Verizon Reports Continued Growth in 3Q

NEW YORK – Verizon Communications Inc. (NYSE:VZ) today reported strong results in the third quarter 2008, supported by Verizon Wireless’ continued strong performance, accelerating numbers of new FiOS customers, and continued increased sales of strategic business services.

Verizon Wireline reported accelerated growth of FiOS sales and continued increased sales of enterprise strategic services. In the third quarter (with prior-period comparisons adjusted to reflect the impact of the spinoff of non-strategic Wireline assets):

• Verizon added 233,000 net new FiOS TV customers, compared with 176,000 in the second quarter 2008. The company has 1.6 million FiOS TV customers, compared with more than 700,000 FiOS TV customers at the end of third-quarter 2007.
• FiOS TV sales penetration increased to 19.7 percent, compared with 15.2 percent in last year’s third quarter. Verizon made FiOS TV service available for sale to a record 1.2 million additional premises in the quarter, bringing the total to 8.2 million.
• Broadband and video revenues from consumer customers totaled $1.1 billion in the third quarter, representing year-over-year growth of 45.3 percent.
• Growing revenue from broadband and video services drove consumer ARPU in legacy Verizon wireline markets (which excludes consumer markets served by the former MCI) to $66.67, a 12.8 percent increase compared with last year’s third quarter.

                       3Q '07  4Q '07  1Q '08  2Q '08  3Q '08
                       ------  ------  ------  ------  ------
FiOS TV Customers (M)     0.7     0.9     1.2     1.4     1.6

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