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Wikipedia 🌐 Verizon Communications
Wikipedia 🌐 Verizon Communications
Notes :
Notes :
After GTE Corporation becomes Verizon Communications Incorporated (in 2000), it goes on to purchase with [MCI WorldCom Corporation] in 2006 (negotiations which started in 2005).
Formerly Bell Atlantic Corporation (1983–2000)
Type Public
Industry
Predecessor
Founded October 7, 1983; 37 years ago
Headquarters 1095 Avenue of the Americas, New York City, New York, U.S.
Area served Worldwide, mainly serving United States
Key people Hans Vestberg (Chairman, CEO)
Products
Revenue US$131.86 billion[1]:40 (2019)
Operating income US$30.38 billion[1]:40 (2019)
Net income US$19.79 billion[1]:41 (2019)
Total assets US$291.73 billion[1]:40 (2019)
Total equity US$62.84 billion[1]:80 (2019)
Number of employees 135,300 (July 24, 2020)
Skyward
Website
Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average.[10] The company is based at 1095 Avenue of the Americas in Midtown Manhattan, New York City,[4] but is incorporated in Delaware.
In 1984, the United States Department of Justice mandated AT&T Corporation to break up the Bell System into seven companies, each a Regional Bell Operating Company (RBOC), commonly referred to as "Baby Bells". Bell Atlantic,[11] one of the Baby Bells, came into existence the same year, consisting of the separate operating companies New Jersey Bell, Bell of Pennsylvania, Diamond State Telephone, and C&P Telephone, with a trading area from New Jersey to Virginia.
As part of a rebranding of the Baby Bells in the mid-1990s, all of Bell Atlantic's operating companies assumed the holding company's name. In 1997, Bell Atlantic expanded into New York and the New England states by merging with fellow Baby Bell NYNEX. Bell Atlantic was the surviving company name, and the merged company moved its headquarters from Philadelphia to NYNEX's old headquarters in New York City. In 2000, Bell Atlantic acquired GTE, which operated telecommunications companies across most of the rest of the country that was not already in Bell Atlantic's footprint. Bell Atlantic, the surviving entity, changed its name to Verizon, a portmanteau of veritas (Latin for "truth") and horizon.[12]
In 2015, Verizon expanded into content ownership by acquiring AOL,[13][14] and two years later, it acquired Yahoo!.[15] AOL and Yahoo were amalgamated into a new division named Oath Inc.,[16] currently known as Verizon Media. As of 2016, Verizon is one of three remaining companies with roots in the former Baby Bells. The other two, like Verizon, exist as a result of mergers among fellow former Baby Bell members. SBC Communications bought the Bells' former parent AT&T Corporation and took on the AT&T name, and Lumen Technologies (formerly Century Link) acquired Qwest (formerly US West) in 2011.
As of April 2019, Verizon's subsidiary Verizon Wireless is the second largest wireless communications service provider in the United States, with 153.1 million mobile customers.[17] And as of 2017, Verizon is the only publicly traded telecommunications company to have two stock listings in its home country, both the NYSE (principal) and NASDAQ (secondary).[18] As of 2017, it is also the second largest telecommunications company by revenue after AT&T.[19]
History[edit]
History[edit]
Bell Atlantic Corporation was created as one of the original Regional Bell Operating Companies (RBOCs) in 1984, during the breakup of the Bell System.[20][21] Bell Atlantic's original roster of operating companies included:
The Bell Telephone Company of Pennsylvania[22]
New Jersey Bell[23]
Diamond State Telephone[24]
C&P Telephone[24] (itself comprising four subsidiaries)[25]
Bell Atlantic originally operated in the states of New Jersey, Pennsylvania, Delaware, Maryland, West Virginia, and Virginia, as well as Washington, D.C.[24]
In 1996, CEO and Chairman Raymond W. Smith orchestrated Bell Atlantic's merger with NYNEX.[26] When it merged, it moved its corporate headquarters from Philadelphia to New York City.[26] NYNEX was consolidated into this name by 1997.[27]
Verizon's former logo used from May 19, 1998 to September 1, 2015
Bell Atlantic changed its name to Verizon Communications in June 2000, when the Federal Communications Commission approved the US$64.7 billion Merger with telephone company GTE, nearly two years after the deal was proposed in July 1998.[28] The approval came with 25 stipulations to preserve competition between local phone carriers, including investing in new markets and broadband technologies.[28] The new entity was headed by co-CEOs Charles Lee, former CEO of GTE, and Bell Atlantic CEO Ivan Seidenberg.[28]
Verizon became the largest local telephone company in the United States, operating 63 million telephone lines in 40 states.[29] The company also inherited 25 million mobile phone customers.[29] Additionally, Verizon offered internet services and long-distance calling in New York, before expanding long-distance operations to other states.[28][30]
The name Verizon derives from the combination of the words veritas, Latin for truth, and horizon.[31] The name was chosen from 8,500 candidates and the company spent $300 million on marketing the new brand.[31][32]
Two months before the FCC gave final approval on the formation of Verizon Communications, Bell Atlantic formed Verizon Wireless in a joint venture with the British telecommunications company Vodafone in April 2000.[32][33][34] The companies established Verizon Wireless as its own business operated by Bell Atlantic, which owned 55% of the venture.[33] Vodafone retained 45% of the company.[33] The deal was valued at approximately $70 billion and created a mobile carrier with 23 million customers.[32][33] Verizon Wireless merged Bell Atlantic's wireless network, Vodafone's AirTouch and PrimeCo holdings, and the wireless division of GTE.[33][35][36] Due to its size, Verizon Wireless was able to offer national coverage at competitive rates, giving it an advantage over regional providers typical of the time.[32]
During its first operational year, Verizon Wireless released Mobile Web, an Internet service that allowed customers to access partner sites such as E*Trade, ABC News, ESPN, Amazon.com, Ticketmaster, and MSN,[34] as well as the "New Every Two" program, which gave customers a free phone with every two-year service contract.[37] In another partnership with MSN in 2002, Verizon Wireless launched the mobile content service VZW with MSN and a phone that utilized the Microsoft Windows operating system.[38]
In August 2000, approximately 85,000 Verizon workers went on an 18-day labor strike after their union contracts expired.[39][40] The strike affected quarterly revenues,[41] resulting in Verizon Wireless' postponement of the company's IPO[41] (the IPO was ultimately cancelled in 2003 because the company no longer needed to raise revenue for Verizon Wireless due to increased profits),[42] and created a backlog of repairs.[40] This strike did not involve all company employees, as mostly line technicians and user technicians of the company are union.
