanner, color printer, VCR, digital and video cameras, and fax machine.

For home buyers and sellers, Therrien’s wireless mobile office provides in-home convenience, remote access to important documents, flexibility, faster responses and reduced travel time. The time-consuming process of buying and selling a home is now a little faster, thanks to Therrien’s innovations and Verizon Wireless’ BroadbandAccess.

Features | Selected Financial Data and MD&A | Financials | Proxy | Investor Relations Website

* This is an interactive electronic version of Verizon’s 2004 Annual Report to Shareholders, and it is intended to be complete and accurate. The contents of this version are qualified in their entirety by reference to the printed version. A reproduction of the printed version is available in PDF format on this website