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Verizon

From Alfawiki
Verizon Communications Inc.
Company typePublic
IndustryTelecommunications
PredecessorBell Atlantic
Founded1983; 43 years ago (1983)
Headquarters
New York City
,
United States
Area served
United States (nationwide)
Key people
Hans Vestberg (CEO and Chairman), Tony Skiadas (Executive Vice President & CFO)
ProductsFixed and mobile telephony, broadband, IPTV, Internet of things solutions
Revenue$134.79 billion (2024)
$28.69 billion (2024)
$17.95 billion (2024)
Number of employees
85,000+ (2000 (strike year; exact current number not specified))
Websitewww.verizon.com

Verizon Communications Inc. () is a leading American telecommunications corporation based in New York City. Ranking as the second-largest telecom company worldwide by revenue, it operates the biggest wireless network in the United States, serving 146.1 million subscribers as of June 30, 2025.

Originally founded in 1983 under the name Bell Atlantic following the dissolution of the Bell System, its initial service area included Pennsylvania, New Jersey, Delaware, Maryland, Virginia, and West Virginia. In 1997, Bell Atlantic expanded its footprint by merging with the Baby Bell company NYNEX, thereby incorporating New York and New England into its market and relocating its headquarters to New York City. The acquisition of GTE in 2000 further extended its coverage nationwide. Subsequently, Bell Atlantic adopted the Verizon brand name, a fusion of the Latin words veritas (meaning truth) and horizon.

Verizon’s corporate growth strategy involves branching into digital media, highlighted by its acquisition of AOL in 2015 and Yahoo! Inc. in 2017. These entities were merged into Oath Inc., which was rebranded as Verizon Media in 2019 before being divested and sold to Apollo Global Management.

As of 2016, Verizon stands among three principal companies that originated from former Baby Bells, alongside SBC Communications (now AT&T) and CenturyLink (now Lumen Technologies). Its organizational framework supports extensive market reach through divisions such as Verizon Consumer and Verizon Business.

Leadership includes CEO and Chairman Hans Vestberg and Executive Vice President & CFO Tony Skiadas. In 2024, Verizon reported revenues totaling $134.79 billion, operating income of $28.69 billion, and net income amounting to $17.95 billion, underscoring robust financial results fueled by a diverse portfolio encompassing fixed and mobile telephony, broadband services, IPTV, IoT solutions, and strategic industry leadership.

Bell Atlantic's Formation and Mergers with NYNEX, GTE, and Vodafone (1984–2002)

Established in 1984 as one of the original "Baby Bell" Regional Bell Operating Companies following the US Department of Justice’s breakup of the Bell System, Bell Atlantic Corporation initially operated through companies including The Bell Telephone Company of Pennsylvania, New Jersey Bell, Diamond State Telephone, and C&P Telephone.

In 1996, under CEO Raymond W. Smith’s leadership, Bell Atlantic merged with NYNEX, incorporating New York Telephone and New England Telephone into its operations. This merger resulted in relocating the company’s headquarters from Philadelphia to New York City and fully integrating NYNEX under the Bell Atlantic brand by 1997.

April 2000 saw Bell Atlantic form a joint venture with British telecom Vodafone to create Verizon Wireless by combining Bell Atlantic’s wireless assets with Vodafone’s AirTouch and PrimeCo holdings. Bell Atlantic held a majority stake of 55%, while Vodafone owned 45%. Valued at roughly $70 billion, this partnership gained significant competitive advantage through nationwide coverage and a subscriber base of 23 million.

Following Federal Communications Commission approval in June 2000 for its $64.7 billion merger with GTE—which was first announced in April 1998—Bell Atlantic rebranded itself as Verizon Communications. This merger established the largest local telephone company in the United States with operations spanning 63 million telephone lines across 40 states and inheriting approximately 25 million mobile subscribers. Leadership was shared between Charles Lee (GTE) and Ivan Seidenberg (Bell Atlantic). The FCC imposed 25 conditions aimed at preserving competition and promoting broadband investment.

In August 2000, nearly 85,000 Verizon employees initiated an 18-day strike following contract expirations. This labor action affected quarterly earnings and delayed Verizon Wireless’s anticipated initial public offering, which was ultimately canceled in 2003 due to improved fiscal performance.

Verizon introduced its third-generation (3G) network service in 2002, doubling internet speeds to 144 kbps. That same August marked the launch of bundled offerings combining local phone service, long-distance calling, mobile communication, and Internet access initially available in New York and Massachusetts.