Verizon launched 3G service in 2002, which doubled the Internet speeds of the time to 144kb a second.[43] In August 2002, Verizon began offering local, long-distance and mobile calling, as well as Internet service, in a bundle. It was initially only available to customers in New York and Massachusetts.[30]
In June 2003, Verizon Wireless backed an FCC-issued portability requirement that permitted consumers to take their phone numbers with them across carriers.[44] The company gained 1.5 million new subscribers the following quarter, partially due to the rule change.[45] In April 2004, the Dow Jones Industrial Average added Verizon Communications to its stock market index.[46] Verizon replaced telecom competitor AT&T, which had been a part of the index since the Great Depression.[46]
On December 22, 2004, mail servers at Verizon.net were configured not to accept connections from Europe by default in an attempt to reduce spam email that was originating from the region. Individual domains would only be unblocked upon request.[47]
In 2004, Verizon launched its Fios Internet service, which transmits data over fiber optic cables, in Keller, Texas.[48][49] The company launched Fios TV in September 2005, also in Keller. Twenty percent of qualified homes signed up by the end of 2004.[50] By January 2006, Fios offered over 350 channels in eight states, including 20 high-definition television channels as well as video on demand.[50]
MCI acquisition
In 2005, Verizon began negotiations to purchase long-distance carrier MCI, who accepted the company's initial $6.75 billion offer in February but then received a higher offer from Qwest Communications. Verizon increased its bid to $7.6 billion (or $23.50 a share), which MCI accepted on March 29, 2005.[51] The acquisition gave the company access to MCI's million corporate clients and international holdings, expanding Verizon's presence into global markets.[51][52] As a result, Verizon Business was established as a new division to serve the company's business and government customers.[53] The FCC approved the deal on November 5, 2005, valuing it at $8.5 billion.[54] Verizon's 2006 revenues rose by as much as 20% following the purchase.[55]
In May 2006, USA Today reported that Verizon, as well as AT&T and BellSouth, had given the National Security Agency landline phone records following the September 11 attacks.[56][57] That same month, a $50 billion lawsuit was filed by two lawyers on behalf of all Verizon subscribers for privacy violations and to prevent the company from releasing additional records without consent or warrant.[56][57] Protesters staged the National Day of Out(R)age due in part to the controversy.[58] In 2007, Verizon stated that it fulfilled only "lawful demands" for information,[59] but also acknowledged surrendering customer information to government agencies without court orders or warrants 720 times between 2005 and 2007.[60]
In March 2007, Verizon won a lawsuit against Vonage for patent infringement. The three patents named were filed by Bell Atlantic in 1997, and relate to the conversion of IP addresses into phone numbers, a key technology of Vonage's business.[61] The company was awarded US$58 million in damages and future royalties.[61] Vonage later lost an appeal and was ordered to pay Verizon $120 million.[62]
In May 2007, Verizon acquired Cybertrust, a privately held provider of global information security services.[63]
In September 2007, Verizon Wireless reversed a controversial decision to deny NARAL Pro-Choice America a short code through which the organization could text consumers who had signed up for messaging from the group. The company had initially refused the group access to a code by reserving the right to block "controversial or unsavory" messages.[64]
In November 2007, Verizon opened its networks to third party apps and devices for the first time,[65] a decision that allowed it to participate in the FCC's 2008 700 MHz auction of "open access" spectrum.[65][66] During that auction, the company bid $9.4 billion and won the bulk of national and local licenses for airwaves reaching approximately 469 million people.[66][67] Verizon utilized the increased spectrum for its 4G service.[66]
In June 2008, Verizon Wireless purchased wireless carrier Alltel for $28.1 billion. The acquisition included 13 million customers, which allowed Verizon Wireless to surpass AT&T in number of customers and reach new markets in rural areas.[68]
In October 2010, Verizon Wireless paid $77.8 million in refunds and FCC penalties for overcharging 15 million customers for data services. The company stated the overcharges were accidental and only amounted to a few dollars per customer.[69][70]
On February 4, 2010, 4chan began receiving reports from Verizon Wireless customers that they were having difficulties accessing the site's image boards. Administrators of the site found that only traffic on port 80 to the boards.4chan.org domain was affected, leading them to believe the block was intentional. On February 7, 2010, Verizon Wireless confirmed that 4chan.org was "explicitly blocked"[71] after Verizon's security and external experts detected sweep attacks coming from an IP address associated with the 4chan network. Traffic was restored several days later.[72]
In August 2010, the chairmen of Verizon and Google agreed that network neutrality should be defined and limited.[73][74]
In December 2010, Verizon introduced its 4G LTE network in 38 markets, as well as airports in seven additional cities. The company planned on a three-year continuous expansion of the 4G service.[75]
