Verizon Communications Inc. (Verizon), through its subsidiaries, provides communications, technology, information, and streaming products and services to consumers, businesses, and government entities. With a presence around the world, the company offers data, video, and voice services and solutions on its networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity, and security.
Segments
The company operates through two segments: Verizon Cons...
Verizon Communications Inc. (Verizon), through its subsidiaries, provides communications, technology, information, and streaming products and services to consumers, businesses, and government entities. With a presence around the world, the company offers data, video, and voice services and solutions on its networks and platforms that are designed to meet customers’ demand for mobility, reliable network connectivity, and security.
Segments
The company operates through two segments: Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Verizon Consumer Group
This segment provides consumer-focused wireless and wireline communications services and products. The company’s wireless services are provided across one of the most extensive wireless networks in the United States (U.S.) under the Verizon family of brands and through wholesale and other arrangements. The company also provides fixed wireless access (FWA) broadband through its fifth-generation (5G) or fourth-generation (4G) Long-Term Evolution (LTE) networks as an alternative to traditional landline internet access. The company’s wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over its100% fiber-optic network through its Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios.
As of December 31, 2024, Consumer had approximately 115 million wireless retail connections (including FWA), of which 83% are postpaid connections. In addition, on December 31, 2024, Consumer had approximately 10 million total broadband connections (which includes Fios internet, FWA and Digital Subscriber Line (DSL) connections), and approximately 3 million Fios video connections.
Verizon Business Group
This segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long distance voice services, and network access to deliver various Internet of Things (IoT) services and products. The company provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
As of December 31, 2024, Business had approximately 31 million wireless retail postpaid connections (including FWA) and approximately 2 million total broadband connections (which includes Fios internet, FWA, and DSL connections).
Service and Product Offerings
Wireless Services and Equipment
The company provides a wide variety of wireless services to Consumer and Business customers on different service plan options.
The company’s Consumer Group offers customizable, personalized phone plans for retail customers, allowing them to design the plan that fits their needs, including access to their preferred content and services. The company also offers plans for customers who want access to Verizon’s network at a lower price point, as well as discounts and special rate plans for qualifying customers.
Customers can obtain the company wireless services on a postpaid or prepaid basis. Retail (non-wholesale) postpaid accounts primarily represent retail customers that are directly served and managed by Verizon and use Verizon branded services. A single account may include monthly wireless services for a variety of connected devices. The company’s postpaid service is generally billed one month in advance for a monthly access charge in return for access to and usage of network services. The company’s prepaid service is offered only to Consumer customers and enables individuals to obtain wireless services without credit verification by paying for all services in advance. As of December 31, 2024, the company had 95 million postpaid connections and 20 million prepaid connections, representing approximately 83% and 17% of its Consumer wireless retail connections, respectively.
The company’s Business customers can choose from a variety of plans with different features to meet their specific needs.
The company also provides FWA broadband through its 5G or 4G LTE wireless networks to its Consumer and Business customers. FWA enables fixed broadband access using radio frequencies instead of cables and can be used to connect homes and businesses to the internet. As of December 31, 2024, the company had nearly 4.6 million FWA broadband connections.
Consumer and Business offer several categories of wireless equipment to customers, including a variety of smartphones and other handsets, wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices, such as smart watches. Oftentimes, the company offers promotional trade in offers to incentivize new customers or existing customer upgrades. Consumer wireless customers can acquire wireless equipment from the company using device payment plans, which permit the customer to pay for the device in installments over time. Customers that activate service on devices purchased under the device payment program generally pay lower service fees as compared to those under the company fixed-term service plans, and their device payment plan charge is included on their wireless monthly bill. While the company’s no longer offers Consumer customers fixed-term subsidized service plans for devices, it continues to offer subsidized plans to its Business customers. The company also continues to service existing plans for customers who have not yet purchased and activated devices under the Verizon device payment program.
