Mike Millegan
President ▪ Global Wholesale ▪ Verizon Communications
27 September 2011
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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“SAFE HARBOR” STATEMENT
NOTE: This presentation contains statements about expected future events and financial results that are forwardlooking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; the effect of material changes in available technology; any disruption of our key suppliers’ provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural disasters, terrorist attacks, breaches of network or information technology security or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions ; and the inability to implement our business strategies.
PROPRIETARY STATEMENT
This document and any attached materials are the sole property of Verizon and are not to be disseminated, distributed, or otherwise conveyed throughout your organization to employees without a need for this information or to any third parties without the express written permission of Verizon. The Verizon and Terremark names and logos and all other names, logos, and slogans identifying Verizon ’s products and services are trademarks and service marks or registered trademarks and service marks of Verizon Trademark Services LLC or its affiliates in the United States and/or other countries. All other trademarks and service marks are the property of their respective owners.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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It’s About Business
Creating & Contributing Value
Next-Gen Offerings
Collaboration = Opportunity Creation
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Maximize business performance.
• Market Share
• Revenue
• Profit Margin
• CapEx
• OpEx
• EBITDA
• P&L Statement
Contribute growth to the bottom line.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Economic uncertainty diminishes prospects for achieving business objectives.
Customers pare back or postpone network projects in response to economic uncertainty.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Uncertainty can create new opportunities for customer engagement.
Leadership.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Evolve from a tactical vendor/supplier to a strategic business partner.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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• Significant market demand for network speeds
• Broadband access and households online growing
• Video evolving to anytime, anywhere & on any device
• Businesses shift toward secure IP & managed services
• Significant growth in cloud computing services
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Requires a connected global ecosystem.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Enable secure information exchange to everyone and everything everywhere for better business outcomes.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Global Assets & Strategic Global Positioning
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Secure access to reliable High IQ networks.
100G Ethernet
Ultra-Long Haul Optical
4G LTE in 38 US markets and 60 airports
Nationwide by 2013
Private IP in 165 markets and 222 locations
22 new locations in 2011
Blending together networks, applications, devices, and security for personalized and pervasive services delivery.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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• Application Store
• Open Development
• M2M Platform
• Hosted Mobile Apps
• Vertical Solutions
• FlexView
• Video
• Verizon.net Services
Global IP
• Business Apps Access
•
Communication Apps
• Enable Mobile Apps
•
SMB Services
•
Digital Voice
Cloud Services
• Cloud Computing
• Business Platforms
Superior global assets, strong strategic position
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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• Single MPLS core with lower latency
• 10x growth in capacity with a path to 100x growth
• Application awareness and traffic optimization
• Integration with Data
Centers
Private Networks Public
Networks
Public Networks
MPLS
Core
Private
Networks
A Verizon
Company
Service
Aggregator
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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• Converged Global Metro Design
– GPON Access
– High Speed
Ethernet
– Wireless Backhaul
– Service Differentiation
• Leverage FTTP and FTTC investments
• Operational model improvements
Hi-Cap
L2A
Hi-Cap
L2A
Metro MPLS
Transport
Intelligent Traffic
Distribution
Hi-Cap
L2A
Ethernet
Aggregator
10GE or 100GE
Native Ethernet From Customer to Services
Public Networks
100G Native
Ethernet Core
Public Networks
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Small Medium Business Enterprises in the US Machine to Machine Global Data Roaming
• Go to Market with
CLECs
• Wireless backup
• Mobile Private
Networking, EVDO access to PIP
• Vertical
Opportunities
• Provider of choice in the U.S.
• Pull through for
Wireline opportunities
• Fixed Mobile
Convergence
• Align with Systems
Integrators and
Service Providers
• Focus on utilities and retail verticals
• Global opportunity to leverage best practices
• Leverage “buysell” model for voice & data
• Relationships with International
Carriers
• Increase profitability and efficiency
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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• High Quality Video delivery
• Cloud streaming
• Multicast and unicast
LTE Broadcast
• Device and network optimization
• Content security
Content
Server
IP TV Multicast
Storage Node
Verizon
IP
Network
PO
N
Origin
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Verizon Digital Media Services will:
 Store
 Create

Digitally pick, pack and ship

Enable individualized media streams
Our customers will benefit from:
 Verizon-class infrastructure
 Automation on an unmatched scale
 Content-to-consumer delivery
 Proactively adaptive service

Game-changing economics
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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On-demand Cloud Delivery with Virtualized
Data Center Assets and Resources
Public Cloud Hybrid Cloud Private Cloud
Cloud resources span multiple continents – doubling in 2011.
Increasing number of worldwide cloud storage data centers.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Latest International Deployment
CaaS
Amsterdam
Cloud
Storage
Amsterdam
New cloud services center opened in
Amsterdam on 21 September 2011
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Current Footprint and Planned 2011 Expansions
Cloud
Storage
San Jose
Cloud
Storage
Toronto
Cloud
Storage
Stockholm
Cloud
Storage
Frankfurt
Cloud
Storage
Tokyo
CaaS
Beltsville
CaaS
London
CaaS
Hong Kong
CaaS
San Jose
Cloud
Storage
Beltsville
Cloud
Storage
London
Cloud
Storage
Hong Kong
CaaS
Canberra
Cloud
Storage
Canberra
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Launch CaaS Services
(June 2010)
• Leverage Verizon Infrastructure and Network
• Sales Training and Enablement
• Launch Global “Go to Market” Campaign
Proof of Concept… Testing the Model
• Reinforce Value Proposition
• Execute Strategic Customer Agreements
• “White Label” Portals
Expand Market Reach & Broaden Portfolio
• Carrier-neutral Model
• Sales Teaming and Support
• Expand Security and Professional Services
3 Oct
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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“Providers should quickly embrace cloud computing in their service strategy.”
This should include implementation and provision of public cloud services, and services related to establishing private cloud models for customers.
Source: The Influence of Cloud in Outsourcing, 2010-2011 , Gartner, December 1, 2010
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Infrastructure
Systems
Operations
Product Development
Testing
Training ●
Deployment ●
Marketing ●
Sales ●
Provisioning ●
Maintenance ●
Service & Support ●
QoS Assurance ●
High Cost / Risk Strategy
Capital + Resource Intensive
Loss of Early-Mover Advantage
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

S ecure
End-to-end physical, network, server, app, data, storage, and access security.
A gile
Offer what you want, how you want, where you wish, when you choose.
F ast
Immediate market-entry, value-add, creation of new revenue opportunity.
E fficient
Focus your financial, intellectual, and human capital on your core business.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distrib ution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
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