About MCI Communications Corporation
Verizon Communications is the #1 wireless phone service in the US (ahead of rival AT&T), serving more than 118 million connections. Verizon's wireline unit provides local telephone, long-distance, internet access, corporate networking and digital TV services to consumers, carriers, business, and government customers. 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 device such as phones, tablets, and wearables. Verizon has expanded its video and advertising capabilities with the acquisitions of AOL and Yahoo assets.
Verizon Communications' Wireless segment accounts for about 70% of revenue. Verizon operates one of the most extensive wireless networks in the US and the largest 4G LTE network (available to more than 98% of the US population).
The wireline segment, which accounts for about a quarter of revenue, provides voice, data, and video communications products, as well as broadband video and data, corporate networking services, data center and cloud services, security and managed network services, and local and long-distance voice services. The segment also includes Verizon's Fios service, which offers high-speed internet and TV. The company reports more than 6 million Fios internet and about 5 million Fios video subscribers.
The corporate and other segment, which includes Oath media businesses, telematics, and other businesses, supplies about 5% of revenue.
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 own stores, 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, with a coordinated program of TV, print, radio, outdoor signage, internet, and point-of-sale media promotions. Those Verizon ads, commercials, and other promotional vehicles cost the company about $2.6 billion a year.
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.
Sales were just under $131 billion in 2018, about a 4% increase from 2017, driven by higher wireless revenue from higher value accounts and overall account growth. Equipment revenue also rose due to sales of higher priced handset and greater sales of wearables. Higher wireless and equipment sales offset a drop in wireline revenue.
Verizon's net income fell by about half, dropping to $15.5 billion in 2018 compared to $30.1 billion in 2017 (when the company had a $16 billion tax benefit).
In 2018, Verizon had about $1 billion more in cash and equivalents, $3.9 billion, compared to the previous year. Operations generated $34.3 billion in cash, while investing and financing activities used $17.9 billion and $15 billion, respectively.
Verizon carries significant debt, about $103 billion at the end of 2018, which could reduce the amount of money available for working capital, capital expenditures, and acquisitions and hinder the ability to obtain financing.
When its rivals slash prices on wireless service, Verizon Communications touts the coverage, speed, and reliability of its network. Maybe it costs a bit more, Verizon tells customers, but the network is worth it. Verizon is investing to expand and strengthen the network to develop new streams of revenue. The company now offers unlimited voice, data, and video plans, which has reduced average revenue per user to about $134 a month.
Verizon has large capital expenditures, about $17 billion, that go to improve its network, adding more fiber optic cable to improve 4G service and get ready for higher-speed 5G service.
The company had made strides in rolling out the early wave of 5G service, including becoming the first company to complete a 5G data session on a smartphone, as well at the first to commercially deploy 5G with its 5G Home product.
Verizon has put cost-cutting measures in place including a voluntary separation program for some US-based management employees. The program was to reduce headcount by some 10,400. Verizon reorganized its segment reporting structure into consumer, business, and Verizon Media Group. The realignment, which went into effect in the 2019 second quarter, was to help the company better focus on customers.
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 2018 Verizon acquired Moment, a New York-based design and strategy firm, to develop customer experience materials for in-store, online, mobile, and live customer service by phone or chat.
Also in 2018 Verizon closed the acquired Movildata Internacional, a Spanish provider of commercial fleet management technologies.
In 2017 Verizon acquired the operating business of Yahoo! Inc. Verizon has combined these assets with its existing AOL business to create a new subsidiary, Oath, a diverse house of more than 50 media and technology brands that engages more than a billion people around the world.
Verizon in 2017 bought Straight Path Communications for more than $3 billion, gaining a trove of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications. The spectrum could give Verizon a boost in developing 5G technology.
22001 LOUDOUN COUNTY PKWY
Ashburn, VA 20147-6105
Phone: 1 (703) 886-5600
Employer Type: Privately Owned
Senior Vice President: Christopher Formant
Employees (This Location): 600
Employees (All Locations): 39,000
Los Angeles, CA
North Royalton, OH
San Antonio, TX