Verizon Wireless 2006 Annual Report Download - page 10
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Muchofthisgrowthcomesfromourleadershipinwirelessdata,whichin2006
accountedfor$4.5billioninrevenues.Weendedtheyearwith34.3millionretail
datacustomers.WithVCASTservicesandotherhigh-speedapplications,Verizon
Wirelessistransformingthecellphoneintoamultimediadevicecapableofdeliver-
ingmusic,Internetaccess,videoandlocatorservices.Thisgivesusenormousroom
forgrowthaswemarkettheseservicestoourloyalcustomerbase.
WeclosedourmergerwithMCIinJanuary2006toformVerizonBusiness.In
itsrstyearofoperation,VerizonBusiness stakedoutastrongcompetitiveposi-
tionamongmultinationalcustomers.ThesuperiorglobalIPcapabilitiesthatMCI
broughttothetablegiveusaparticularlystrongpositioninthehigh-growthend
ofthelarge-businessmarket.
Verizon Business was the only U.S.-based large business carrier to show
quarter-over-quarter revenue growth, fueled by 27.3 percent growth in strate-
gicservicessuchasadvancedIPservices,virtualprivatenetworksandmanaged
networkservices.Ourindustry-leadingglobalnetworkallowsustoofferultra-long-
haul,convergedpacketaccessandotheradvancedcapabilitiesdemandedbythese
sophisticatedcustomers.Wealsoachieved$600millioninmergersynergies,which
exceededourtarget,andraisedourobjectivefor2007to$900million.
Ourprincipalgoal in Verizon Telecom is to transform ourtelecomfranchise
intoabroadbandandentertainmentbusiness.Todo that,weareinvestingina
bernetworkcapableofdeliveringtwo-way,high-denitionbroadbandandvideo
servicesatspeedscurrentlyupto50megabitspersecond,allthewaytohomesand
businesses–thefastestbroadbandserviceavailableinthemarkettoday.
Thishistoricproject–launchedinJuly2004–begantobearfruitin2006.Our
advancedber-opticnetworkpassedatotalof6.2millionhomesandbusinesses
bytheendoftheyear.WeexpandedourFiOSbrandofhigh-speeddataservices,
whichwhencombinedwithDSLgaveus 7millionbroadbandcustomersforthe
year,up35.7percent.WealsointroducedFiOSTVinSeptember2005andnowoffer
videotocustomersinhundredsofcommunitiesacrossthecountryincompetition
withcableproviders.Essentially,wecreatedacomplexnewbusinessfromscratch
inlessthantwoyearsandended2006with207,000videocustomers.Weexpect
videotogainevenmoremomentumin2007.
So2006wasanotheryearofsolidoperatingperformanceandsteadyprogress
intransformingourcompany.Wecompletedamajormerger,streamlinedourstruc-
ture,tookmarketshare,andputtelecomandglobalbusinessonapathtogrowth.
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Actual Forecast
U.S. HDTV Households
(millions)
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Y E A R
Source: Forrester Research, Inc., June, 2006
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70 64.0