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Verizon Company Paper

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Financial Outcomes for Verizon Communications

Financial Outcomes for Verizon Communications

Verizon communication is a global leader in delivering broadband and other wireless and wireline communications services to consumer, business, and government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, with 107.7 million total connections as of September 30, 2011. Verizon also provide converged communications, information and entertainment services over America’s most advanced fiber-optic network, and deliver integrated business solutions to customers around the world. A Dow 30 company, we employed a diverse workforce of approximately 195,400 as of September 30, 2011, and generated consolidated revenues of $82.4 billion for the nine months ended September 30, 2011(Verizon Communications, 2011). In 2011, chairman and CEO Ivan Seidenberg discussed in his annual report one financial initiative Verizon was working on in 2011. Mr. Seidenberg stated “We have a vision of the future based on expanding markets and mobility, broadband and video. We invest capital in network technologies that put us in the center of these growth markets,” (Seidenberg, 2010). In 2011, one initiative Verizon will be working on is to invest capital to expand in the mobile, broadband and video markets. Team A will compare and contrast the potential initiative Verizon has stated for 2011. Team A will also evaluate the information and make a determination of the most likely outcome. Verizon Communications is on the forefront of expansion when it comes to investing in new technologies. There is a strong commitment to invest capital to upgrade, maintain and expand their mobility, broadband and video infrastructure. “From 2006-2010 Verizon has invested more than $110 billion, more than any other telecom or cable company in America,” (Verizon, 2011) to ensure the public and stockholders that the commitment is real. Since Verizon Wireless was created, “they averaged $6 billion worth of investments a year to increase the capacity and coverage of their mobility networks,” (Verizon, 2011). The “wireline and broadband networks generate $8.4 billion in annual revenue as other telecommunications companies are using the Verizon networks to connect to customer’s homes and businesses and at the end of 2010, Verizon’s wireline network included 26 million voice connections,” (Verizon, 2011). The telecommunications industry has steadily rebound since 2009; this is because of the growth of not only the mobile and broadband structures, but also the increase of the video market. In Figure 1, the projected outcome is indicates a steady increase in the new 4G mobile broadband networks which will fuel continued wireless growth. “Business customers in particular will continue to use this technology to expand their capabilities beyond the desktop computer. Emerging markets such as China, India and Latin America are expected to see strong growth,” (Verizon, 2011). Based on the outlook by Verizon Communications, Inc. in their 2010 Annual Report, the investing that they do will increase the infrastructure in their telecommunication networks. Not only does the data show an increase in the national market, but there is an indication that investing globally will also increase the capabilities of Verizon’s telecommunications. The outcome shows that the investing potential is in Verizon’s favor.

Verizon Communications Company is the number two, telecom services Provider Company in the US. The company holds the top spot in wireless services ahead of AT&T Mobility Company. Verizon’s company core mobile business is overseen by Verizon Wireless who is known as
Cellco Partnership, the company operates with Vodafone as a joint venture; the company serves about 100 million customers. With about 30 million landline accounts the Verizon Communications' company wireline which provides telephone local lines, long-distance services, Internet access, and digital
TV services to customers, residential, corporate, and wholesale. The Verizon Business division has telecom, managed network, and IT services to provide for commercial and government clients.

References
Gitman, L.J., (2009). Principles of Managerial Finance (12th ed.). Boston, MA: Pearson Addison Wesley.
Seidenberg, I., (2010). 2010 Annual Report. Verizon Communications, Inc. Retrieved from http://www22.verizon.com/investor/ yahoo.com, (2011). Verizon, Industry Center-Telecom Services, Domestic. Retrieved from

http://biz.yahoo.com/ic/10/10197.html,

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Figure 1: Global Telecom Market

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