SDN, NFV, and Mobile Edge Enabling Future Carrier NetworksGagan Puranik

January 31, 2016

“Safe Harbor” Statement

2Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

NOTE: This presentation 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 forforward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The followingimportant factors could affect future results and could cause those results to differ materially from those expressed inthe forward-looking statements: adverse conditions in the U.S. and international economies; competition in ourmarkets; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/oroperational impact; material changes in available technology; any disruption of our key suppliers’ provisioning ofproducts or services; significant increases in benefit plan costs or lower investment returns on plan assets; breaches ofnetwork or information technology security, natural disasters or terrorist attacks or existing or future litigation andany resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratingsafforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit marketsimpacting the cost, including interest rates, and/or availability of financing; any changes in the regulatoryenvironments in which we operate, including any increase in restrictions on our ability to operate our networks; thetiming, scope and financial impact of our deployment of broadband technology; changes in our accountingassumptions that regulatory agencies, including the SEC, may require or that result from changes in the accountingrules or their application, which could result in an impact on earnings; our ability to complete acquisitions anddispositions; and the inability to implement our business strategies.

Throughout this presentation, financial information shown excludes, where noted, non-operational or one-time items.As required by SEC rules, we have provided a reconciliation of the non-GAAP financial measures included in thispresentation to the most directly comparable GAAP measures in materials on our website atwww.verizon.com/investor.

Evolving Verizon’s Solutions

INTERNETSERVICES

INTERACTIVEENTERTAINMENT

INTERNETOF THINGSDIGITAL MEDIA

GLOBALBROADBAND NETWORK

• Serving 99% of the Fortune 500 customers

• Global Broadband network serves 2,700 cities in 150+ countries

• Largest 4G LTE Network available

• 112.1 M retail connections

• Nation’s largest all-fiber Network and the first commercial 100G deployment

• 5.8 M Fios video customers

Fortune 500 Rank: #15

2015 Revenues: $131.6B

2014 Capital Investment: $17B

VERIZON

3Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Verizon Growth

Usage Growth Outpacing Today’s Networking Efficiency Innovation

WIRELESSTotal LTE Traffic

GLOBALTotal Global Public IP Traffic

FiosTotal FIOS Internet Traffic

YOY % GROWTH*110%

YOY % GROWTH*44%

YOY % GROWTH*57%

*Figures represent 1Q15 YOY growth

4Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

5

1970 1990 1995 2000 2005 2010 2015 2020

Pre-InternetEra

BrowsersEra

SearchEra

EarlyContent Era

eCommerceEra

PersonalEra

EverythingEra

Connectivity Era

Latency

6Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

High Frequency Trading (HFT) <1

VR Gaming

Cloud assisted car driving

AR-Non gaming

Hi-res Cloud Gaming (FPS)

Fios On Demand& Go90

Max tolerable network delay Max expected application delay forprocessing/buffering/display, etc.

Webpage 1st fold load

IM Chat

Latency Requirements in Milliseconds

Only Feasible inEdge Cloud

Centralized CloudImplementation Viable

5G Vision

(LOW POWER) WIDE AREA CROWD ULTRA-DENSE OUTDOOR

A trillion of devices with different needs GB transferred in an instant Mission-critical wireless control and automation

<1 msradio latency

Ultrareliability

>10 Gbpspeak data rates

10-100x more devices

M2Multra low cost

10 yearson battery

100 Mbpswhenever needed

4G

5G

5G will enable very diverse use cases with extreme range of requirements

10 000x more traffic

7Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Future Technologies

8Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Purposeful Migration & Distributing Network

VIRTUALIZATION SOFTWARE DEFINEDNETWORKING

Edge Router

EXISTING (WITH AUTOMATION)

Router

Control Plane Software

Forwarding Box

SDN Controller

Data Plane

OS

Router

x86 COTS Hardware

Hypervisor

Virtual Machine

KEY DRIVERS

APP OS

Vend

or S

peci

fic

Har

dwar

e

DynamicService Offerings

Capital Intensity

LifecycleManagement

HIGHEST PERFORMANCE

LOWEST COST PER BIT

MOST PERSONALIZED

EDGECOMPUTING

SCALERELIABILITY

9Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

High-Level Architecture

NFV – Network Function VirtualizationNFVI – NFV InfrastructureNFVO – NFV OrchestrationVIM – Virtualization Infrastructure ManagerVNF – Virtual Network FunctionsPNF – Physical Network FunctionsVNFM – VNF Manager

VNFs

NFVI

SDN Controllers

End-to-End Orchestration NFVO

OSS/BSS

EMS

PNFs

Catalogs/Repositories

VNFM

VIM

NFVService

Assurance

Service Orchestration

Portals

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 10

Cultural Shift

DevOps

Linux OS

Hypervisor, Container...

Change Management

Agile Processes

Orchestration

Enhanced Customer

Control

NFV/SDN

Generic

Compute/Storage

Re-envision, Retool, Retrain

11Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Verizon’s ApproachPartnerships & POCs

Architecture Council

Open Standards & Open Source

Create a future network that operates at the pace of software.

12Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

http://innovation.verizon.com/

13Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

India Innovation Lab

14Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

VNFs

NFVI

SDN Controllers

End-to-End Orchestration NFVO

OSS/BSS

EMS

PNFs

Catalogs/Repositories

VNFM

VIM

NFVService

Assurance

Service Orchestration

Portals

Thank you.

Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 15