Raymond James 32 nd Annual Institutional Investors Conference Tony - - PowerPoint PPT Presentation
Raymond James 32 nd Annual Institutional Investors Conference Tony - - PowerPoint PPT Presentation
Raymond James 32 nd Annual Institutional Investors Conference Tony Melone Executive Vice President & Chief Technology Officer March 9, 2011 Safe Harbor Statement NOTE: This presentation contains statements about expected future
“Safe Harbor” Statement
NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in labor matters, including workforce levels and labor negotiations, and any resulting financial and/or
- perational impact, the effect of material changes in available technology; any disruption of
- ur key suppliers’ provisioning of products or services; significant increases in benefit plan
costs or lower investment returns on plan assets; the impact of natural disasters, terrorist attacks, breached of network or information technology security or existing or future litigation and any financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings
- rganizations or adverse conditions in the credit markets impacting the cost, including interest
rates, and/or availability of financing; any changes in the regulatory environments in which we
- perate, including any increase in restrictions on our ability to operate our networks; the
timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact
- n earnings; our ability to complete acquisitions and dispositions; and the inability to
implement our business strategies.
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Capitalize on strategic network investments
Key Priorities
- Accelerate revenue growth
- Expand margins and improve profitability
- Ensure network performance and reliability
- Effectively deploy new technologies
- Increase investment returns
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Market Trends
- Significant market demand for increasing network speeds
- Broadband access and households online growing
- Video evolving to anytime, anywhere & on any device
- Businesses shift towards secure IP & managed services
- Significant growth in cloud computing services
Market trends favoring Verizon's integrated asset portfolio
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Market Trends - Video
Digital media and growth of connected devices driving market
Number of videos watched per day at YouTube
2
Billion
Growth rate of mobile video consumption
52
Percent
Daily video viewing for the average American across devices in 2010
5+
Hours
Of consumers would like to view videos or downloaded content from the Internet
- n their television
65
Percent
Of Internet traffic will be video by 2014, 56% will be streaming video
91
Percent
The increase in consumer consumption of online video between 2008 & 2009
84
Percent
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- 10x number of users with each cycle
- 44x data growth by 2020
- Access speed demand
growing to 100 Gpbs by 2015
Market Trends - Global IP and the Cloud
The Cloud – A complementary new growth opportunity
1970s Mini Computing 1980s Client / Server Computing 1960s Mainframe Computing 1990s Desktop Internet Computing 2000s Mobile Internet Computing 2011+ “Everything-as-a-service”
$120B 5yr Growth Market Gartner Forecast IDC Forecast $0 $50 $100 $150 2011 2013 2015 2020
2011-2020
CAGR 19%
2011-2015
CAGR 35%
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Network Overview
Superior global assets, strong strategic position
- Business Apps Access
- Communication Apps
- Enable Mobile Apps
- SMB Services
- Digital Voice
Global IP
- Application Store
- Open Development
- M2M Platform
- Hosted Mobile Apps
- Vertical Solutions
- FlexView
- Video
- Verizon.net Services
Cloud Services
- Cloud Computing
- Business Platforms
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Global Capabilities
Global market position… a powerful enabler
- $16B enterprise revenue
in 2010
- Offices in 75 countries
- 200 Data Centers
- Over 3,000 Professional
Service consultants
- IP Network in 2,700 cities,
159 countries
- ~180K Customers
- #1 in Security Services
- Premier Global Network
Service Provider
- Strengthening Vodafone
relationship
Security Global Network Professional Services Data Centers
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Private Network Private Network Public Network Private Network
Verizon 100G ULH Backbone
Public Network Public Network 100Gb E 100Gb E 100Gb E 100Gb E 100GbE 100Gb E 100Gb E 100Gb E Private Network Public Network
Verizon Wireless Verizon Wireless Verizon Wireless
P-OTP P-OTP P-OTP P-OTP P-OTP P-OTP
Wireless/ LTE Customers
Verizon Regional Data Center Verizon Regional Data Center Verizon Regional Data Center
Verizon National Data Center
Cloud Services
Verizon National Data Center
Cloud Services Verizon Wireless
P-OTP P-OTP
Broadband Home
P-OTP P-OTP
Verizon Regional Data Center
Data Center Integration with IP Network