Early growth phase (2003–2010)

In April 2004, Verizon Communications entered the Dow Jones Industrial Average, taking the place of rival AT&T. That same year, Verizon introduced its fiber-optic broadband service, Fios, initially in Keller, Texas, followed by the launch of Fios TV in 2005. By early 2006, Fios was available in seven states with over 350 channels, including high-definition content and video-on-demand features, representing a significant strategic push into broadband and television sectors.

To combat spam, Verizon blocked email traffic from Europe in 2004, a decision that led to customer dissatisfaction and a class-action lawsuit resolved in 2006. Beginning in 2005, Verizon shifted its focus toward mobile, Internet, and television services by divesting various wireline assets and international operations. This included selling 700,000 telephone lines in Hawaii (2005), transferring northern New England lines to FairPoint Communications for $2.72 billion (2007), and divesting telephone directory businesses (2006). In 2009, Verizon sold wireline infrastructure across 14 states to Frontier Communications for $8.6 billion and exited Caribbean telecommunications by selling units to América Móvil.

In 2015, Verizon capitalized on its wireless tower assets through a $5.1 billion transaction with American Tower Corp., which funded a $10.4 billion acquisition of AWS-3 spectrum licenses aimed at enhancing wireless network capacity. The company further reduced wireline holdings in Texas, Florida, and California through sales to Frontier in 2016.

Verizon acquired the long-distance carrier MCI in 2005 for $7.6 billion after a competitive bidding process, gaining access to MCI’s corporate clientele and international reach. This acquisition resulted in the establishment of the Verizon Business division and contributed to a revenue increase of up to 20% by 2006.

In 2006, Verizon faced legal challenges over allegations that it provided the NSA with customer phone records post-9/11 without warrants; while the company stated it complied with lawful requests, it admitted to releasing data without court orders multiple times between 2005 and 2007.

In March 2007, Verizon prevailed in a patent infringement case against Vonage, winning $58 million plus future royalties; an appeal raised damages to $120 million. That year also saw Verizon acquire CyberTrust, expanding its global information security offerings.

Verizon reversed an earlier refusal to grant NARAL Pro-Choice America access to text messaging short codes in 2007, reflecting broader corporate social responsibility trends. Additionally, it opened its network to third-party applications and devices that year to participate in the FCC’s 2008 "open access" spectrum auction. Verizon bid $9.4 billion during this auction, securing extensive licenses covering roughly 469 million people to support its emerging 4G network.

Wireless operations expanded through acquisitions including Rural Cellular Corp. for $2.7 billion (2008) and Alltel for $28.1 billion (2008), adding approximately 13 million subscribers and surpassing AT&T in total customer count with stronger rural market penetration.

In early 2010, Verizon Wireless briefly restricted access to certain online content due to security concerns but quickly restored service thereafter.

By August 2010, Verizon’s CEO and Google’s chairman reached an understanding on defining network neutrality with certain limitations reflecting changing market conditions.

In October 2010, Verizon Wireless paid $77.8 million in refunds and FCC fines for inadvertent overbilling of data services affecting some 15 million customers.

December 2010 marked the launch of Verizon’s 4G LTE network across 38 metropolitan areas and seven airports, initiating a planned three-year rollout of advanced wireless technology.

Service Expansion (2011–Present)

At the beginning of 2011, Verizon enhanced its enterprise service offerings by acquiring IT services firm Terremark for $1.4 billion. Ivan Seidenberg stepped down as CEO on August 1, 2011, with Lowell McAdam taking over the role.

In December 2011, Verizon encountered scrutiny regarding its tax strategies and executive compensation amid workforce reductions; nonetheless, SEC disclosures revealed the company paid over $11.1 billion in taxes between 2009 and 2011, attributing job cuts primarily to voluntary retirements.

Verizon ventured into automotive wireless technology by purchasing Hughes Telematics for $612 million in June 2012. That same month, the June derecho storm caused interruptions in Verizon's E-911 service, leading to an FCC investigation and subsequent upgrades to its infrastructure.

The FCC ruled against Verizon’s practice of charging additional fees for Wi-Fi tethering on 4G devices, resulting in a $1.25 million settlement paid to the U.S. Treasury. In August 2012, Verizon acquired AWS spectrum from cable operators for $3.9 billion, strengthening its LTE network capacity.

In 2013, Verizon complied with an FBI directive to supply the NSA with telephone metadata for domestic calls; however, Verizon Wireless was exempt due to foreign ownership restrictions.

Verizon purchased Vodafone’s 45% stake in Verizon Wireless for $130 billion, completing the transaction in February 2014 and obtaining full control of its wireless operations.