Between 2005 and 2010, Verizon divested wireline operations in several states to Frontier in order to focus on its wireless, Fios internet and Fios TV businesses.[55] It sold 700,000 lines in Hawaii in 2005,[55][76] and spun off lines in Maine, New Hampshire and Vermont in January 2007, which were then purchased by FairPoint Communications for $2.72 billion.[55] Verizon also shed its telephone directory business in 2006.[77]
In May 2009, the company spun off wirelines in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia, and Wisconsin into a company that then merged with Frontier Communications in a deal valued at $8.6 billion.[78][79] In 2016, Verizon sold its wireline operations in Texas, Florida, and California to Frontier.[80]
On January 27, 2011, Verizon acquired Terremark, an information technology services company, for $1.4 billion.[81] Ivan Seidenberg retired as Verizon's CEO on August 1, 2011, and was succeeded by Lowell McAdam.[82]
In December 2011, the non-partisan organization Public Campaign criticized Verizon for its tax avoidance procedures after it spent $52.34 million on lobbying while collecting $951 million in tax rebates between 2008 and 2010 and making a profit of $32.5 billion. The same report also criticized Verizon for increasing executive pay by 167% in 2010 for its top five executives while laying off 21,308 workers between 2008 and 2010.[83] However, in its Form 10-K filed with the SEC on February 24, 2012, Verizon reported having paid more than $11.1 billion in taxes (including income, employment and property taxes) from 2009 to 2011. In addition, the company reported in the 10-K that most of the drop in employment since 2008 was due to a voluntary retirement offer.[84]
In June 2012, Verizon purchased Hughes Telematics, a producer of wireless features for automobiles, for $612 million as part of its strategy to expand into new growth areas in its wireless business.[85] The same month, Verizon's E-911 service failed in the aftermath of the June 2012 derecho storm in several northern Virginia suburbs of Washington, D.C., with some problems lasting several days.[86] The FCC conducted an investigation[86] and released a report detailing the problems that led to the failure in January 2013. Verizon reported that it had already addressed or was addressing a number of the issues related to the FCC report, including the causes of generator failures, conducting audits of backup systems, and making its monitoring systems less centralized,[87] although the FCC indicated that Verizon still needed to make additional improvements.[88]
In July 2012, the FCC ruled that Verizon must stop charging users an added fee for using 4G smartphones and tablets as Wi-Fi hotspots (known as "tethering"). Verizon had been charging its customers, even those with "unlimited" plans, $20 per month for tethering. As part of the settlement, Verizon made a voluntary payment of $1.25 million to the U.S. Treasury.[89]
In August 2012, the Department of Justice approved Verizon's purchase of Advanced Wireless Services (AWS) spectrum from a consortium of cable companies, including Comcast, Time Warner Cable and Bright House Networks, for $3.9 billion.[90] Verizon began expanding its LTE network utilizing these extra airwaves in October 2013.[91]
On June 5, 2013, The Guardian reported it had obtained an order by the Federal Bureau of Investigation (FBI) and approved by the United States Foreign Intelligence Surveillance Court that required Verizon to provide the NSA with telephone metadata for all calls originating in the U.S.[92][93] Verizon Wireless was not part of the NSA data collection for wireless accounts due to foreign ownership issues.[94]
In September 2013, Verizon purchased the 45% stake in Verizon Wireless, previously owned by Vodafone, for $130 billion.[95] The deal closed on February 21, 2014, and became the third largest corporate deal ever signed, giving Verizon Communications sole ownership of Verizon Wireless.[96]
On January 14, 2014, the DC Circuit Court of Appeals struck down the FCC's net neutrality rules after Verizon filed suit against them in January 2010.[97][98] In June 2016, in a 184-page ruling, the United States Court of Appeals for the District of Columbia Circuit upheld, by a 2–1 vote, the FCC's net neutrality rules and the FCC's determination that broadband access is a public utility rather than a luxury. AT&T and the telecom industry said they would seek to appeal the decision to the Supreme Court.[99]
On January 22, 2014, the Wall Street Journal reported that Verizon received more than 1,000 requests for information about its subscribers on national security grounds via National Security Letters. In total, Verizon received 321,545 requests from federal, state and local law enforcement for U.S. customer information.[100] In May 2015, Verizon agreed to pay $90 million "to settle federal and state investigations into allegations mobile customers were improperly billed for premium text messages."[101]
In late October 2014, Verizon Wireless launched the technology news website SugarString. The publication attracted controversy after it was reported that its writers were forbidden from publishing articles related to net neutrality or domestic surveillance. Although Verizon denied that this was the case, the site (described as being a pilot project) was shuttered in December.[102][103]
