Verizon Reports Strong Wireless Customer Growth in Q4

Verizon Reports Strong Wireless Customer Growth and 4G Device Adoption in Fourth Quarter NEW YORK, Dec. 8, 2014 -- Verizon Communications Inc. (NYSE, Nasdaq: VZ)announced today that it continues to see strong momentum for wireless customergrowth in the fourth-quarter 2014. The company reported very strong customer demand for 4G smartphones and tabletson its More Everything shared data plans on the nation's most reliable wirelessnetwork in the fourth quarter to date. Verizon is driving retail postpaid gross additions that are higher bothsequentially and year over year. New device launches are driving significantcustomer phone upgrades. These are on pace to total as much as 9.5 percent ofthe postpaid customer base by the end of the quarter. Approximately three out of four upgrades were strategic or high-quality -meaning they were from a basic phone or a 3G smartphone or a high-valuecustomer. The percentage of customers choosing the Verizon Edgeequipment-installment plan option so far in fourth-quarter 2014 is tracking to24 percent, or double the rate of third-quarter 2014, which was approximately12 percent of total phone activations. As the company is accelerating the upgrades of high-quality customers to 4G,total retail postpaid disconnects are trending higher both sequentially andyear over year in this highly competitive and promotion-filled fourth quarter. The company expects that the fourth-quarter impacts of its promotional offers,together with the strong customer volumes this quarter, will put short-termpressure on its wireless segment EBITDA and EBITDA service margin (non-GAAP,based on earnings before interest, taxes, depreciation and amortization) aswell as its consolidated EBITDA margin (non-GAAP) and earnings per share. In wireline, FiOS continues to drive consumer-revenue growth, while globalenterprise and wholesale growth remain under both secular and macro-economicpressure. The company reiterated that it remains on track to achieve full-yearexpansion of the wireline segment EBITDA margin (non-GAAP). The company also reiterated that capital spending for 2014 is estimated to bearound $17 billion. Verizon will report fourth-quarter 2014 results on Jan. 22. Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is aglobal leader in delivering broadband and other wireless and wirelinecommunications services to consumer, business, government and wholesalecustomers. Verizon Wireless operates America's most reliable wireless network,with more than 106 million retail connections nationwide. Verizon also providesconverged communications, information and entertainment services over America'smost advanced fiber-optic network, and delivers integrated business solutionsto customers in more than 150 countries. A Dow 30 company with more than $120billion in 2013 revenues, Verizon employs a diverse workforce of 178,500. Formore information, visit www.verizon.com/news/. VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches andbiographies, media contacts and other information are available at Verizon'sonline News Center at www.verizon.com/news/. The news releases are availablethrough an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/. Forward-Looking Statements In this communication we have made forward-looking statements. These statementsare based on our estimates and assumptions and are subject to risks anduncertainties. Forward-looking statements include the information concerningour possible or assumed future results of operations. Forward-lookingstatements also include those preceded or followed by the words "anticipates,""believes," "estimates," "hopes" or similar expressions. For those statements,we claim the protection of the safe harbor for forward-looking statementscontained in the Private Securities Litigation Reform Act of 1995. Thefollowing important factors, along with those discussed in our filings with theSecurities and Exchange Commission (the "SEC"), could affect future results andcould cause those results to differ materially from those expressed in theforward-looking statements: the ability to realize the expected benefits of ourtransaction with Vodafone in the timeframe expected or at all; an adversechange in the ratings afforded our debt securities by nationally accreditedratings organizations or adverse conditions in the credit markets affecting thecost, including interest rates, and/or availability of further financing;significantly increased levels of indebtedness as a result of the Vodafonetransaction; changes in tax laws or treaties, or in their interpretation;adverse conditions in the U.S. and international economies; material adversechanges in labor matters, including labor negotiations, and any resultingfinancial and/or operational impact; material changes in technology ortechnology substitution; disruption of our key suppliers' provisioning ofproducts or services; changes in the regulatory environment in which weoperate, including any increase in restrictions on our ability to operate ournetworks; breaches of network or information technology security, naturaldisasters, terrorist attacks or acts of war or significant litigation and anyresulting financial impact not covered by insurance; the effects of competitionin the markets in which we operate; changes in accounting assumptions thatregulatory agencies, including the SEC, may require or that result from changesin the accounting rules or their application, which could result in an impacton earnings; significant increases in benefit plan costs or lower investmentreturns on plan assets; and the inability to implement our business strategies. SOURCE Verizon Communications Inc.

CONTACT: Bob Varettoni, 908-559-6388, [email protected]