About Digex, Incorporated
Verizon Communications is a provider of communications, information and entertainment products and services to consumers, businesses and government entities. The company serves approximately 95 million retail connections, 6 million broadband connections and 4 million Fios video connections. Verizon's wireline unit provides local telephone, long-distance, internet access, corporate networking and digital TV services. In addition, Verizon offers a wide range of telecom, managed network, security, and IT services to commercial and government clients in more than 150 countries. The company also sells devices such as smartphones, tablets, laptop computers and netbooks, and other wireless-enabled connected devices, such as smartwatches and other wearables. Verizon has expanded its video and advertising capabilities with the acquisitions of AOL and Yahoo assets. Formerly known as Bell Atlantic Corporation (Bell Atlantic), The company was incorporated in 1983 under the laws of the State of Delaware.
The company's consolidated asset-backed debt bankruptcy remote legal entities (each, an ABS Entity or collectively, the ABS Entities) issue the debt or otherwise a party to the transaction documentation in connection with the asset-backed debt transactions. Under the terms of the asset-backed debt, Cellco Partnership (Cellco) and certain other affiliates of Verizon (collectively, the Originators) transfer device payment plan agreement receivables to one of the ABS Entities, which in turn transfers such receivables to another ABS Entity that issues the debt. Verizon entities retain the equity interests in the ABS Entities, which represent the rights to all funds not needed to make required payments on the asset-backed debt and other related payments and expenses.
Verizon has two reportable segments. These are Verizon Consumer Group (approximately 70% of the sales) and Verizon Business Group (about 25% of the sales) Small portions of the sales come from corporate and other. The consumer segment provides consumer-focused wireless and wireline communications services and products. The wireless services are provided across one of the most extensive wireless networks in the United States (U.S.) under the Verizon brand and through wholesale and other arrangements. The customers can obtain our wireless services on a postpaid or prepaid basis. The Consumer segment's operating revenues for the year ended December 31, 2019, totaled $91.1 billion.
The business segment provides wireless and wireline communications services and products, video and data services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products, including solutions that support fleet tracking management, compliance management, field service management, asset tracking and other types of mobile resource management. The Consumer segment's operating revenues for the year ended December 31, 2019, totaled $91.1 billion.
Corporate and other includes the results of the media business, Verizon Media, and other businesses, investments in unconsolidated businesses, insurance captives, unallocated corporate expenses, certain pension and other employee benefit-related costs and interest and financing expenses.
Verizon, based in New York City, has operations throughout the US. It also has representation in countries around the world.
Sales and Marketing
Verizon sells its prepaid and postpaid wireless phone services through its website, its stores, omnichannel and national retailers. It also has a dedicated telemarketing sales force. The average retail customer account pays about $134 a month.
The company is a major advertiser. Verizon Media provides consumers with owned and operated and third-party search properties as well as mail, news, finance, sports and entertainment offerings, and provides other businesses and partners access to consumers through digital advertising, content delivery, video streaming platforms. and point-of-sale media promotions.
Selling, general and administrative expenses increased $499 million, or 6.5%, during 2019 compared to 2018, due to increases in advertising expenses and sales commission expense. Advertising expense cost for $3.0 billion.
Verizon's revenue has risen in the past years after the company hit a sales peak of about $131 billion in 2015 before dropping in 2016. In 2019, the revenue was almost the same in 2016.
Sales were $131.9 billion in 2019, about a one percent increase from 2018, driven by higher consumer revenue from higher-value accounts and overall account growth. Business revenue had a slight decline of $91.0 million since 2018. Verizon's net income increased by almost 25% in 2019 to $19.2 billion.
In 2019, Verizon had about $1 million more in cash and equivalents, $3.9 billion, compared to the previous year. Operations generated $35.7 billion in cash, while investing and financing activities used $17.6 billion and $18.2 billion, respectively.
The company continues to lead in 4G LTE performance while building momentum for the 5G network. The strategy lays the foundation for the future through investments in Intelligent Edge Network that enable efficiencies throughout the core infrastructure and deliver flexibility to meet customer requirements.
Verizon will continue to offer business and government customers more robust IP products and services, and advance IoT strategies by leveraging business models that monetize usage on our networks at the connectivity, platform and solution layers.
The Company's overall investment strategy is to achieve a mix of assets that allows the company to meet projected benefit payments while taking into consideration risk and return. In an effort to reduce the risk of portfolio strategy and better align assets with liabilities, The company adopted a liability-driven pension strategy that seeks to better match cash flows from investments with projected benefit payments.
In 2020, Verizon collaborated with Riot Games regarding the 5G network for the League of Legends Championship. The three-year partnership will permit Verizon to cooperate with Riot Games and the LCS to reconstruct the overall gaming experience for programmers, gamers and fans. Despite the pandemic, Verizon exhibits its devotion to gamers and fans by providing weekly music and gaming streaming through Pay It Forward LIVE.
Mergers and Acquisitions
In early 2019 Verizon closed its acquisition of ProtectWise, a provider of cloud-delivered Network Detection and Response. This acquisition expands Verizon's security offerings.
In May 2019, Verizon acquired BlueJeans Network. The products of BlueJeans fit Verizon's mobile business solutions particularly to the new development of the 5G product roadmap.
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