In August 2015, Verizon launched Hum, a service and device offering vehicle diagnostic and monitoring tools for vehicles.[104] On August 1, 2016, Verizon announced its acquisition of Fleetmatics, a fleet telematics system company in Dublin, Ireland, for $2.4 billion, to build products that it offers to enterprises for logistics and mobile workforces.[105] On September 12, 2016, Verizon announced its acquisition of Sensity, a startup for LED sensors, in an effort to bolster its IoT portfolio.[106]
In October 2016, Verizon was accused by Communications Workers of America of deliberately refusing to maintain its copper telephone service. The organization released internal memos and other documents stating that Verizon workers in Pennsylvania were being instructed to, in areas with network problems, migrate voice-only customers to VoiceLink, a system that delivers telephone service over the Verizon Wireless network, and not to repair the copper lines. VoiceLink has limitations, including incompatibility with services or devices that require the transmission of data over the telephone line, and a dependency on a battery backup in case of power failure. The memo warned that technicians who do not follow this procedure would be subject to "disciplinary action up to and including dismissal". A Verizon spokesperson responded to the allegations, stating that the company's top priority was to restore service to customers as quickly as possible, and that VoiceLink was a means of doing so in the event that larger repairs had to be done to the infrastructure. The spokesperson stated that it was "hard to argue with disciplining someone who intentionally leaves a customer without service".[107][108]
In November 2016, Verizon acquired mapping startup SocialRadar, whose technology would be integrated with MapQuest.[109]
On January 26, 2017, the Washington Post reported that Verizon was in talks to merge with Charter Communications.[110]
In 2017, Verizon partnered with Alley to develop a number of coworking spaces under the name "Alley powered by Verizon".[111][112][113]
On March 13, 2017, Verizon was sued by New York City for violating its cable franchise agreement, which required the provider to pass a fiberoptic network to all households in the city by June 30, 2014. Verizon disputed the claims, citing landlords not granting permission to install the equipment on their properties, and an understanding with the government that the fiber network would follow the same routes as its copper lines, and did not necessarily mean it would have to pass the lines in front of every property.[114]
On April 27, 2017, Verizon invested $10 million in Renovo Auto, an autonomous vehicle company based in Campbell, California.[115]
Verizon Connect was created in 2018, combining the individual Telematics, Fleetmatics, and Telogis units.[116][117][118]
On January 17, 2019, Verizon announced that it would offer anti-spam and robocalling features free of charge to all its customers beginning in March.[119][120]
In April 2019, Verizon began rolling out its 5G mobile network, which was active in 30 cities by the end fo the year.[121][122] Unlike other U.S. carriers, Verizon only uses millimeter-wave (mmWave) spectrum for its 5G network.[123] While capable of very high speeds, mmWave has limited range and poor building penetration.[124][125]
On May 15, 2020, Verizon acquired videoconferencing service BlueJeans in order to expand its business portfolio offerings, particularly its unified communications offerings. While the price of the acquisition was not announced, it is believed to be in the sub $500 million range.[126] The transaction is expected to close in the second quarter of 2020.[127] In September of the same year, the business announced it plans to acquire TracFone Wireless (a business unit of Mexican telecom business, America Movil) for $6.25 billion.[128]
In October 2020, Verizon collaborated with Apple to bring 5G connectivity to Apple's iPhone 12 lineup.[citation needed]
Acquisition of AOL and Yahoo[edit]
On May 12, 2015, Verizon announced it would acquire AOL at $50 per share, for a deal valued around $4.4 billion.[129][130] The following year, Verizon announced it would acquire the core internet business of Yahoo! for $4.83 billion.[15][131][132] Following the completion of the acquisitions, Verizon created a new division called Oath, which includes the AOL and Yahoo brands.[16] The sale did not include Yahoo's stakes in Alibaba Group and Yahoo! Japan.[133][134]
On March 16, 2017, Verizon announced it would discontinue the e-mail services provided for its internet subscribers and migrate them to AOL Mail.[135]
On May 23, 2017, Verizon CEO Lowell McAdam confirmed the company's plan to launch a streaming TV service.[136] The integrated AOL-Yahoo operation, housed under the newly created Oath division, would be organized around key content-based pillars.[137]
On June 13, 2017, Verizon completed its acquisition of Yahoo for $4.48 billion.[138]
Verizon service van
On December 10, 2018, Verizon announced that 10,400 managers had agreed to leave the company as part of a "voluntary separation program" offered to 44,000 employees, resulting in a cut of around 7% of its workforce. At the same time, the company announced a $4.6 billion write-off on its media division, citing "increased competitive and market pressures throughout 2018 that have resulted in lower-than-expected revenues and earning."[139]
Finances[edit]
Finances[edit]
For the fiscal year 2019, Verizon reported earnings of US$19.265 billion, with an annual revenue of US$131.868 billion, an increase of 0.77% over the previous fiscal cycle. Verizon's shares traded at over $45 per share, and its market capitalization was valued at over US$229.1 billion in October 2018.[140] As of 2018, Verizon is ranked No. 16 on the Fortune 500 rankings of the largest corporations in the United States by total revenue.[141]
