MMS Workshop

CDMA 2004 Latin America Regional Conference

Gerry FlynnMay 28, 2004

“Safe Harbor” StatementsVerizon Communications, Verizon Wireless

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, Verizon Communications and Verizon Wireless claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. With respect to Verizon Communications, the following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the duration and extent of the current economic downturn; materially adverse changes in economic or labor conditions in the markets served by us or by companies in which we have substantial investments; material changes in available technology; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the final results of federal and state regulatory proceedings concerning our provision of retail and wholesale services and judicial review of those results; the effects of competition in our markets; our ability to satisfy regulatory merger conditions; the ability of Verizon Wireless to continue to obtain sufficient spectrum resources; our ability to recover insurance proceeds relating to equipment losses and other adverse financial impacts resulting from the terrorist attacks on Sept.11, 2001; and changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings. With respect to Verizon Wireless, we refer you to the factors that are discussed under “Risk Factors” in its Registration Statement on Form S-4 (No.333-92214.)

Wireless Bandwidth Is Increasing...

3G

2G

1G

Data Transmission Speed - Kbps0 9.6 32 64 128 144 384 2,000

Still Imaging

Video Streaming

Voice

Audio Streaming

Text Messaging

Telephone/Fax

E-mail Mobile Radio

Mobile Television

Remote Medical Service

High-Quality Video Conferencing

E-Commerce

Video On Demand

Voice MailDataWeather, traffic, news, sports, stock updates

AudioVoice-driven Web, streaming audio

Electronic Publishing

Incr

easi

ng

Val

ue

…Enabling new applications

2.1 BillionMessages

4Q’031Q’03 1Q’04

GROWTH INITIATIVES

Building on Data Success

4Q’031Q’03 1Q’04

>21 MillionPicture Messages

>19 MillionDownloads

4Q’031Q’03 1Q’04

Tri[plededin 2003

1Q03 2Q03 3Q03 4Q03

1X National Access

(data megabytes)

Broadband for Broadband for BusinessBusiness

ØØ SpeedSpeed

ØØ UbiquityUbiquity

Broadband for Broadband for ConsumerConsumer

ØØ Rich DataRich Data

ØØ MultiMulti--media media ExperienceExperience

2004+2004+1xEV1xEV--DODO

300kbps 300kbps –– 500kbps500kbps

2001-20031xRTT

40kbps – 60kbps dataBest-in-Class Voice

Investing $4B per year to create the best wireless network in the U.S.

Incremental $1B investment in ’04 and ‘05 to create the fastest, most efficient wireless WAN

GROWTH INITIATIVES

Expansion of EV-DO Network OpensFloodgates for Richer Services…

SMS Has Created a New User Behavior that is Instant, Easy and Fun!

MMS will be the next stepin personal communication

SMS Text Messaging

Hi, I’ll see you at 6 PM Regards, Bob Youth Market

Embraced 2-Way

cost effective, simple pricing

”new language”

C U @ 6 EMS Mass Market Service

More than 160 characters

With EMS -- You are able to write more than 160 character long messages, receive download content such as ringtones and graphics

Paging

MMS pictures tell more than a 1,000 words

another new sub-culture?

Greetings from Vegas!

MMSMMS

1. Sender selects messaging option and enters destination (phone and/oreMail address).

Up to 20 destinations for a single message can be selected.

2. Sender composes message and attaches media-object to message. Sender can select

different media content to compose the message (i.e. Photos (JPEG), Animation (GIF),

Sound Clips (EVRC or AMR), Polyphonic music tones (MIDI), Bit Map Picture (BMP) and

Short Video Clip (MPEG4).

3. Sender selects the ‘Send’ option. Message is sent using the CDMA 1XRTT network.

4. Message is received at destination ‘Inbox’ and is viewed just like an SMS is viewed today.

Send To:

Next Contacts

714555212

Message: 2/121

ABC Next

Here is my Picture Options

Back Send

Send MessageEdit Send toEdit Text

1 2 3

MMS (Camera Application)MMS (Camera Application)

The MMLThe MMLThe MML

q Pix Place Provides Users Online Photo Album.

q Camera Phone Users Take Picture & Upload to Pix Place Photo Album.

q Users Compose Pix Message on Pix Place & Send to Mobile & e-mail.

q Users Can Share Personal Content and Photo Album With Other Users.

q Pix Place Provide Content Gallery for Users to Create Pix Messages.

q Pix Place User Single Sign On Feature. Users With VTEXT User Name

& Password Can Use Pix Place Without Registration.

q In Pix Place Users Can Cut, Paste, Delete Content File/Folder.

New Pix Place - HomeNew Pix Place New Pix Place -- HomeHome

GROWTH INITIATIVES

Focus on High-value Consumers

• VZW can grow and capture parts of other consumer industries

• Already impacting digital imaging –– 73 M camera phones vs. 41 million digital cameras73 M camera phones vs. 41 million digital cameras

–– HiHi--resres camera phones will draw more users into archiving,camera phones will draw more users into archiving,

sharing, printing digital photossharing, printing digital photos

•• creating new markets for music and gamingcreating new markets for music and gaming

•• Content: critical success factor, differentiatorContent: critical success factor, differentiator–– Working with brand name applications developersWorking with brand name applications developers

•• Best distribution model to sell, support emerging servicesBest distribution model to sell, support emerging services

’04 Device Roadmap• EV-DO Devices

– More PC cards, modem solutions, E-mail devices– Handsets/devices for video, music and content – 1X: 100% of phones sold; 63% of base

• Picture Messaging– More models, more pixels– Video messaging

• E-Mail, SMS– Color Blackberry and Treo– IM: all 3 major IM services

– 100% of handsets sold are text capable

• Get it Now– More handsets, more apps

– 9 color handsets, 400 unique downloadable apps

• Push to Talk– Expanded lineup

• Global Phone

Global Phone

GROWTH INITIATIVES