Verizon Communications : Chairman and Chief Executive Officer - Shareholder Information
03/31/2021 | 05:46pm EDT
Chairman and Chief Executive Officer
We won't soon forget 2020. Together, we faced a global pandemic, an economic crisis, political and social unrest and a deepening climate crisis. The word "unprecedented" became a part of our daily conversation. The ability to pivot became the hallmark of resilience.
Despite these challenges, we will remember 2020 as a year when we demonstrated
the strength of our company, the commitment of our team and the network leadership that is the foundation of everything we do.
We will remember 2020 as a year
when we demonstrated the strength of
our company the commitment of our team and the network leadership that is the foundation of everything we do.
2020 was not a year that could be reduced to a bottom line. The COVID-19 pandemic has hit hard in the communities we serve and continues to do so. It has brought sorrow, loss and uncertainty to many within our own organization. Yet, Verizon had another strong year, both financially and operationally.
On an adjusted basis (non-GAAP, and excluding special items), adjusted earnings per share (EPS) was $4.90, compared with 2019 adjusted EPS of $4.81. Cash flow from operations totaled $41.8 billion, a 16.8 percent increase from 2019.
Our V Teamers have met this challenge
with skill and dedication. They were the essential workers on the frontlines, carrying out field service calls under conditions of unique uncertainty. They were the backbone of our network, enabling frontline workers, healthcare providers and homebound families to remain connected. Through this challenge, Verizon supported small businesses whose incomes dried up in the economic downturn. We have never shied away from responding to a crisis, and this past year was no exception. We responded as we always do, with our four stakeholders in mind: our customers, our employees, our shareholders and society.
Verizon was recognized as a leader in "employers' responses to the pandemic" for the example we set and the transparency with which we communicated to our employees, demonstrating how our company takes care of our own. But it's also a tribute to how our colleagues take care of our customers and our communities.
Those customers and those communities needed us like never before. As the U.S.
and many other nations shut down in the spring, our network handled an immense amount
of traffic. During a time when we needed to be socially distant, our networks made sure people felt connected. During the first 90 days of the COVID-19 crisis in the U.S., our network supported more than 58 billion calls, 519 billion text messages and 10.3 trillion megabytes
Our network handled all of this traffic without any disruptions, proof positive of the quality of our infrastructure and our entire V Team. Not only that-we developed bigger and better options for customers now facing the cancellation of live events.
We introduced our new Mix & Match plan, which gives consumers unparalleled ability to choose services and experience packages that work for them and their unique personal and family needs. We launched a new
Yahoo Sports integrated feature, Watch Together, that gives viewers the ability to "co-watch"
and interact over entertainment events ranging from music to sports, with the NFL as our initial launch partner.
We also extended our agreement with
The Walt Disney Company to include Disney+, Hulu and ESPN+ in select wireless plans
and announced a collaboration with Discovery, Inc., to debut Discovery+, the largest-ever content offering of any new streaming service.
During a time when we needed to be socially distant, our networks made sure people felt connected. During the first 90 days
of the COVID-19 crisis in the U.S., our network supported more than 58 billion calls, 519 billion text messages and
10.3 trillion megabytes of data.
Even as our network was carrying more traffic than ever before, we continued to invest in its growth. As I mentioned at the Consumer Electronics Show in January of this year, 2020 in many ways marked the arrival of 5G as
a true game-changer for the way consumers learn, work, play and enjoy entertainment.
By the end of 2020, we had 2,700 cities on
our Nationwide 5G network, serving 230 million people. In addition, we had introduced 5G Ultra Wideband to more than 60 metro areas across the U.S.-expansion made possible by our growth in the millimeter-wave technology at the heart of Ultra Wideband.
In the fall, we announced millimeter-wave network deals with two of our leading network partners, Corning and Samsung, delivering 5G radio nodes for retail and other venue deployments.
More recently, we've entered into an agreement with Crown Castle to lease 15,000 small cells to support both millimeter-wave Ultra Wideband and 5G Nationwide.
And, of course, we also expanded access to
5G Home fixed wireless and teamed up with Apple for the arrival of 5G on iPhone 12 models-the moment when "5G got real" for many customers.
It was a year in which we found new ways to derive revenue from the best telecommunications network on Earth. You can see this strategy
at work in our mobile virtual network operator agreements with Comcast and Charter, as well as in our Demand Side Platform (DSP), where emerging media formats such as Digital Out of Home and Connected TV (CTV) continue to flourish. For example, CTV grew by an amazing 284 percent year-over-year in Q3.
The market is definitely taking notice of Verizon's DSP dynamism. Microsoft migrated its display-ad inventory onto our supply-side platform, marking one of the largest and fastest tech migrations our industry has ever seen.
This is all just part of a broader trend: Verizon
has emerged as the partner of choice for business and other enterprise customers. Since the start of Verizon 2.0 in 2019, we have continuously grown wireless subscribers and are the leader
in every market we serve.
Then there's mobile-edge compute, or MEC- one of the most exciting developments in information technology. To put it simply, MEC is about the provision of cloud compute and storage services at the edge of the network itself, allowing innovators to deploy parts of their applications that require high bandwidth or ultra low latency at the edge of the 5G network.
The potential applications are mind-blowing, for businesses and end-consumers alike.
In 2020, Verizon became the first company in the world to launch MEC, in partnership with Amazon Web Services. We also launched private MEC with Azure, teaming with Microsoft. In addition, we announced 5G and MEC co-innovation collaborations with IBM, SAP and Deloitte
These are incredible new markets for us, but they aren't the only ones where we made a splash in 2020. The proposed TracFone acquisition* expands our presence in prepaid and value services. The purchase of BlueJeans gave us a strong foothold in the video-conference and event space, at a time when more and more people found themselves having to work and attend school online.
We're well-positioned and optimistic about the future. This momentum has continued into early 2021, as we continue to protect and enable our employees, serve our customers and drive progress. One very powerful example was the recent C-Band auction, the largest spectrum auction the telecom industry has ever seen. It was a once-in-a-lifetime opportunity to add
game-changingamount of high-quality spectrum to our portfolio -and I am thrilled with what we were able to accomplish. We succeeded in more than doubling our holdings in the vital mid-band spectrum, gaining licenses that will cover the entire contiguous 48 states.
*Subject to regulatory approval
Our disciplined strategy and strong balance sheet enabled us to be aggressive and we were able
to acquire the best spectrum available in this auction.
Our disciplined strategy and strong balance sheet enabled us to be aggressive and we were able to acquire the best spectrum available in this auction. That investment- combined with our other network holdings- makes our spectrum position the strongest in the industry and positions us superbly for the next stage of growth and beyond.
In many ways, this is a continuation of
the strategic direction that we've been taking ever since the rollout of Verizon 2.0 in 2019, when we reorganized the company into three customer-facing operating businesses to maximize the value of our leadership in the transformational technology of 5G.
The C-Band investment takes that value maximization to another level. The new spectrum holdings ensure that Verizon is the carrier best positioned to deploy the fastest, most powerful 5G experience to the most people-or as we call it, "5G built right."
Ever since we began building 5G, we have had
a first-mover advantage. We are more than a year ahead in building and selling millimeter-wave with our 5G Ultra Wideband service and we are still the only company with commercial MEC. Now we intend to extend our lead by accelerating our deployment of C-Band. We will increase our capital spending by $10 billion-over and above our annual ongoing capital investment- during the next three years to put this spectrum into use as quickly as possible.
Verizon Communications Inc. published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2021 21:45:06 UTC.