What are Verizon's primary business segments and how do they contribute to revenue?

Verizon Communications operates through two primary reportable segments: Wireline and Domestic Wireless. As of 2007, the Wireline segment accounted for approximately 54% of total revenues, offering a range of voice, internet access, broadband video, and data services. The Domestic Wireless segment, primarily through Verizon Wireless, provides wireless voice, data products, and equipment sales across the United States.

What are the key competitive challenges Verizon faces in its Wireline and Wireless businesses?

In the Wireline segment, Verizon faces significant competition from cable companies offering bundled services, wireless providers encroaching on landline services, and VoIP providers. In the Domestic Wireless segment, competition is primarily from AT&T, Sprint Nextel, and T-Mobile USA, with increasing pressure from new technologies and potential market consolidation. Key competitive factors across both segments include network capabilities, pricing, customer service, and product differentiation.

What is Verizon's strategy for network development and technological advancement?

Verizon is heavily investing in its Wireline network through the deployment of Fiber-to-the-Premises (FTTP) technology (FiOS) to deliver higher bandwidth services. For its Domestic Wireless segment, Verizon is expanding its 3G (EV-DO) network and plans to develop and deploy its fourth-generation mobile broadband network using LTE technology. The company is also transitioning its metro network infrastructure to IP, Ethernet, and MPLS technologies for greater efficiency and to support future multimedia services.

What are the main 'Strategic Services' offered by Verizon Business?

Strategic Services, which accounted for 24% of Verizon Business revenue in 2007, include IP and data services (like Private IP and Internet connectivity), managed IT and professional services (including security and application management), and advanced voice services. These services are designed to help enterprise customers transform their operations through outsourcing and advanced communication solutions.

VZ 10-K FY2007 Annual Report — Revenue, Net Income, EPS

Summary

Verizon Communications Inc.'s 2007 10-K report highlights a company operating in two primary segments: Wireline and Domestic Wireless. The Wireline segment, comprising Verizon Telecom and Verizon Business, focuses on providing a comprehensive suite of voice, data, and video services to residential, small business, and enterprise customers, leveraging its expanding FiOS fiber-optic network and a robust IP network acquired through the MCI merger. The Domestic Wireless segment, primarily Verizon Wireless (a 55% owned joint venture), remains a dominant force in the U.S. market, offering a wide range of voice and data services powered by its extensive CDMA network, with plans to evolve to LTE for future mobile broadband capabilities. Both segments operate in highly competitive landscapes, facing pressure from cable companies, other telecommunications providers, and emerging technologies like VoIP. Verizon is strategically investing in network infrastructure, particularly its fiber-to-the-premises (FTTP) deployment for the Wireline segment and ongoing network upgrades and spectrum acquisition for the Wireless segment, to meet increasing bandwidth demands and differentiate its offerings. The company is actively pursuing convergence strategies, such as bundling landline and wireless services, and expanding its "Strategic Services" within Verizon Business, focusing on IP and managed IT solutions.

Financial Highlights

29 data points

Beta

Revenue

$93.47B

0.6% Gross Margin

Net Income

$5.52B

0.1% Net Margin

EPS (Diluted)

$1.90

Cash & Equivalents

$1.15B

Free Cash Flow

$26.84B

Financial Statements

Beta

Revenue	$93.47B
Cost of Revenue	$37.55B
Gross Profit	$55.92B
SG&A Expenses	$25.97B
Operating Expenses	$77.89B
Operating Income	$15.58B
Interest Expense	$1.83B
Net Income	$5.52B
EPS (Basic)	$1.91
EPS (Diluted)	$1.90
Shares Outstanding (Basic)	2.90B
Shares Outstanding (Diluted)	2.90B

Key Highlights

1Verizon operates through two main segments: Wireline and Domestic Wireless, each facing significant competition.
2The Wireline segment is heavily investing in its Fiber-to-the-Premises (FiOS) network to deliver high-speed broadband, video, and voice services.
3The Domestic Wireless segment (Verizon Wireless) is a leading U.S. carrier, focusing on network reliability, coverage, and expanding 3G (EV-DO) capabilities, with future plans for LTE.
4Competition is intense across both segments from cable companies, other telcos, and new entrants offering services like VoIP.
5Verizon is strategically expanding its IP and managed IT services within its Verizon Business unit, leveraging the MCI acquisition.
6Significant capital expenditures are allocated to network development and upgrades for both wireline and wireless operations.
7The company is exploring product differentiation strategies, including bundled services and enhanced customer experience initiatives.

VERIZON COMMUNICATIONS INC Annual Report, Year Ended Dec 31, 2007

Summary

Financial Highlights

Key Highlights

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