Verizon Communications (VZ)

Background

Our Domestic Wireless segment, Cellco Partnership doing business as Verizon Wireless (Verizon Wireless), is a joint venture formed in April 2000 by the combination of the U.S. wireless operations and interests of Verizon and Vodafone Group Plc (Vodafone). Verizon owns a controlling 55% interest in Verizon Wireless, and Vodafone owns the remaining 45%. In 2009, Domestic Wireless revenues were $62,131 million, representing approximately 58% of Verizon’s aggregate revenues. Domestic Wireless is not dependent on any single customer.

Background

The Wireline segment provides customers with communications products and services that include voice, Internet access, broadband video and data, next generation IP network services, network access, long distance and other services. We provide these products and services to consumers in the U.S., as well as to carriers, businesses and government customers both in the U.S. and in 150 other countries around the world.

In 2009, we changed the manner in which the Wireline segment reports Operating revenues to align our financial presentation to the continued evolution of the wireline business. Accordingly, there are four revenue-producing lines of business within the Wireline segment: Mass Markets, Global Enterprise, Global Wholesale and Other. In 2009, Wireline revenues were $46,080 million, representing approximately 43% of Verizon’s aggregate revenues. Our Wireline segment is not dependent on any single customer.

Background

Our Domestic Wireless segment, Cellco Partnership doing business as Verizon Wireless (Verizon Wireless), is a joint venture formed in April 2000 by the combination of the U.S. wireless operations and interests of Verizon and Vodafone Group Plc (Vodafone). Verizon owns a controlling 55% interest in Verizon Wireless and Vodafone owns the remaining 45%.

On January 9, 2009, Verizon Wireless completed its purchase of Alltel from Atlantis Holdings LLC and paid approximately $5.9 billion for the equity of Alltel. The Alltel debt associated with the transaction, net of cash, was approximately $22.2 billion. See – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments” in the 2008 Annual Report to Shareowners. Unless otherwise indicated, the following discussion of Verizon Wireless’s business does not take into account the closing of the Alltel acquisition.

Background

FACE="Times New Roman" SIZE="2">Our Domestic Wireless segment, Cellco Partnership doing business as Verizon Wireless (Verizon Wireless), is a joint venture formed in April 2000 by the combination of the U.S. wireless operations and interests of
Verizon and Vodafone Group Plc (Vodafone). Verizon owns a controlling 55% interest in Verizon Wireless and Vodafone owns the remaining 45%.

SIZE="2">On January 9, 2009, Verizon Wireless completed its purchase of Alltel from Atlantis Holdings LLC and paid approximately $5.9 billion for the equity of Alltel. The Alltel debt associated with the transaction, net of cash, was
approximately $22.2 billion. See – “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Recent Developments” in the 2008 Annual Report to Shareowners. Unless otherwise indicated, the
following discussion of Verizon Wireless’s business does not take into account the closing of the Alltel acquisition.

Background

Our Wireline segment includes two strategic units, Verizon Telecom and Verizon Business. In 2008, Wireline revenues were $48,214 million, representing approximately 49.5% of Verizon’s aggregate revenues. Our Wireline segment is not dependent on any single customer.

In the discussion that follows, 2008 revenue amounts for each of the Wireline units are presented before intrasegment eliminations of $2,824 million.

Background

FACE="Times New Roman" SIZE="2">Our Wireline segment includes two strategic units, Verizon Telecom and Verizon Business. In 2008, Wireline revenues were $48,214 million, representing approximately 49.5% of Verizon’s aggregate revenues. Our
Wireline segment is not dependent on any single customer.

In the discussion that follows, 2008
revenue amounts for each of the Wireline units are presented before intrasegment eliminations of $2,824 million.

Background

Our Domestic Wireless segment, primarily includes Cellco Partnership doing business as Verizon Wireless (Verizon Wireless), which is a joint venture formed in April 2000 by the combination of the United States wireless operations and interests of Verizon and Vodafone Group Plc (Vodafone). Verizon owns a controlling 55% interest in Verizon Wireless and Vodafone owns the remaining 45%.

Background