The Ascent of Verizon From Telephone Service to Communications Giant

Bell Atlantic and GTE joined forces in 2000 to form Verizon Communications, an immense global communications giant with the stock symbol VZ standing for veritas and horizon.

History at this institution abounds with examples demonstrating its “Spirit of Service.” A prime example was their outstanding restoration efforts following a fire at their Second Avenue headquarters in 1975.

The Birth of the Company

Verizon Communications can trace its history back to 1984 with the breakup of AT&T. At that time, AT&T controlled local telephone lines in 40 states; after splitting into several “baby Bells,” such as Bell Atlantic which covered much of Northeast. Following their merger in 1997 and 2000 respectively with GTE and Nynex respectively – becoming Verizon Communications. Their name represents their expansive coverage and long-term vision; veritas means truth in Latin.

By early 2004, Verizon was on course to dominate the telecommunications industry with its local phone, mobile phone, broadband Internet services and cable company offerings. Verizon took steps toward this end by divesting some wireline business while simultaneously purchasing Alltel Wireless (wireless/fiber optic) and CyberTrust (IT services firm).

Verizon’s massive network of cellular towers and antennas covers the country with high-speed connectivity, giving its customers access to streaming video on smartphones or making important business calls or simply text messaging with ease.

Verizon continues to explore opportunities for innovation within its wireless and broadband businesses. Verizon was the first US carrier to introduce large-scale 4G LTE network coverage since 2010, expanding it continuously over three years – becoming one of the largest 4G providers worldwide with fast data speeds and consistent coverage.

Verizon has leveraged its fiber-optic network to expand into the broadband market with various entertainment and business services, such as its high-speed Fios service that can offer up to one gigabit of bandwidth per household and bundles that combine broadband access with traditional phone, mobile phone, video services, etc.

Verizon is known for its culture of service. This can be seen through how employees are treated and the care taken with every aspect of its business operations, from employee treatment and caregiving to community involvement and philanthropic efforts including creating the Verizon Foundation to promote technology in schools.

The Company’s Early Years

Verizon’s story is one of epic proportions, spanning centuries of telecom history. Now known as Verizon Global Services Network (VGSN), its global coverage and services have drastically transformed our world – but all began when Alexander Graham Bell co-founded Bell Telephone Company back in 1885 with an aim of providing excellence through service provision and rapid expansion.

AT&T (ATT 0.46%) had grown into a powerful telecom giant by the end of the decade, dominating both domestic and international telecommunications markets before being forced by the Department of Justice to break it up into regional companies known as Baby Bells. One such regional company, Bell Atlantic, later merged with independent telephone company GTE in 2000 to form Verizon Communications; an industry giant at first only competing against AT&T but then offering consumer markets as well.

Merging two Bell entities was an ambitious endeavor that required all the strengths of both firms to succeed. Verizon appointed co-CEOs Charles Lee and Ivan Seidenberg who both had extensive experience bringing separate companies together into bundled offerings; Lee provided expertise in wireless, Internet access, local telephone operations while Seidenberg focused on cultivating future business opportunities.

Verizon quickly established itself in the telecommunications sector. By 2004, it had expanded into providing next-generation broadband services such as EVDO mobile wireless and FiOS fiber-optic, with its latter boasting more than one million households covered and providing high-speed internet access that rivaled cable TV providers.

As part of its efforts, the firm launched an ultrafast 5G mobile network that offered mind-boggling speeds and reduced latency data transmissions, revolutionizing multiple industries from autonomous vehicle powering to virtual reality experiences. Customers were hugely pleased by this endeavour – evidenced by their outstanding record in recovering services after natural disasters or terrorist attacks.

The Company’s Mid-Term Plans

Verizon provides the infrastructure required to stream videos on smartphones, make calls or send text messages through its network of cellular towers, antennae and data centres that serves over 200 million people with high-speed internet and voice connectivity services.

So it is one of the most potent modern technological tools at our disposal. Yet Verizon faces challenges as it struggles to meet demand for new services, trailing behind industry leader AT&T in terms of mobile-phone subscribers.

As a result, Verizon is shifting its strategy and shifting costs toward wireless services and cutting expenses while simultaneously exiting some wireline businesses.

FiOS will no longer offer traditional home phone service or DSL/Digital Subscriber Lines and will discontinue cable broadband offerings. Instead, the company will focus on its wireless offerings branded FiOS.

Long term, this will benefit consumers and investors; however, in the short term it could prove challenging for employees. Verizon is making changes to its retirement and health-care plans that will save both parties money; in exchange, workers must decide between keeping pension benefits or receiving matching contributions in the 401(k).

Sampath’s goal for Verizon is not radical transformation, but rather getting back to its core strengths and priorities. He wants the company to get back on track with customers and focus on expanding its network, and so he named his campaign to restore customer growth “Project Trenton”, in reference to a victory that altered American history nearly 200 years earlier.

He is taking an aggressive, hands-on approach to running his business and regularly visits retail stores to check on staff progress reports and obtain feedback on what’s working or not working within and outside of his organization. Additionally, he maintains a list of 30 people inside and outside his company whom he talks with regularly, trusting them to be candid with regards to what’s working or not; believing this approach gives a true picture of what’s going on with their customers and business operations.

The Company’s Future

Verizon may be experiencing slower growth, but its leadership remains focused on innovation. They continue to expand their ultra-fast 5G network which promises incredible speeds and lower latency that could transform industries; as well as investing in its fiber network to provide business customers with high speed connectivity.

Verizon continues to expand its C-band spectrum for improved speed and capacity, having acquired an average of 160 MHz of spectrum across major markets so far; that number should increase when licenses expire this year and it can bid for more spectrum at auction. Furthermore, they continue their deployment of millimeter wave spectrum, which offers exponential capacity in dense populations such as stadiums, airports, major metro areas or offices.

T-Mobile US Inc has taken steps to streamline its billing system and offer customers free unlimited data plans, in an attempt to compete against other providers such as T-Mobile which have seen rapid market share gains over their larger rivals.

Even after taking these steps, the company still faces hurdles. Consumer wireless sales have been disappointing and revenue from 5G smartphones unimpressive; consumers upgrading to unlimited data plans hasn’t offset a decrease in voice service sales; and competition from AT&T and T-Mobile makes attracting postpaid wireless subscribers difficult.

Long-term success of Verizon will depend on its ability to develop innovative technologies, anticipate customers’ evolving needs and meet them reliably. By expanding its 5G network, investing in fiber infrastructure and expanding mmWave spectrum, Verizon will remain competitive against other communications giants as they vie for new subscribers in an ever-shrinking pool – this ensures its legacy as a leader in communication technology is preserved while it keeps fulfilling on its promise of reliability and limitless possibilities for its customers.