Verizon Consumer Group
In addition to wireless services and equipment for retail customers, the Consumer segment sells residential fixed connectivity solutions, including internet, video and voice services, and wireless network access to resellers on a wholesale basis. Consumer also provides non-connectivity services, including device protection, content offerings, cloud storage, and other products.
Residential fixed services –The company provides residential fixed connectivity solutions to customers over its 100% fiber-optic network through its Verizon Fios product portfolio and over a traditional copper-based network to customers who are not served by Fios. The company also provides FWA broadband through both 5G and 4G LTE home internet offerings, which are available in most states across the U.S.
The company offers residential fixed services tailored to the needs of its customers with a variety of perk options and the flexibility to change them. Depending on customer needs at a particular time, the company’s services may include features related to, among other things: internet access at different speed tiers using fiber-optic, copper or wireless technology; video services that may feature a variety of content and streaming options, video on demand products, cloud-based services and digital video recording capabilities; over-the-top (OTT) video services; voice services; and other home solutions.
Network access services –The company sells network access to mobile virtual network operators (MVNOs) on a wholesale basis, who in turn resell wireless service under their own brand(s) to consumers.
Verizon Business Group
In addition to the wireless services and equipment, the company’s Business segment provides a variety of wireless and wireline services and products, which are organized by the primary customer groups for these offerings: Enterprise and Public Sector, Business Markets and, Other and Wholesale.
Enterprise and Public Sector
Enterprise and Public Sector offers wireless products and services, as well as wireline connectivity, such as broadband and managed services to the company’s large business and public sector customers. Large businesses are identified based on their size and volume of business with Verizon. Public sector customers include U.S. federal, state and local governments and educational institutions. The company’s offerings to this customer group include plans with features and pricing designed to address their specific needs.
Enterprise and Public Sector offers a broad portfolio of connectivity, security and professional services designed to enable the company customers to optimize their business operations, mitigate business risks and capitalize on data. These services include the following:
Network services – The company offers a portfolio of network connectivity products to help its customers connect with their employees, partners, vendors, and customers. These products include internet access services, private networking services, private cloud connectivity services and virtual and software defined networking services.
Advanced communications services –The company offers a suite of services to its customers to help them communicate with their employees, partners, vendors, constituents and customers. These products include Internet Protocol (IP)-based voice and video services, unified communications and collaboration tools and customer contact center solutions.
Core services – The company provides a portfolio of domestic and global voice and data solutions utilizing traditional telecommunications technology, including voice calling, messaging services, conferencing, contact center solutions and private line, and data access networks. Core services also include the provision of customer premises equipment, and installation, maintenance and site services.
Security services –The company offers a suite of management and data security services that help its customers protect, detect, and respond to security threats to their networks, data, applications and infrastructure.
IoT services – The company provides the network access required to deliver various IoT products and services. The company works with companies that purchase network access from it to connect their devices, bundled together with their own solutions, which they sell to end users.
Business Markets and Other
Business Markets and Other offers wireless services (including FWA broadband), wireless equipment, advanced communication services, tailored voice and networking products, Fios services, advanced voice solutions and security services to businesses that ordinarily do not meet the requirements to be categorized as Enterprise and Public Sector. Business Markets and Other also includes solutions that support mobile resource management.
Business Markets and Other also provides fixed connectivity solutions comparable to the residential fixed services provided by Consumer, as well as business services and connectivity similar to the products and services offered to Global Enterprise customers, in each case with features and pricing designed to address the needs of small and medium businesses.
Wholesale
Wholesale offers wireline communications services, including data, voice, local dial tone and broadband services primarily to local, long distance, and wireless carriers that use the company’s facilities to provide services to their customers. Wholesale's services include:
Data services – The company offers a portfolio of data services to enhance its Wholesale customers’ networks and provide connections to their end users and subscribers.
Voice services – The company provides switched access services that allow carriers to complete their end-user calls that originate or terminate within its territory. In addition, the company provides originating and terminating voice services throughout the U.S. and globally utilizing its time-division multiplexing and Voice over Internet Protocol (VoIP) networks.