Marketing campaigns[edit]
Marketing campaigns[edit]
Since its inception, Verizon Communications has run several marketing campaigns, including:
The "Can you hear me now?" campaign, which was created for the newly formed Verizon Wireless, started running in 2001, and featured actor Paul Marcarelli in the role of "Test Man", a character based on a Verizon network tester, who travels the country asking "Can you hear me now?".[142][143][144] The campaign, originally conceived by New York agency Bozell, ran from early 2001 to September 2010.[145][146] Data from the technology tracking firm The Yankee Group showed that, in the early years of the campaign, net customers grew 10% to 32.5 million in 2002 and 15% more to 37.5 million in 2003. In addition, customer turnover dropped to 1.8% in 2001, down from 2.5% in 2000.[144] In 2011, Marcarelli parted ways with Verizon, and is now a spokesperson for Sprint.[147]
The "There's a map for that" campaign was launched in late 2009, designed as a parody of AT&T's "There's an app for that" campaign. The ads depicted a side-by-side comparison of Verizon and AT&T network coverage maps.[148] In early November 2009, AT&T filed a lawsuit in Atlanta federal court, claiming that the coverage maps being used in the ads were misleading.[149] The suit was dropped later that month in conjunction with Verizon dropping a similar suit against AT&T.[148]
In 2009, Verizon joined with the Ad Council, in partnership with the Family Violence Prevention Fund and the Office on Violence Against Women, to create the "That's not cool" public service advertising campaign. Designed to help teens recognize and prevent digital dating abuse, the ads were run on its Wireless' Mobile Web service, Verizon FiOS internet and TV.[150][151]
In January 2013, Verizon launched the "Powerful Answers" campaign, designed by agency McGarryBowen.[152] The campaign centered around a contest in which $10 million in prizes was offered to individuals for finding solutions to "the world's biggest challenges" by making use of Verizon's cloud, broadband and wireless networks.[153][154] Winners of the inaugural competition were announced at the 2014 Consumer Electronics Show.[153] Israel-based TinyTap won the education category; Smart Vision Labs of Newport, Rhode Island, won in the healthcare category; and Mosaic Inc. of Oakland, California, won in the sustainability category.[153]
In June 2014, Verizon launched the "Inspire Her Mind" campaign, created by agency AKQA. It was designed to encourage girls' interest in science, technology, engineering and math,[155] and aimed to address findings from the National Science Foundation, whose research showed that 66 percent of fourth-grade girls said they were interested science and math, yet only 18 percent of college students in engineering and math are women.[156][157]
In February 2015, Verizon launched its Flipside Stories ad campaign, featuring the #NeverSettle hashtag. The ads showed dramatized "testimonials" of people with and without Verizon Wireless or Verizon Fios services.[158][159][160]
In 2016, Verizon started using the slogan "Better Matters" in reference to its networks.[161]
Verizon launched its Humanability campaign in 2017.[162][163] The company aimed for the ads to showcase to consumers and investors its diversification of revenue sources and technology beyond smartphones. These include online advertising, data collection, Internet of Things, smart cities, telematics, and media.[162][163]
Corporate governance
Corporate governance
Board of directors
The current board of directors is comprised as follows as of July 2019:[164]
Hans Vestberg, chairman and CEO
Melanie Healey, former president of Procter & Gamble[165]
Kathryn Tesija, former executive vice president of Target Corporation
Gregory Weaver, former CEO of Deloitte's audit and enterprise risk division
Executives
Hans Vestberg, chairman and CEO
Ronan Dunne, executive vice president and group CEO, Verizon Consumer
Tami Erwin, executive vice president and group CEO, Verizon Business
Guru Gowrappan, executive vice president and group CEO, Verizon Media
Corporate responsibility
Corporate responsibility
The Verizon Foundation is the philanthropic arm of Verizon Communications, which donates about $70 million per year to nonprofit organizations, with a focus on education, domestic violence prevention, and energy management.[168] Verizon's educational initiatives have focused on STEM fields,[169] including: a national competition for students to develop mobile application concepts;[169] the Verizon Innovative Learning Schools program, providing professional development for teachers in underserved areas;[170] and providing students with wireless hardware and services as part of President Obama's ConnectED program.[171] The company also runs HopeLine, which has provided mobile phones to approximately 180,000 victims of domestic violence,[172][173] and a program that offers grants for victims of domestic violence to start or grow home-based businesses.[174] As part of an initiative to reduce the company's carbon intensity metrics by 50 percent by 2020, Verizon announced planned investment in solar panels and natural gas fuel cells at its facilities.[175] The increased capacity would make Verizon the leading solar power producer among U.S. communications companies.[176]