In January 2014, following a lawsuit filed by Verizon, the DC Circuit Court invalidated FCC net neutrality regulations; these rules were later reinstated after a 2016 appellate court decision.

In 2013, Verizon received over 321,000 requests from law enforcement agencies seeking customer data. By May 2015, it agreed to pay $90 million to resolve probes into improper billing practices.

The company launched the technology news platform SugarString in October 2014 but discontinued it by December amid disputes over editorial independence.

August 2015 saw the introduction of Hum, a vehicle diagnostic product. The subsequent year included acquisitions of Fleetmatics for $2.4 billion to enhance fleet telematics capabilities and Sensity to broaden Internet of Things services. Later in 2016, Verizon acquired SocialRadar, a mapping startup, to improve MapQuest functionality.

In 2016, the Communications Workers of America accused Verizon of favoring wireless VoiceLink technology over repairs to copper telephone lines; Verizon defended this approach as essential for prompt service restoration.

Early in 2017, Verizon explored a potential merger with Charter Communications; however, Charter declined due to disagreements over valuation.

Verizon expanded its fiber-optic infrastructure by acquiring XO Communications’ fiber assets for $1.8 billion in February 2017 and subsequently purchased WideOpenWest’s Chicago fiber assets for $225 million.

New York City filed a lawsuit against Verizon in 2017 over alleged failure to meet fiber deployment commitments; Verizon cited landlord access challenges and differing interpretations of franchise obligations as reasons.

In 2018, Verizon consolidated its telematics businesses under the Verizon Connect brand to streamline connected vehicle and mobile workforce solutions.

A voluntary separation program reduced Verizon’s workforce by approximately 7% in late 2018 alongside a $4.6 billion impairment charge related to its media division amid competitive pressures.

Hans Vestberg succeeded Lowell McAdam as CEO on August 1, 2018, prioritizing acceleration of Verizon’s 5G network deployment. Early in 2019, the company reorganized into Consumer, Business, and Media segments.

Starting March 2019, Verizon provided complimentary anti-spam and robocall-blocking services to all customers.

Verizon launched its millimeter-wave (mmWave) based 5G network across several cities in April 2019 but encountered challenges due to mmWave’s limited range and penetration capabilities.

In January 2020, Verizon introduced OneSearch, a privacy-centric search engine. In May of that year, it acquired BlueJeans, a videoconferencing company, expanding its unified communications portfolio.

In September 2020, Verizon announced plans to acquire TracFone Wireless for $6.25 billion; the acquisition was completed following FCC approval in November 2021.

Deployment of Verizon’s 5G network experienced delays in early 2021 due to FAA concerns about interference with aircraft systems; rollout resumed with operational restrictions near airports after regulatory agreements were reached.

Also in early 2021, Verizon significantly increased its mid-band C-Band spectrum holdings by investing $52.9 billion at an FCC auction aimed at enhancing nationwide 5G coverage.

In December 2023, Verizon revealed plans to establish a global center of excellence in Limerick, Ireland—expanding its European presence with over 400 new positions focused on technology and communications roles.

By May 2024, Verizon partnered with satellite manufacturer AST SpaceMobile to improve cellular and broadband connectivity in remote areas across the U.S. through direct-to-cell satellite technology.

On September 5, 2024, Verizon declared its intention to acquire Frontier Communications for $20 billion in an all-stock transaction designed to expand its fiber infrastructure network.

In May 2025, amid pressure from a federal investigation initiated during the Trump administration era, Verizon terminated its diversity, equity, and inclusion initiatives.

Acquisition of AOL and Yahoo

In 2015, Verizon purchased AOL for roughly $4.4 billion, acquiring shares at a price of $50 each. The subsequent year, Verizon revealed its plan to buy Yahoo's primary internet operations for $4.83 billion. These transactions resulted in the formation of a new segment named Oath, which unified the AOL and Yahoo brands under a single entity. Importantly, Yahoo’s holdings in Alibaba Group and Yahoo! Japan were not part of this deal.

By 2017, Verizon CEO Lowell McAdam announced intentions to introduce a streaming television service, utilizing the combined AOL-Yahoo platform within Oath. This service was structured around essential content areas to strengthen market presence and drive business expansion.

The acquisition of Yahoo was completed by Verizon on June 13, 2017. However, in 2021, Verizon divested its media division—including AOL and Yahoo—to Apollo Global Management for $5 billion, while retaining a 10% ownership stake. This decision aligned with Verizon’s strategic emphasis on its core telecommunications operations, yet allowed it to maintain investment exposure in digital media ventures.