Local services –The company offers an array of local dial tone and broadband services to competitive local exchange carriers, some of which are offered to comply with telecommunications regulations. In addition, the company offers services, such as colocation, resale, and unbundled network elements in compliance with applicable regulations.
Distribution
The company uses a combination of direct, indirect, and alternative distribution channels to market and distribute its products and services to Consumer and Business customers.
The company’s direct channel, including its company-operated stores, is a core component of its distribution strategy. The company’s sales and service centers and business direct sales teams also represent significant distribution channels for its services. In addition, the company has a robust digital channel and omni-channel as a part of the customer experience in order to offer choice and convenience.
The company’s indirect channel includes agents that sell its wireless and wireline products and services at retail locations throughout the U.S., as well as through the internet. The majority of these sales are made under exclusive selling arrangements with the company. The company also has relationships with high-profile national retailers that sell its wireless and wireline products and services, as well as convenience store chains that sell its wireless prepaid products and services.
In addition to its direct channel, the company’s Business segment has additional distribution channels that include business solution fulfillment provided by resellers, non-stocked device fulfillment performed by distributors and integrated mobility services provided by system integrators and resellers.
Global Networks and Technology
Networks
The company designs, builds and operates networks to provide connectivity and related services meeting the needs of its diverse customers: consumers, businesses, government organizations, and educational institutions.
Technologies –The company’s networks leverage advanced technologies, including 5G wireless, fiber-based transport, cloud infrastructures, private networks, and IP routing solutions.
Scale and geography –The company operates a national network covering over 146 million wireless retail connections as of December 31, 2024. In addition to the company’s significant U.S. infrastructure, it has a presence globally and relationships with many operators and partners allowing it to service multinational network needs.
Services and capabilities – The company provides connectivity, access to the internet, voice calling, text messaging and both linear and streaming video capabilities. Beyond these basic services, the company’s network solutions include advanced services and capabilities, such as E911, first responder solutions, and private networking solutions.
Reliability –The company strives to design and deploy reliable networks. The company tests its networks for reliability and use various methods and procedures to maintain network availability, capability and capacity. To mitigate the impact of power disruptions on the company’s operations, it has battery backup at every switch and every macro cell. The company also utilizes backup generators at a majority of its macro cells and at every switch location. In addition, the company has a fleet of portable backup generators that can be deployed if needed.
Network Evolution
The company considers the reliability, speed, capacity, coverage and security of its wireless network to be key factors in its continued success. The company is evolving and transforming its networks to ensure its customers receive access to the best network possible. Areas of evolution and transformation include:
5G Wireless – Verizon has driven the conversion from 4G to 5G through a sequence of network changes involving the radio access network, the core network infrastructure and change to the devices connecting to the network. Over the past several years, the company has been leading the development of 5G wireless technology industry standards and the ecosystems for fixed and mobile 5G wireless services. 5G technology enables higher throughput and lower latency than 4G LTE technology and allows the company’s networks to handle more traffic as the number of internet-connected devices and customer usage needs grow. The company’s evolution to 5G with its new architecture allows it to simplify operations by eliminating legacy network elements.
Coverage and densification –The company continues to improve 5G wireless service coverage by leveraging its breadth of wireless spectrum, including millimeter wave and C-Band spectrum, which it is continuing to deploy across the continental U.S. The company is densifying its networks by utilizing macro and small cell technology, in-building solutions and distributed antenna systems. Network densification enables the company to increase coverage, improve quality of service and add capacity to accommodate an increasing number of users. It also supports the company’s growing FWA business and growing bandwidth needs for uses, such as streaming and video content creation.
Virtualization –The company is leveraging the benefits of cloud computing and storage as it evolve its network infrastructure. The company’s private cloud infrastructure allows it to use shared compute, storage and networking resources rather than building unique physical instances for its network infrastructure.
