Verizon FiOS - Fact Sheet

Verizon FiOS services continue to grow: all-fiber platform powers industry-leading video and Internet innovations. Verizon FiOS TV now serves 2.7 million homes; FiOS Internet serves 3.3 million subs; 3Q ‘09 sales up 191,000 for TV, 198,000 for Internet; ambitious all-fiber network now passes 14.5 million homes and businesses.

Overall view

• As of the end of the third quarter, Verizon’s fiber-to-the-home network passed 14.5 million premises, or approximately more than 45 percent of the households in Verizon’s wireline network footprint.  This is on track to meet the year-end target of 15 million premises.  Verizon expects to continue the FiOS buildout through 2010.

3Q'09 Marketing developments

• Over the past year, Verizon has added about 1.1 million FiOS TV customers, and has expanded the availability of FiOS triple-play bundles of voice, Internet and TV service by 33 percent. The bundles are now available to 10.9 million of the 32 million households in the company’s landline footprint, up 8.2 million from a year ago.
• Verizon broke new ground with the opening of its Widgets Bazaar applications marketplace, offering on-screen, Internet-based tools that integrated the TV viewing experience with relevant Web content.  Among the most popular are Facebook, Twitter, KODAK Gallery, and ESPN Fantasy Football introduced in the quarter.
• Launched the FiOS TV Widget Bazaar applications marketplace based on an open development platform that delivers a variety of interactive options from Verizon and its partners.  Current free applications in Widget Bazaar include widgets that provide instant, on-screen access to Facebook, Twitter, KODAK Gallery, WeatherBug, ESPN Fantasy Football, and other entertainment and social TV applications.
• Launched Internet Video Service, which allows FiOS TV DVR users to search for and enjoy on their TV screens videos from online sites blip.tv, Dailymotion and Veoh.
• Introduced The NFL RedZone channel and a corresponding FiOS TV Widget, giving viewers instant access to the hottest NFL action under way every Sunday.
• Added NBA LEAGUE PASS and NBA TV to the FiOS TV channel lineup, providing basketball fans with access to a full season of the NBA through live games and original programming. A corresponding Widget gives instant access to league stats, news and scores.
• Added four new HD channels – AMC, WE TV, IFC and Fuse, bringing the total number of HD channels in every market to 123 or more.
• Added new video-on-demand content from HBO, Cinemax, 20th Century Fox, AMC, Home Shopping Network, Disney Family Movies, Univision, Cinetic Film Buff, American Pop Classics and Dew Tour to the VOD lineup; today, with more than 18,000 titles in every market, FiOS TV well surpasses cable TV VOD offerings.
• Launched a beta trial of the industry’s TV Everywhere initiative to provide subscription TV content to subscribers online.
• Launched free Wi-Fi service for qualifying broadband customers so they can connect when they are outside their homes and near thousands of hot spots. Service automatically notifies customers when they are in range of a hot spot and takes them to a logon page.
• Launched the Verizon FiOS In-Home Agent, a dynamic tool that helps customers with Internet and TV setups, troubleshoots connection problems, and helps with managing e-mail accounts, among other self-help features, eliminating the need to call a representative for help. Announced that a version will be created for High Speed Internet customers, as well.
• Began offering on-screen quick codes for immediate remedies to TV problems. Customers get a code to enter when calling toll-free, which triggers an instant fix or allows instant sign-up for pay channels.
• Began providing Mac compatibility for the Internet Security Suite as well as online backup and sharing. Recently announced Mac compatibility for whole-home-network Media Manager tool that streams personal photos and music stored on computers to the customer’s TV set.
• Took top honors in surveys conducted by PC Magazine and J.D. Power and Associates, demonstrating the perceived difference in the quality of FiOS services.
• Marketing agreements and sales to multidwelling units continue to grow, with more than 1.3 million units open for sale.

Product information

• FiOS Internet service with download speeds of up to 50 Mbps (megabits per second) and upload speeds of up to 20 Mbps is available to all customers in all markets, making Verizon the first and only major provider offering service at that level across its service area.  This compares with the limited initial deployment to date of advertised 50 Mbps speeds by some cable TV companies, which use emerging DOCSIS 3.0 technology that exchanges TV channels for increased Internet speed.  Because of the capacity of its fiber-optic network, Verizon does not need to do this.
  
• Consumers can choose from three FiOS Internet downstream/upstream options: 15 Mbps/5 Mbps, 25 Mbps/15 Mbps and 50 Mbps/20 Mbps. Services are available bundled together with FiOS TV and reliable Verizon calling services. In New York City, on Long Island and in other New York City suburbs, the entry-level connection speed is 25/15 Mbps, and a mid-tier, bundle-only offering of 35/20 Mbps is available.
  
• FiOS TV customers benefit from the most advanced DVR technology available.  Verizon’s Home Media DVR subscribers can record programming in standard or high definition that can be watched on up to six other TV sets in the home.  This also includes simultaneously viewing up to three separately recorded programs on different TV sets, and the ability to pause recorded programming on one set and continue watching it on another.  FiOS TV’s Home Media DVR is bundled with Media Manager, a feature that allows customers to use FiOS TV to access and view PC-based personal photos, videos and music – as well as search and enjoy online videos from blip.tv, Dailymotion and Veoh.
• Verizon is currently building its all-fiber-optic network using gigabit passive optical network (GPON) technology, the second generation of optical networking equipment.

Additional Performance Factors

• As of September 30, 2009, total wireline broadband connections were 9.2 million, a net increase of 63,000 over 2Q ‘09 and 8.5 percent more than as of September 30, 2008.
• Broadband and video revenues from consumer customers, including High Speed Internet revenues, totaled more than $1.4 billion, representing year-over-year quarterly growth of 30.7 percent.