Verizon Network Cloud
Partner Port Delivery over Managed Networks & Internet Smart Network
IMS Video Services Security Services Cloud Computing
Delivery Node Competitor Cloud Services
Delivery Node Delivery Node Delivery Node Delivery Node
New Revenue, faster interactivity, efficient use of network
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IP/MPLS IPv6 100+ Gbps Ultra Long Haul Optical Control Plane Optical Switching Mesh Networking
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Enterprise Cloud Opportunity
A Verizon Company
Terremark accelerates the cloud opportunity for Verizon
- Global portfolio of advanced
voice, data, IP, IT and security solutions
- Leader in Cloud
Infrastructure as a Service and Web Hosting
- Leader in Managed Security
Services
- 16 Premium Data Centers
and 5 Smart Data Centers in US, Europe and Asia
- Leading global provider of
managed IT infrastructure services
- Innovative technology
platform delivering cloud, security and managed hosting services
- 13 data centers in the US,
Europe and Latin America
- Leading cloud services
provider
- Leader in managed security
services
- One of the largest managed
hosting companies
- Global data center footprint
- Comprehensive services
portfolio
- Agile innovator in secure IT
and cloud services
- Unified enterprise IT
platform
FiOS
FiOS investment continues to enable enhanced products
- Delivering on commitment to
pass 18M premises
- 15.6M premises passed at
end of 2010
- 60% of footprint covered by
FiOS with goal of 70% coverage
- 32% FiOS Internet data and
28% FiOS TV penetration
- Significant upside potential
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FiOS Evolution
- Leading Broadband Platform
– 150/35 Mbps 2010, 1 Gbps future – NGPON Trials – Enabling business services
- Cost Efficiencies
– 1x64 Design – Longer-reach optics
- FiOS Enhancements
– Full-HD 3D – Channel expansion – Consumer electronics integration
- Blu-ray
- BB enabled TVs
- Game consoles
- Tablets, smartphones
- IP set-top boxes
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Fiber solutions enhance capabilities and efficiencies
Wireless 3G
Largest, most reliable wireless voice and 3G data network in U.S.
- Reliability
- Consistency
- Coverage
- Utility
Motorola Droid 2 Global Apple iPhone 4 Samsung Galaxy iPad MiFi
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Motorola XOOM
Wireless 4G LTE
Technology leadership, innovation and data driving growth
- Capabilities
– Speeds up to 10 times faster – Cuts latency in half – Superior in-building penetration
- Enhanced value proposition
– Quality of service – Enhanced product offerings – Billing capabilities
2013: 290M POPs 2012: 200M POPs
M2M Samsung Galaxy HTC Thunderbolt
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Wireless Advanced Devices
Well positioned to support future growth
Smartphone / Data Device Growth
Smartphone Penetration (Retail postpaid base)
Postpaid Data ARPU 10% 15% 26% $15.80 $18.83 2008 2009 2010 2011 Est.
- Doubling data capacity to
support increased usage each year
- Improved throughput
- Consistent investment in cell
sites, spectrum and backhaul
50%+
USB Modems Mobile Hotspots Netbooks Tablets Smartphones
$12.89
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Licenses Covering 87% of U.S. Population Average Nationwide Depth: 29 MHz
2000
Wireless Spectrum
Strong spectrum depth and breadth
Licenses Covering 100% of U.S. Population Average Nationwide Depth: 88 MHz
2010
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700 MHZ Coverage Comparison
Each frequency has a different rate of energy decay, with higher frequencies decaying faster Relative Distance 1x
2500 MHZ BRS
1.3x
1900 MHZ PCS
2.9x
800 MHZ Cellular
3.5x
700 MHZ VZW LTE
1.18x
2100 MHZ AWS
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700 MHz delivers superior coverage
LTE Enhancements
Microcells
Capacity
- Public Safety, VoIP, Enterprise, Video
- Best Effort
- Machine to Machine
- YouTube, Hulu, Facebook
- Video telephony
- Premier content
Quality of Service (QoS) Video
Additional Spectrum
Service Management
Bandwidth Latency Meet customer requirements
Video Optimization
Optimization Efficiency Quality of experience
Growth Strategy
Smaller cells More spectrum Technology enhancements Picocells
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Collaboration & Partnering
LTE Innovation Center
(Waltham, MA)
Application Innovation Center
(San Francisco, CA)
4GVF
(Basking Ridge, NJ)
+ =
Devices Applications Differentiated Services
Network Summary
Leveraging our integrated asset portfolio for success
- Business Apps Access
- Communication Apps
- Enable Mobile Apps
- SMB Services
- Digital Voice
Global IP
- Application Store
- Open Development
- M2M Platform
- Hosted Mobile Apps
- Vertical Solutions
- FlexView
- Video
- Verizon.net Services
Cloud Services
- Cloud Computing
- Business Platforms
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