On February 5, 2019, Verizon first entered the green bond market with an issue of $1 billion. The sale was oversubscribed, meaning that investors bids were about $8 billion. Verizon plans to invest money on renewable energy, for instance, by developing solar and wind energy energy-efficient projects involving technology and equipment replacement, and the deployment of 5G wireless technologies, allowing for real-time response for energy demand (smart building management and city systems), green buildings, sustainable water management, and also biodiversity and conservation.[177]
According to Cbonds, the newly issued green bonds have 3.875% coupon rate and will mature on August 5, 2029. Goldman Sachs and Bank of America Merrill Lynch were the bookrunners of the deal.[178]
Criticism
Criticism
Security concerns
According to Google Project Zero researcher Tavis Ormandy, Verizon applies a simplistic certification methodology to give its "Excellence in Information Security Testing" award, e.g. to Comodo Group. It focuses on GUI functions instead of testing security relevant features. Not detected were Chromodo browser disabling of the same-origin policy, a VNC-delivered with a default of weak authentication, not enabling address space layout randomization (ASLR) when scanning, and using access control lists (ACLs) throughout its product.[179]
Net neutrality
Verizon and Comcast have been actively lobbying for current changes in the FCC's regulations that require internet service providers to offer all content at one internet speed regardless of the type of content since the early 2000s. In 2014, Verizon unsuccessfully sued the FCC for these powers.[180] Verizon has admitted to throttling content of its competitors including Netflix and YouTube.[181][182]
Deceptive advertising of 5G
In May 2020, the Better Business Bureau criticized Verizon for claiming it was "building the most powerful 5G experience for America" and recommended that the company make clear and conspicuous disclosures to consumers about the limited actual availability of its 5G network.[183] Verizon had been cited by the Better Business Bureau in March 2019 for ads that "convey the message that Verizon has achieved the important milestone of deploying the first mobile wireless 5G network" prior to 5G availability, falsely conveying that the technology was currently available.[184]
Privacy
Verizon has a one-star privacy rating from the Electronic Frontier Foundation.[185]
Sponsorships and venues
Sponsorships and venues
Verizon is the title sponsor of several large performance and sports venues as well as a sponsor of many major sporting organizations.
National Hockey League
In January 2007, Verizon secured exclusive marketing and promotional rights with the National Hockey League.[186] The deal was extended for another three years in 2012 and included new provisions for the league to provide exclusive content through Verizon's GameCenter app.[187]
Motorsports
In 2009 and 2010 Verizon sponsored Justin Allgaier in the NASCAR Nationwide Series, before they chose to opt out of a two-year-old NASCAR team sponsorship with Penske Racing in order to pursue an expanded presence with the IndyCar Series.[188] In March 2014 Verizon became title sponsor of the series through 2018.[189]
National Football League
In late 2010, Verizon Communications joined with Vodafone Group in a joint partnership to replace Sprint as the official wireless telecommunications partner of the National Football League.[190] The four-year deal was estimated at $720 million. In June 2013, Verizon announced a four-year extension with the NFL in a deal reportedly valued at $1 billion. The new agreement gave Verizon the right to stream every NFL regular-season and playoff game.[191]
[...]
Venues
Verizon is the title sponsor for a number of sporting and entertainment arena the Verizon Arena in North Little Rock, Arkansas;[196] and the Verizon Center in Mankato, Minnesota.[197] SNHU Arena in Manchester, New Hampshire, was originally known as the Verizon Wireless Arena until September 2016, when Southern New Hampshire University acquired the naming rights for a period of at least 10 years.[198]
Verizon has been the title sponsor of entertainment amphitheaters in locations throughout the United States, including four individually referred to as the "Verizon Wireless Amphitheatre": in Irvine, California;[199] Maryland Heights, Missouri;[200] Selma, Texas;[201] and Alpharetta, Georgia.[202]
Verizon is a former sponsor of the Capital One Arena in Washington, DC.[203]
The main home concert hall of the Philadelphia Orchestra at the Kimmel Center for the Performing Arts is named Verizon Hall.[204]
Evidence timeline
Evidence timeline
2000 (April 06) - The Boston Globe
2000 (April 06) - The Boston Globe
Full newspaper page : [HN01F0][GDrive]
See : Genuity Incorporated (2000) , GTE Corporation , Verizon Communications Incorporated
2000 (May 25)
2000 (May 25)
Full newspaper page - [HN01F5][GDrive]
See : Genuity Incorporated (2000) , GTE Corporation , Verizon Communications Incorporated
WASHINGTON-The Federal Communications Commission late Friday approved the transfer of GTE Corp.’s communications licenses to Bell Atlantic Corp. contingent on 25 conditions, including putting some wireless properties into a trust until they can be sold so as to not violate cellular cross-ownership rules.
“There will be those that will claim this merger brings us closer to a re-emergence of Ma Bell, however, my support is predicated on the applicants’ enforceable commitments to open its traditional local markets to competitors, invest in new markets and accelerate deployment of broadband technologies. The end result should produce more competition, not less,” said FCC Chairman William Kennard.