Finances

For the fiscal year 2024, Verizon reported net earnings of US$17.95 billion alongside revenues totaling US$134.79 billion, marking a 0.6% growth compared to the previous year. The company’s shares were valued above $45, with a market capitalization surpassing US$163.96 billion as of January 2025. Verizon secured the #31 position on the 2023 Fortune 500 list and ranked #68 on the Fortune Global 500.

Year Revenue
in million US$ 		Net income
in million US$ 		Total Assets
in million US$ 		Price per Share
in US$ 		Employees
2005 69,518 7,397 168,130 33.85
2006 88,182 6,197 188,804 34.05
2007 93,469 5,521 186,959 41.22
2008 97,354 −2,193 202,352 34.90
2009 107,808 4,894 226,907 30.46
2010 106,565 2,549 220,005 30.41
2011 110,875 2,404 230,461 36.64
2012 115,846 875 225,222 42.00
2013 120,550 11,497 274,098 48.66 176,800
2014 127,079 9,625 232,616 48.61 177,300
2015 131,620 17,879 244,175 47.17 177,700
2016 125,980 13,127 244,180 51.40 160,900
2017 126,034 30,101 257,143 48.24 155,400
2018 130,863 15,528 264,829 52.08 144,500
Year (cont.) Revenue
in million US$ 		Net income
in million US$ 		Total Assets
in million US$ 		Price per Share
in US$ 		Employees (cont.)
131,868 19,265 291,727 58.06 135,000
128,292 18,348 316,481 58.75 132,200
133,613 22,618 366,596 52.25 118,400
136,835 21,748 379,680 39.40 117,100
133,974 12,095 380,255 40.15 105,400
134,788 17,949 374,711 38.90 99,600

States

Verizon delivers internet services—including fiber-optic Fios—landline or VoIP telephone options; home security systems; pay-TV bundles; web hosting; and wholesale data offerings across nine states located in the eastern United States.

Primary service areas include:

  • Delaware
  • Maryland (Baltimore; Salisbury)
  • Massachusetts (Boston)
  • New Jersey
  • New York (Albany; Auburn; Binghamton; Buffalo; Glens Falls; Saratoga Springs; Long Island; New York City; Plattsburgh; Syracuse)
  • Pennsylvania (Harrisburg; Philadelphia; Pittsburgh)
  • Rhode Island (Providence)
  • Virginia (Norfolk; Richmond)
  • Washington D.C.

These regions constitute Verizon’s targeted markets for broadband and telecommunications services in the eastern U.S., underpinning its competitive edge through fiber-optic infrastructure and comprehensive service integration.

Marketing campaigns

Since its establishment, Verizon Communications has introduced multiple marketing initiatives, including:

Can you hear me now?

The "Can you hear me now?" campaign, launched in 2001 for Verizon Wireless, starred actor Paul Marcarelli as "Test Man," a network tester traveling nationwide asking the memorable question. Created by the New York-based agency Bozell, this campaign continued until September 2010. Initial outcomes demonstrated notable business expansion: net subscribers grew by 10% to 32.5 million in 2002 and by 15% to 37.5 million in 2003, while customer churn declined from 2.5% in 2000 to 1.8% in 2001. In 2011, Marcarelli departed Verizon to serve as a spokesperson for Sprint.

There's a map for that

Debuting in late 2009, the "There's a map for that" campaign humorously mimicked AT&T's "There's an app for that" advertisements by contrasting Verizon’s and AT&T’s network coverage maps. In November 2009, AT&T initiated legal action against Verizon over allegedly deceptive coverage maps; both parties withdrew their lawsuits within the same month.

Executives

[1]

Corporate responsibility

Verizon contributes to community welfare through The Verizon Foundation, its charitable branch. Programs include HopeLine, which provides mobile devices to survivors of domestic violence, and the Verizon Innovative Learning Schools initiative aimed at enhancing STEM education.

From 2019 through 2023, Verizon issued five green bonds totaling $5 billion; funds raised in 2023 were dedicated to developing sustainable electrical grid technologies.

In 2020, Verizon unveiled its "Citizen Verizon" strategy outlining social and environmental commitments such as attaining carbon neutrality by 2035 and delivering digital skills training to young people.

Security concerns

Google Project Zero researcher Tavis Ormandy criticized Verizon’s oversimplified certification procedure for its "Excellence in Information Security Testing" accolade, which prioritized graphical user interface features over fundamental security mechanisms. Problems missed included the Chromodo browser disabling the same-origin policy, weak default authentication in VNC implementations, absence of address space layout randomization (ASLR) during scanning processes, and heavy reliance on access control lists (ACLs).

