Presented on: February 28, 2008
To: Professor Geraldo Alvarado
For: Strategic Planning - MAN 452
By: David Ayala,
Francisco Gonzalez and
Verizon Communications, Inc. Executive Summary
Verizon Communications, Inc. is based in the state of New York. Verizon is currently considered the leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. The corporation was formed on June 30, 2000, with the merger of Bell Atlantic Corp and GTE Corp and began trading on the New York Stock Exchange on July 3, 2000 under the VZ symbol. Verizon Wireless’ motto is that they operate “America's most reliable wireless network”. They currently have nearly 66 million customers nationwide. Verizon's Wireline operations include Verizon Business, which delivers innovative and seamless business solutions to customers around the world, and Verizon Telecom, which brings customers the benefits of converged communications, information and entertainment services over the fiber-optic network. Verizon was added to the Dow Jones Industrial Average in April of 2004, 1 of only 30 companies. Verizon employs a diverse workforce of nearly 235,000. In 2006 they generated consolidated operating revenues of $93.5 billion. The company’s name: VERITAS, the Latin word connoting certainty and reliability, and horizon, signifying forward-looking and visionary. Verizon’s formation is traced back to the evolution of the telecommunication industry in the 20th century, beginning in large part with the Telecommunications Act on Feb. 8, 1996, which directed the industry into more market-based policies, bringing about a new competitive marketplace. (Verizon.com) Verizon ended the year 2005 with more that 48 million wireline customers and over 5 million broadband customers, which totals to over 1.5 billion phone calls and trillions of bits of data transfers. Verizon has a reliability factor of over 99.999 percent. The wireline network has approximately 9.3 million miles of local, inter-city and long-distance fiber-optic systems -- more than any U.S. local or long-distance company and more than enough to circle the Earth 390 times. (Investor.Verizon.com) Verizon Wireless has served more than 51 million customers in 49 States. Verizon's wireless network is 100 percent digital, with more than 160 switching facilities and 23,000 cell sites nationwide (Investor.Verizon.com). From June of 2000 though June of 2005 Verizon invested more that $70 billion in upgrades, maintenance and expansion of its technology. Verizon has been able to reduce its total debt from 2000 to 2002 by more than $20 billion, which in turn has helped the company to maintain a growth in the broadband and wireless areas of the company. Verizon was able to reduce it’s debt by selling non-strategic assets such as wireline access lines in Alabama, Missouri and Kentucky in 2002 and in Hawaii in 2005. Verizon had been able to offer major initiatives, such as offering broadband service to wireline and wireless customers in the United States. In late 2005, Verizon presented Fi0S TV, a new video service that is faster and better than the current broadband and broadcast programs for TV. By the end of 2005, Verizon had over 1 million households using FiOS TV service. Macro Analysis
The world of Telecommunications is evolving as fast as our technology can take it. The industry provides mainly telephone, TV distribution, and data transmission services, such as the internet. Companies can then provide these services through systems of wires, computers, transmitters, satellites and receivers. The operations of telecommunication service providers are to build, maintain, and operate networks to reach customers. They can be built by physically laying wires, building transmission towers, and interconnecting switching centers. They...