“This is a great day for Bell Atlantic and GTE, for our customers, our investors and our employees … This final approval contains reasonable conditions that clear the way to unite these two great companies into Verizon Communications,” said Charles R. Lee, chairman and chief executive officer of GTE and designated chairman and co-CEO of the new company. The merger is expected to close by June 30.
Bringing GTE’s wireless holdings into Verizon Wireless-the mobile-phone company consisting of Bell Atlantic Mobile, PrimeCo and Vodafone AirTouch plc-would create the nation’s largest wireless company, with more than 24 million customers and a footprint covering 90 percent of the United States.
“Our ability to deliver a full plate of voice, data, Internet and wireless services to all our customers will make Verizon the next great brand in communications,” said Ivan Seidenberg, chairman and CEO of Bell Atlantic and designated president and co-CEO of Verizon.
Bell Atlantic and GTE obtained Department of Justice approval after selling off overlapping wireless properties. Some of the sales were made in a multiproperty deal with Alltel Corp., which was approved by the FCC’s Wireless Telecommunications Bureau last week.
One of the major conditions on the transfer involves GTE’s Internet backbone, operation of which would violate the Telecommunications Act of 199
To get around the telecom act’s prohibition against regional Bell operating companies offering long-distance services, Bell Atlantic and GTE proposed, and the FCC accepted, spinning off the Internet backbone into a new entity called Genuity [(Genuity Incorporated (2000))].
Verizon would have a 9.5 percent interest in Genuity [(Genuity Incorporated (2000))] until Verizon is granted long-distance authority in the former Bell Atlantic states. Bell Atlantic has received such authority in New York but still has 12 states and the District of Columbia to go. Once approval has been obtained, Verizon would then be permitted to control up to 80 percent of Genuity. If approval is not granted for at least 50 percent of the old Bell Atlantic territory within five years, the conversion to 80-percent stock would evaporate.
Seidenberg said he expects long-distance approval within two years from the close of the merger.
This arrangement satisfied FCC Commissioner Susan Ness, who said approving the merger was “a close call.”
Both Republican members of the commission partially dissented in the approval because of the conditions placed on it.
“None of the shortcomings I address here or in my previous statement on these issues will ever be addressed unless the commission begins to reform the majority’s `balancing approach’ to merger review that we apply again here, or seriously question the aforementioned specious theories of potential harm,” said FCC Commissioner Michael Powell.
FCC Commissioner Harold Furchtgott-Roth also dissented because he does not believe the commission should be involved in regulating undersea cable licenses. This is one of the approvals the FCC granted.
Amid concerns that someone might challenge the license transfers, the companies said they believe the approval with conditions can withstand any court challenge.
“We think this arrangement is bullet proof. We believe we have the best lawyers and best consultants that one could have … We don’t think there is a minuscule chance that this would be overturned,” said Lee.
Fate of WorldCom/Sprint
Internet issues also may derail WorldCom Inc.’s hopes of marrying Sprint Corp. and gaining control of Sprint PCS.
Sprint Chairman William Esrey told shareholders last week at the company’s annual meeting in Westwood, Kan., that some Justice Department staff do not support the merger.
“We have had a number of high-level meetings with [DOJ] officials in recent weeks, but it remains unclear if we will or will not get the necessary government clearances to implement the merger,” Esrey said.
WorldCom needs the merger to fill in the large wireless gap in its offerings. Sprint needs to expand its international reach. Both companies would benefit from combining their fixed-wireless assets.
While DOJ seems concerned with the antitrust implications of a merger between the nation’s No. 2 and No. 3 long-distance companies, the European Commission is concerned about WorldCom’s dominance of the Internet. Experts believe WorldCom is willing to sell off Sprint’s Internet backbone but not its stake in UUNet.
Similar concerns when WorldCom bought MCI Communications Corp. led to the sale of some of WorldCom’s assets to Cable and Wireless plc. This sale was not successful and experts believe the EC does not want to create a repeat situation.
The EC is scheduled to make a decision by July 12
Should WorldCom/Sprint convince DOJ and EC officials that the merger would create an all-distance company in an all-distance telecommunications market, the company still must receive FCC approval to transfer its licenses.
2002 (July 26) - NYTimes - "Genuity Faces Bankruptcy As Verizon Ignores an Option"
2002 (July 26) - NYTimes - "Genuity Faces Bankruptcy As Verizon Ignores an Option"
By Seth Schiesel With Simon Romero ; See [HN01C4][GDrive] ;
This article is also located at [Genuity Incorporated (2000)]
Genuity [(Genuity Incorporated (2000))], the last of the original Big Three Internet carriers, may be about to go the way of its competitors -- into bankruptcy.
Verizon, the No. 1 local phone company, said yesterday that it would not rescue Genuity from the telecommunications and technology vortex by taking control of the company.
