february 26, 2002 dave heverling network vice president-northeast area wireless overview

February 26, 2002

Dave HeverlingNetwork Vice President-Northeast Area

Wireless Overview

Proprietary and Confidential Information of Verizon Wireless

NO NEED TO BE SCARED


This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For thosestatements, 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; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; 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 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 lastly, 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.

““Safe Harbor” StatementSafe Harbor” Statement


Wireless devices will be

the centerpiece of information

and services for customers…

anytime, anywhere.


Wireless Environment

• Economy

• Growth

• Consolidation

• Pricing

• Technology


• OUR CORPORATE CULTURE IS INFORMAL


Strategic Imperatives

Subscriber Growth

Revenue Growth

OCF Growth

Results-focused culture


Strong Fundamentals

Quality of ...• Subscriber base

• Cost structure

• Customer value proposition

• Profitability

• Network


Strong Fundamentals

Quality of Base• Digital subs

• Primarily contract

• Churn

• ARPU accretion


Strong Fundamentals

Quality of the Network

• Capex: $4B

• Highly efficient: cost & capacity

• 90% POPs digital

• Lead in provision of new products


Strong Fundamentals

Low Cost Structure• Merger integration

– Systems conversions– Procurement flexibility

• National Company– Branding– Standardization

• Distribution• Customer Service


Strong Fundamentals

Value Proposition for the Customer• Pricing

– National, local– Simplified

• Products– Voice– Data

• Loyalty


Cost of Roaming

3%

Handset2%

Billing2%

Call Quality30%

Customer Service20%

Corporate Capability

21%

Pricing Options22%

Customer Satisfaction Drivers

Source: 2001 JD Power Wireless Industry Study

We understand the key drivers of customer purchase decisions and satisfaction, especially among the high-end

segments.


America’s Choice Plan

• Launched February 1, 2002.

• Leverage VZW/Preferred network.

• Increase profitability thru reduction in Off-Net subsidies.

• Improve customer perception of VZW as “National Provider”.

America’s Choice

Access Minutes

$35 300

$45 400

$55 550

$75 900

$100 1,200

$150 2,000

$200 3,000


America’s Choice PlansKey Features

• Coverage across the expansive national America’s Choice footprint

• Domestic LD included when calling from the America’s Choice footprint

• National Mobile to Mobile option

• National Night and Weekend option


America’s Choice PlansRoam Indicator

The Roam Indicator light will indicate important pricing information to the customer as follows:

Roam Indicator Status

Banner Display Status Network Status Billing/Feature Status

OFF Verizon Wireless Network

VZW Network Home Airtime rates; Included LD; Features follow

ON- Flashing Extended Network VZW Extended Network

Home Airtime rates; Included LD; Features may follow

ON-Solid Roaming Roaming off VZW/extended network

$0.65 per minute; includes LD; Features do not follow


Effect of Aggressive Promotions

Digital Usage Hourly Growth

0

1 00,000

2 00,000

3 00,000

4 00,000

5 00,000

6 00,000

7 00,000

mid

-1am

2-3am

4-5am

6-7am

8-9am

10-1

1am

noon-1am

2-3pm

4-5pm

6-7pm

8-9pm

10-1

1pm

Ave

rag

e U

sag

e C

CS

Dec 2001 M-F

Dec 2001 Saturday

Jun 2001 M-F

Jun 2001 Saturday

Growth from June 01 to Dec 01 on

WEEKENDS for 4-5 pm is 10%

Growth from June 01 to Dec 01

on SATURDAY for 4-5 pm is 45%


Note: Spectrum Inventory is prior to 1.9 GHz Re-Auction and does not include Price Communications Wireless properties or managed, but not owned properties.

10 MHz

25 MHz

35 MHz

45 MHz

30 MHz

Nationwide Spectrum


Additional Capacity Opportunities

• 3G Implementation

• Cell Splitting

• NextWave Situation


• KOLANOS SCORES THE WINNING GOAL IN OT AS BC BEATS NORTH DAKOTA FOR THE 2001 NCAA HOCKEY CHAMPIONSHIP


Core Technology: CDMA / IS-41

Best Network as measured by ourselves, our customers, and third parties

Service Margin

Network Reach

Digital Network

S.O.E.

