Verizon Reports Sustained Customer Growth in 4Q

Verizon Reports Sustained Customer Growth and Migration to 4G in 4Q, With Margins Expected to Return to Historical Levels in 1Q NEW YORK, Jan. 6, 2015 -- Verizon Communications Inc. (NYSE, Nasdaq: VZ)announced today that wireless customer growth remained strong throughoutfourth-quarter 2014. Verizon reported sustained, strong customer demand for 4G smartphones andtablets, as the company drove retail postpaid gross additions that were higherboth sequentially and year over year. Customer phone upgrades approached 10percent, higher than the 9.5 percent previously expected, as upgrade volumestrended higher as December progressed. Verizon expects first-quarter 2015 wireless margins to return to historicallevels. As previously announced, the company will report that thefourth-quarter impacts of strong customer volumes, together with itspromotional offers, put short-term pressure on its wireless segment EBITDA andEBITDA service margin (non-GAAP, based on earnings before interest, taxes,depreciation and amortization). In fourth-quarter 2014, Verizon maintained a disciplined market approachfocused on high-quality customers. Churn was elevated both sequentially andyear over year as a result of the highly competitive quarter. The company alsofocused on accelerating upgrades of high-quality customers to 4G smartphones onits More Everything shared data plans on the nation's most reliable 4G LTEwireless network. In wireline, the company reiterated its commitment to achieve full-yearexpansion of the wireline segment EBITDA margin (non-GAAP). 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.

CONTACT: Bob Varettoni, +1-908-559-6388, [email protected]