Summary
Verizon Communications Inc.'s 2008 10-K filing highlights a company focused on strategic growth and integration in a rapidly evolving telecommunications landscape. A key event for the period ending December 31, 2008, was the acquisition of Alltel Corporation, completed in January 2009, which positioned Verizon as the largest wireless service provider in the U.S. by customer count. This acquisition, despite requiring divestitures in overlapping markets, is expected to yield significant operational benefits through economies of scale, network rationalization, and cost savings. The company's business is structured around two primary segments: Domestic Wireless and Wireline. The Domestic Wireless segment, driven by Verizon Wireless, is investing heavily in network expansion and the deployment of next-generation 4G wireless broadband using LTE technology. The Wireline segment, comprising Verizon Telecom and Verizon Business, is focused on expanding its Fiber-to-the-Premises (FTTP) network (FiOS) for consumers and offering advanced IP and managed services to businesses. Competition remains intense across both segments, with a particular focus on network reliability, pricing, customer service, and product innovation as key differentiators. The company also acknowledges economic uncertainties and the need to adapt to technological advancements as significant risk factors.
Financial Highlights
51 data points| Revenue | $97.35B |
| Cost of Revenue | $38.62B |
| Gross Profit | $58.74B |
| SG&A Expenses | $41.52B |
| Operating Expenses | $94.74B |
| Operating Income | $2.61B |
| Interest Expense | $1.82B |
| Net Income | -$2.19B |
| EPS (Basic) | $-0.77 |
| EPS (Diluted) | $-0.77 |
| Shares Outstanding (Basic) | 2.85B |
| Shares Outstanding (Diluted) | 2.85B |
Key Highlights
- 1Completed the acquisition of Alltel Corporation in January 2009, significantly increasing its wireless customer base and solidifying its position as the largest U.S. wireless provider.
- 2Verizon Wireless is actively deploying 4G wireless broadband technology (LTE) to enhance network speed and capabilities.
- 3The Wireline segment is expanding its Fiber-to-the-Premises (FiOS) network, offering high-speed internet, video, and voice services to residential and small business customers.
- 4Verizon Business is focused on providing advanced IP and managed IT services to medium and large businesses and government entities globally.
- 5The company emphasizes network reliability, capacity, and coverage as critical competitive factors in the wireless market.
- 6Significant capital expenditures are being made in both wireless and wireline segments to support network upgrades, expansion, and the introduction of new services.
- 7Faces intense competition from national and regional wireless carriers, as well as cable companies, other telecommunications providers, and VoIP services in the wireline segment.