Fiber transport and IP networking –The company owns and operates one of the largest global fiber-optic networks in the world, providing connectivity to Business customers in more than 180 countries. The company’s global IP network includes long-haul, metro and submarine assets that enable and support international operations. In response to growing bandwidth demand, it has upgraded and increased its long-haul core fiber-based transport capacity, as well as its IP network capacity and efficiency. The company continues to build local fiber networks by adding fiber connectivity to premises, venues, cell tower locations, and data centers.
Energy efficiency –The company strives to improve the energy efficiency of its networks, facilities and fleet. The company is balancing increased energy needs from ongoing expansion and densification of its networks with initiatives to effectively manage energy consumption, including using more energy-efficient equipment and pursuing opportunities to use renewable energy sources.
Fios
While deployed initially as a consumer broadband network, the company’s Fios infrastructure is also experiencing more widespread application in the Business segment, especially as businesses increasingly migrate to ethernet-based access services.
In September 2024, the company entered into an agreement to acquire Frontier Communications Parent, Inc. (Frontier), a U.S. provider of broadband internet and other communication services. Upon closing, this transaction is expected to enhance the company’s fiber broadband footprint and provide opportunities for future Fios growth.
Spectrum
The spectrum licenses the company holds can be used for mobile and fixed wireless voice, video and data communications services. The company is licensed by the Federal Communications Commission (FCC) to provide these wireless services on the following low and mid-band spectrum in areas that collectively cover nearly all of the population of the U.S.: the 700 MHz Upper C block, Cellular spectrum (850 MHz), Personal Communication Services (PCS) spectrum (1900 MHz), AWS 1 and AWS 3 bands (1700 MHz uplink and 2100 MHz downlink), and the 3.7 GHz band (C-Band). The company also holds spectrum licenses in the 28, Upper 37 and 39 GHz bands, known as millimeter wave spectrum, and utilize both Priority Access Licenses (PALs) and General Authorized Access (GAA) in the 3.5 GHz band (Citizens Broadband Radio Service).
The company anticipates that demand for spectrum will continue to increase over time, driven by growth in customer connections, and the increased usage of wireless broadband services that use more bandwidth and require faster rates of speed, as well as the wider deployment of 5G mobile and fixed services.
Competition
The company competes against other national wireless service providers, including AT&T Inc. and T-Mobile US, Inc., as well as various regional wireless service providers. The company also competes for retail activations with resellers that buy bulk wholesale service from wireless service providers, including Verizon, and resell it to their customers. Resellers include cable companies, such as Comcast Corporation and Charter Communications, Inc., and others.
Patents, Trademarks and Licenses
The company also actively grant licenses, in exchange for appropriate fees or other consideration and subject to appropriate safeguards and restrictions, to other companies that enable them to utilize certain of its intellectual property rights and proprietary technology as part of their products and services. Such licenses enable the licensees to take advantage of Verizon's brands and the results of Verizon’s research and development efforts.
Regulatory Trends
Some of the company’s competitors are subject to fewer regulatory constraints than Verizon. For many services offered by Verizon, the FCC is the company’s primary regulator. The FCC has jurisdiction over interstate telecommunications services and other matters under the Communications Act of 1934, as amended (Communications Act). Other Verizon services are subject to various state and local regulations.
The FCC regulates several aspects of the company’s wireless operations. If demand continues to increase or if new spectrum is required for a future generation of technology, the company can meet its needs for licensed spectrum by purchasing licenses or leasing spectrum from others, or by participating in a competitive bidding process to acquire new spectrum from the FCC.
As of 2024, Verizon holds FCC spectrum licenses that allow it to provide a wide range of mobile and fixed communications services, including both voice and data services. Some of the company’s licenses requires it to comply with so-called ‘open access’ FCC regulations, which generally require licensees of particular spectrum to allow customers to use devices and applications of their choice, subject to certain technical limitations.
In addition, wireless tower and antenna facilities are often subject to state and local zoning and land use regulation, and securing approvals for new or modified facilities is often a lengthy and expensive process.
At the federal level, the company’s business is governed by the FCC or the Federal Trade Commission (FTC), depending on the product or service.
History
The company was incorporated in 1983 under the laws of the state of Delaware. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in 2000.