In 2024, Verizon’s network security was compromised by the advanced persistent threat known as Salt Typhoon, attributed to Chinese state actors.

Net neutrality

Since the early 2000s, Verizon along with Comcast has actively opposed Federal Communications Commission regulations requiring equal internet speeds across all content types. In 2014, Verizon unsuccessfully contested the FCC’s regulatory authority in court.

In July 2017, Verizon acknowledged throttling streaming platforms such as Netflix and YouTube to speeds of 10 Mbit/s on its mobile network, describing this as an experiment to "optimize video performance" without degrading quality.

Misleading 5G Advertising

In May 2020, the Better Business Bureau reprimanded Verizon for advertising that it was "building the most powerful 5G experience for America" without adequately clarifying the limited actual reach of its 5G network. Earlier, in March 2019, Verizon faced criticism for promotional materials implying it had launched the first mobile wireless 5G network before the technology was broadly accessible, thereby creating consumer misconceptions about its availability.

Data Privacy

Verizon has received a one-star rating for privacy from the Electronic Frontier Foundation. In April 2024, the FCC imposed a nearly $47 million fine on Verizon for unlawfully sharing customers’ real-time location information, underscoring substantial compliance challenges that impact both its reputation and regulatory compliance.

Sponsorships and Venue Partnerships

Verizon maintains sponsorship agreements with leading sports entities and holds naming rights to several high-profile performance and sports venues, bolstering its brand exposure and market presence.

National Hockey League

Since January 2007, Verizon has held exclusive marketing and promotional rights with the National Hockey League. This collaboration expanded in 2012 to grant Verizon exclusive NHL content through its GameCenter app, increasing customer interaction and broadening its digital service portfolio.

Motorsports

Verizon sponsored Justin Allgaier in the NASCAR Nationwide Series during 2009 and 2010 before concluding a two-year partnership with Penske Racing to focus on growing its role in the IndyCar Series. In March 2014, Verizon took on title sponsorship of the IndyCar Series through 2018, strengthening its influence within motorsports. Additionally, Verizon served as sponsor for the 2021 NASCAR Cup Series event, the Verizon 200 at Indianapolis Motor Speedway.

National Football League

At the end of 2010, Verizon teamed up with Vodafone Group to replace Sprint as the official wireless telecommunications partner of the National Football League (NFL) under a four-year contract valued near $720 million. This alliance was extended in June 2013 with a $1 billion agreement lasting another four years, securing rights to stream all NFL regular-season and playoff games. This partnership significantly enhanced Verizon’s brand recognition and digital content capabilities within a critical market segment.

USA Team Handball

In January 2020, Verizon became a founding partner of USA Team Handball, initially through 2020 with an option to extend until 2024. The company sponsors jerseys for both men's and women's national handball and beach handball teams and supports the USA Team Handball College Nationals.

In 2020, USA Team Handball CEO Barry Siff announced intentions to establish a professional American team handball league sponsored by Verizon. Planned to launch in 2023 with ten teams valued between $3 million and $5 million each, the league aims to collaborate with owners from the NBA or NHL for arena partnerships. The vision includes creating multisport clubs akin to FC Barcelona or Paris Saint-Germain, fostering expanded market reach and business development.

2026 FIFA World Cup

In September 2024, Verizon was announced as an official sponsor of the 2026 FIFA World Cup, which will take place across the United States, Canada, and Mexico. The company will deliver cellular connectivity within stadiums, fan zones, and metropolitan areas of host cities, utilizing its extensive global network to improve fan engagement and elevate brand presence throughout this prominent international sporting event.

Venues

The primary performance space for the Philadelphia Orchestra at the Kimmel Center for the Performing Arts is designated Verizon Hall.

Verizon has previously held sponsorship agreements with various sports and entertainment venues, such as Simmons Bank Arena (formerly known as Verizon Arena) in North Little Rock, Arkansas; the Mayo Clinic Health System Event Center (formerly Verizon Center) located in Mankato, Minnesota; and the SNHU Arena in Manchester, New Hampshire, which was initially named Verizon Wireless Arena until Southern New Hampshire University secured naming rights in 2016 for a minimum duration of ten years. Additionally, Verizon maintained naming rights for multiple "Verizon Wireless Amphitheatre" sites across the United States, including locations in Irvine, California; Maryland Heights, Missouri; Selma, Texas; and Alpharetta, Georgia.

Verizon also served as the previous naming sponsor for the Capital One Arena in Washington, DC.

See also

External links

  1. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named WSJ2023
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