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Dick Lynch

Dick Lynch. EVP and CTO Verizon Communications. October 2009. “Safe Harbor” Statement.

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Dick Lynch

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  1. Dick Lynch EVP and CTOVerizon Communications October 2009

  2. “Safe Harbor” Statement 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 operational impact, in the markets served by us or by companies in which we have substantial investments; the effect of material changes in available technology; any disruption of our suppliers’ provisioning of critical products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural or man-made disasters or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations 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 operate, including any loss of or inability to renew wireless licenses, and the final results of federal and state regulatory proceedings and judicial review of those results; the timing, scope and financial impact of our deployment of fiber-to-the-premises 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 on earnings; our ability to complete acquisitions and dispositions; our ability to successfully integrate Alltel Corporation into Verizon Wireless’s business and achieve anticipated benefits of the acquisition; and the inability to implement our business strategies. Reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures included in this presentation can be found on our website at www.verizon.com/investor. 2

  3. Verizon Background • Largest U.S. Carrier • Broadest U.S.Voice & Data Footprint • Unmatched Global Capabilities • Phone • Broadband • HDTV • Global IP Network • Managed Services • Serving 98%of Fortune 500 2008 REVENUE US$49.3B US$29.9B US$21.1B 3

  4. Superior Broadband Portfolio 4

  5. 3G 2G Wireless Data Trends Terabytes 4,000 3,000 2,000 1,000 0 2004 2008 5

  6. LTE Expectations Dick’s Projection LTE 3G Terabytes 4,000,000 3,000,000 2,000,000 1,000,000 0 2010 2014

  7. Video On Demand Content Library Video Streams 2006 2008 2010 2006 2008 2010 Production VOD User Generated VOD Total Content Streams 7

  8. Broadband Networks IP/MPLS LTE FiOS IP/Ethernet IMS 8

  9. FiOS Multi-room DVR 500 All-digital Channels 120 HD Channels 15,000 VOD Titles per Month “Widgets” 50/20 Mbps 14.5M Premises Passed HDTV More Channels More Speed More Services Data Video 3.3M 2.7M 2.2M 1.6M 29% 25% 24% 20% 3Q08 3Q09 3Q08 3Q09

  10. LTE Dominant Global Standard Global Roaming Performance Throughput and Capacity Low Latency Scale Economics Lower Cost per Bit New Service Opportunities More Speed More Capacity More Performance

  11. New Service Paradigm PC Devices Processor Video Card Memory Hard Drive Software & Applications Apps Operating System Antivirus Security Customer/Tech Support Customer/Tech Support Or …

  12. Path of Openness Duke Energy ODIDevelopers Conference 60+ “Open” Devices Ford Toyota OnStar BMW Mercedes Benz 1996 1997 1998 1999 2007 2008 2009 LTEStreaming Video 700 MHz Auction ODI Announcement LTE Selection LTE Network Trial LTE Innovation Center

  13. Open Services Environment

  14. New Communications Core Application Servers Application Servers Application Servers Application Servers Services Verizon IMS Internet Coordination Verizon IP Network Access Wired Wireless 14

  15. Elements of Our Network Vision Broadband Investment IP-Centricity Common Core Content “In The Network” Applications Focus New Service Paradigm Best Networks 15

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