Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Raymond James 32nd Annual Institutional Investors Conference (March 2011)
21 slides from Verizon Communications's conference presentation, Mar 9, 2011
Slide 1: Raymond James 32nd Annual Institutional Investors Conference
Raymond James 32nd Annual Institutional Investors Conference Tony Melone Executive Vice President & Chief Technology Officer March 9, 2011
Slide 2: "Safe Harbor" Statement
“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 Pri
Slide 3: Key Priorities
Key Priorities • Accelerate revenue growth • Expand margins and improve profitability • Ensure network performance and reliability • Effectively deploy new technologies • Increase investment returns Capitalize on strategic network investments 3
Slide 4: Market Trends
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 favori
Slide 5: Market Trends - Video
Market Trends - Video Daily video viewing Of consumers would like to 5+ for the average American across 65 view videos or downloaded content from the Internet Hours Percent devices in 2010 on their television The increase in consumer 84 consumption of online 52 Growth rate of mobile video consumptio
Slide 6: Market Trends - Global IP and the Cloud
Market Trends - Global IP and the Cloud $120B 5yr Growth Market $150 Gartner Forecast IDC Forecast $100 2011-2020 CAGR 2011+ “Everything-as-a-service” 2011-2015 CAGR 19% $50 35% 2000s Mobile Internet Computing $0 2011 2013 2015 2020 1990s Desktop Internet Computing • 10x number of users with each cy
Slide 7: Network Overview
Network Overview • Application Store • Open Development Global IP • M2M Platform • Hosted Mobile Apps • Business Apps Access • Vertical Solutions • Communication Apps • FlexView • Enable Mobile Apps • Video • SMB Services • Verizon.net Services • Digital Voice Cloud Services • Cloud Computing • Busi
Slide 8: Global Capabilities
Global Capabilities • $16B enterprise revenue in 2010 Data Centers • Offices in 75 countries • 200 Data Centers • Over 3,000 Professional Service consultants Professional Services • IP Network in 2,700 cities, 159 countries • ~180K Customers Security • #1 in Security Services • Premier Global Networ
Slide 9: Data Center Integration with IP Network
Data Center Integration with IP Network Verizon National Data Center Cloud Services P-OTP P-OTP Verizon P-OTP Private Network Public Network Wireless P-OTP Verizon Regional Data Verizon Regional Data Center Center Private Network Verizon 100Gb 100Gb Wireless E E Private Network 100Gb E Verizon 100G
Slide 10: Verizon Network Cloud
Verizon Network Cloud Delivery Node Delivery Node Smart IMS Network Video Services Security Services Cloud Computing Delivery Node IP/MPLS IPv6 100+ Gbps Ultra Long Haul Optical Control Plane Optical Switching Mesh Networking Delivery Node Delivery Node Partner Competitor Cloud Port Services Deliver
Slide 11: Enterprise Cloud Opportunity
Enterprise Cloud Opportunity A Verizon Company • Global portfolio of advanced • Leading global provider of • Leading cloud services voice, data, IP, IT and managed IT infrastructure provider security solutions services • Leader in managed security • Leader in Cloud • Innovative technology services I
Slide 12: FiOS
FiOS • 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 FiOS investment continues to enable enhanced products 12
Slide 13: FiOS Evolution
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
Slide 14: Wireless 3G
Wireless 3G • Reliability • Consistency • Coverage • Utility Motorola Droid 2 Samsung Galaxy iPad MiFi Apple iPhone 4 Global Largest, most reliable wireless voice and 3G data network in U.S. 14
Slide 15: Wireless 4G LTE
Wireless 4G LTE • Capabilities – Speeds up to 10 times faster – Cuts latency in half – Superior in-building 2013: penetration 290M POPs • Enhanced value proposition HTC Thunderbolt 2012: – Quality of service 200M POPs – Enhanced product offerings – Billing capabilities Motorola XOOM M2M Samsung Gala
Slide 16: Wireless Advanced Devices
Wireless Advanced Devices Smartphone / Data Device Growth USB Modems Mobile Hotspots Netbooks Tablets Smartphones Smartphone Penetration (Retail postpaid base) • Doubling data capacity to 50%+ support increased usage each Postpaid year 26% Data 10% 15% ARPU • Improved throughput $15.80 $18.83 $12.89
Slide 17: Wireless Spectrum
Wireless Spectrum 2000 2010 Licenses Covering Licenses Covering 87% of U.S. Population 100% of U.S. Population Average Nationwide Depth: 29 MHz Average Nationwide Depth: 88 MHz Strong spectrum depth and breadth 17
Slide 18: 700 MHz Coverage Comparison
700 MHZ Coverage Comparison Each frequency has a different rate of energy decay, with higher frequencies decaying faster 2500 2100 1900 800 MHZ 700 MHZ MHZ MHZ MHZ Cellular VZW LTE BRS AWS PCS Relative Distance 1x 1.18x 1.3x 2.9x 3.5x 700 MHz delivers superior coverage 18
Slide 19: LTE Enhancements
LTE Enhancements Service Management Quality of Service (QoS) Bandwidth • Public Safety, VoIP, Enterprise, Video Latency • Best Effort • Machine to Machine Meet customer requirements Video Optimization Video Optimization • YouTube, Hulu, Facebook Efficiency • Video telephony Quality of experience • P
Slide 20: Collaboration & Partnering
Collaboration & Partnering LTE Innovation Center (Waltham, MA) Application Innovation Center 4GVF (San Francisco, CA) (Basking Ridge, NJ) Differentiated Devices + Applications = Services
Slide 21: Network Summary
Network Summary • Application Store • Open Development Global IP • M2M Platform • Hosted Mobile Apps • Business Apps Access • Vertical Solutions • Communication Apps • FlexView • Enable Mobile Apps • Video • SMB Services • Verizon.net Services • Digital Voice Cloud Services • Cloud Computing • Busin