Verizon Announces Strong Operating Results For Fourth Quarter and 2000

NEW YORK - Verizon Communications Inc. (NYSE:VZ) met or exceeded key operating targets for fourth quarter and full-year 2000, Verizon President and Co-CEO Ivan Seidenberg said today at Salomon Smith Barney's Eleventh Annual Entertainment, Media and Telecommunications Conference in Scottsdale, Ariz.

Verizon will announce its fourth quarter and full-year financial results for 2000 on Feb. 1.

EDITOR'S NOTE: Seidenberg's presentation slides can be viewed at www.verizon.com/investor.)

In Verizon's major growth businesses:

  • Verizon ended the year with an estimated 540,000 DSL (digital subscriber line) subscribers, substantially exceeding its year-end target of 500,000.

  • Verizon ended the year with an estimated 1.4 million long-distance customers in New York, winning a 20 percent share of the state's residential long-distance market in only one year. Verizon can offer long-distance service over approximately half of its U.S. access lines, and the company ended the year with nearly 5 million long-distance customers nationwide.

  • As announced last week, Verizon Wireless had a net gain of approximately 1.2 million new customers in the quarter and ended the year with approximately 27.5 million wireless customers, by far the most in the industry.

  • Data revenues for 2000 were an estimated $6.2 billion, resulting in data revenue growth of 30 percent or more for the 12th consecutive quarter and fourth consecutive year.

"We have an expanding position in the growth markets of the future -- wireless, data, broadband, long distance - and we're executing extremely well in these areas," Seidenberg said.
Seidenberg also made the following points in his remarks:

  • Verizon achieved an estimated $535 million in annualized merger-related expense savings in 2000 following the formation of Verizon Wireless and the Bell Atlantic-GTE merger. One of Verizon's top priorities for 2001 is to continue toward its goal of $2 billion in annual expense synergies by 2003.

  • The impact on earnings of the current wireless auctions has been factored into Verizon's previous earnings guidance.

  • Verizon continues to expect that it will file for approval to offer long distance in all of the former Bell Atlantic states by mid-2002. Verizon plans to resubmit its application to enter the Massachusetts market shortly.

  • Verizon plans to make a filing today with the Pennsylvania Public Utility Commission that will begin the PUC's 100-day review of the company's proposed application to the FCC for approval to provide long distance service in the state. The PUC will use the 100-day period to review the evidence that Verizon has opened its network to competitors and determine whether to support the company's application to the Federal Communications Commission, which Verizon plans to file after this 100-day period.

Seidenberg also affirmed Verizon's confidence in its earnings targets, noting that the company is using conservative assumptions about the 2001 economy in its planning. "Our growth engines - data, DSL, long distance, wireless - are strong enough to accelerate our overall growth rate, even in the face of an economic downturn," he said.

Verizon Communications

Verizon Communications Inc. (NYSE:VZ), formed by the merger of Bell Atlantic and GTE, is one of the world's leading providers of communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States, with more than 101 million access line equivalents and more than 26 million wireless customers. A Fortune 10 company with more than 260,000 employees and approximately $60 billion in 1999 revenues, Verizon's global presence extends to 40 countries in the Americas, Europe, Asia and the Pacific. For more information on Verizon, visit www.verizon.com .


NOTE: This news release is being issued concurrently with the presentation referred to in the text. This news release contains statements about expected future events and financial results that are forward-looking 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: materially adverse changes in economic conditions in the markets served by us or by companies in which we have substantial investments; material changes in available technology; the final outcome of federal, state, and local regulatory initiatives and proceedings, including arbitration proceedings, and judicial review of those initiatives and proceedings, pertaining to, among other matters, the terms of interconnection, access charges, universal service, and unbundled network element and resale rates; the extent, timing, success, and overall effects of competition from others in the local telephone and toll service markets; the timing and profitability of our entry into the in-region long distance market; our ability to combine former Bell Atlantic and GTE operations, satisfy regulatory conditions and obtain revenue enhancements and cost savings following the merger; the profitability of our entry into the nationwide broadband access market; the ability of Verizon Wireless to combine operations and obtain revenue enhancements and cost savings; our ability to convert our ownership interest in Genuity Inc. into a controlling interest consistent with regulatory conditions, and Genuity's ensuing profitability; and our accounting assumptions are subject to review by regulatory agencies, including the SEC, and changes in the assumptions as required by those agencies or any changes in the accounting rules or their application could result in an impact on earnings.