Drivers ofSuccess

Goal

Verizon’s Differentiator


Best Network - Infrastructure

>17,000 Cells>145 MSCs

85% licensed POPs covered

AMPS, CDMA, CDPD, CDMA data

800 MHz, 1900 MHz

Lucent, Nortel, Motorola

2W SMS


Technology Evolution

IS – 95(DIGITAL/CDMA)

CDMA 2000 - 1X(1XRTT)

PRE 1997 2002

• Voice (6-10X analog capacity)• 14.4Kbs Circuit Switched Data

• Voice (2X IS-95 capacity)•40-60 Kbs Packet Data• Backward Compatible to IS-95

Why 1XRTT?

• Provides greater voice capacity

• Enables higher speed data throughput

• Wholesale infrastructure change-out not required

• Positions us well for future technology decisions

ANALOG

SINCE THEN

• Voice


Technology Evolution

1.25 MHz CDMA

5.0 MHz CDMA

Other

Technologies

IS-95 1XRTT

EDGE

GPRS

1Xev

WCDMA

GSM

TDMA

2002 2003 2004

Options for the future


Peak Data Rates by Technology

2000 2001 2002

CDPD

IS-95A

1XRTT

1Xev

19.2 kb/s

14.4kb/s

144 kb/s

2.4 Mb/s

GPRS 56 kb/s

EDGE

115 kb/s

WCDMA

480 kb/s

384 kb/s 2.0 Mb/s

307 kb/s


Lead in Provision of New Products and Services

PSTNCellsTDM

BSC

PDSN

Core IP Network

IP

Public Internet

Fixed Wireless802.3802.11xDSLCable Modem Enterprise

Network

VPN

Call Management Servers

Application Servers

Packet TDM

Develop Core IP Network

MSC


Lead in Provision of New Products and Services

Core IP

Network

Circuit S

witched

Network

Messaging SMS, IM, Voice Portal, Unified Msg, Corp MWI

Telematics Voice, vehicle diagnostics, traveldirections, map updates

Int’l Roaming CDMA / GSM Inter-operation

Location Svcs Where am I, Advertising by locationFind Me, Location specific 411

IOTA Basic OTA, PRL updates, phone diagnosticssoftware fixes and upgrades, revenue downloads

WIN Pre-paid, CTX features, Group Calling

VPN Corporate connectivity

Compression 4 x data rates

Deploy Application Specific Platforms / Enablers


2002 Products and Services

• Express network

– 3G voice and data services

– 144 kbps maximum burst rate

– 40-60 kbps average throughput

– Most major US markets covered by EOY 2002

• BREW

– Binary Runtime Environment for Wireless

– Supports downloadable applications to handsets

• Games

• Ringtones

• Vertical market applications


• vText – Uses the SMS service platform– Web based system for SMS delivery– Information content delivery– Provides revenue sharing opportunities for content providers– Calendar and notifications– SMS broadcast

• Two way SMS – User friendly easy to use– Send and receive short messages to handsets– Current 160 character message– 200 character length later this year

• Mobile Web – Service based on the Wireless Access Protocol (WAP)– Interactive– Supported in all handsets

2002 Products and Services


• Mobile Web – Service based on the Wireless Access Protocol

(WAP)– Interactive– Supported in all handsets


Wireless Internet Via PDA


Summary

•Much is changing in the wireless industry•Customers continue to be more demanding•Network Quality is a Major Differentiator•Data will be an increasingly important piece of the Wireless Pie

february 26, 2002 dave heverling network vice president-northeast area wireless overview

Documents

ability of verizon wireless

centerpiece of information

informal slide

scared slide

regulatory conditions

forwardlooking statements

adverse changes

regulatory agencies