Verizon, which spun off Genuity [(Genuity Incorporated (2000))] two years ago, had been expected to reassume control of the company by June 2005, under terms of the spinoff
Yesterday's announcement sent Genuity's stock plummeting by 89 percent to close at 29 cents, pushed Genuity into default on $3 billion in loans and raised the possibility that the company might have to file for bankruptcy protection within months. If that happens, Genuity would take its place alongside WorldCom's UUNet division and PSINet as former highflying Internet ''backbone'' companies operating under bankruptcy protection.
A sharp sell-off of Genuity's shares on Wednesday -- otherwise the best day for stocks in 15 years -- suggested that some traders might have had advance warning of yesterday's announcement. Certainly, the Wall Street grapevine may have known something was afoot: Genuity [(Genuity Incorporated (2000))] revealed yesterday that on Monday, it had drawn down $723 million from a prior credit line with eight banks.
But Genuity said yesterday that it had no idea that Verizon was planning to drop its option when Genuity called on the banks Monday. ''This is absolutely coincidental from our standpoint,'' Susan Kraus, a Genuity spokeswoman, said yesterday. ''We had absolutely no knowledge of what Verizon was going to do.''
As the Internet came to popular attention in the early 1990's, three companies emerged as the leading carriers of Internet data: Uunet, PSINet and Genuity's predecessor, BBN. As telephone companies expanded into data networking in the 1990's, they were eager to acquire those early pioneers. Although PSINet remained independent, [UUNET Technologies, Incorporated] was acquired by [MFS Communications Company, Incorporated] shortly before MFS was acquired by WorldCom [, which later became MCI WorldCom Corporation,] in 1996. GTE acquired BBN in 1997 and later renamed it Genuity.
When Bell Atlantic acquired GTE in 2000, creating Verizon, the combined company spun off 90 percent of Genuity as a condition for winning regulatory approval for that deal. Bell Atlantic was not allowed to control Genuity because Bell Atlantic was not then allowed to sell long-distance communications services, including data networking.
But Verizon accurately anticipated that it would win the necessary long-distance approval within a few years. So, when it spun off most of Genuity to public shareholders in 2000, it retained the ability to reassume control of Genuity by mid-2005.
Until recently, many investors expected that Verizon would assert its option, given that Genuity had grown from $183 million in revenue in 1997 to $1.2 billion last year.
Genuity's losses, however, have also grown. Were Verizon to reacquire control of Genuity, it would also have to consolidate Genuity's $3 billion in debt and its annual losses -- $4 billion last year -- into its own financial statements.
Already jittery about the state of the regional Bell companies, investors were loath for Verizon to make that move. As a result, Verizon said yesterday that it would not. Now, Verizon appears to believe that it can get into the long-distance data communications business without assuming Genuity's baggage
Given the stock movement on Wednesday, the most important outstanding questions are about just when Verizon made that decision and when Verizon told Genuity.
On Wednesday, as the Dow Jones industrial average soared by nearly 489 points, Genuity's shares plunged by 26 percent, to $2.59, from Tuesday's close of $3.50. Peter Thonis, a Verizon spokesman, said yesterday that Verizon did not tell Genuity about its decision until after the stock market closed on Wednesday.
As for Genuity [(Genuity Incorporated (2000))], the question is why it rushed to borrow $723 million on Monday.
Genuity said yesterday that the group of eight banks really should have been nine and that the $723 million really should have been $850 million. Genuity said Deutsche Bank refused to honor a commitment to lend it an additional $127 million, and that it had sued Deutsche Bank in Federal Court in Massachusetts.
Deutsche Bank said that it had not received any legal papers and that it was in talks with Genuity.
People close to Genuity's lenders said yesterday that Genuity called its banks on Monday morning and demanded the money remaining under its prior credit line by noon that day. Some banking executives said yesterday that companies generally were prepared to wait 48 hours before actually receiving cash under a credit line. They speculated that Deutsche Bank could have been unnerved by the unusually urgent nature of Genuity's request.
Ms. Kraus, the Genuity spokeswoman, said Genuity's agreement with its lenders allowed the company to draw on its loans quickly.
Some bankers speculated yesterday that the eight other banks that did comply might have inferred that Genuity was worried about Verizon's intentions. Moreover, according to people close to both Genuity and Verizon, Michael T. Masin, a Verizon vice chairman and Genuity board member, was asked not to attend a Genuity board meeting on Sunday. His exclusion could have fueled a perception that Genuity suspected that Verizon would cut it loose soon.
2002 (Jul 26) - Forbes - "Genuity Is Left On The Launching Pad"
2002 (Jul 26) - Forbes - "Genuity Is Left On The Launching Pad"
This article is also located at [Genuity Incorporated (2000)]
Genuity [(Genuity Incorporated (2000))] introduced itself to a puzzled public two years ago with an ad campaign that featured a mysterious-looking black rocket and a very 1990s tagline: "Do you want to change the world?" But the '90s, alas, had just ended, and the world had already changed--and not for the better, if you were a tech investor.
Now Genuity and its rocket appear headed for the auction block. Irony abounds in the situation, for Genuity descends from BBN, the firm that pretty much built the original Internet. The firm's current travails offer yet another sad illustration of the Moses syndrome, in which the visionary genius who points the way to the promised land fails to make it there himself.
Genuity [(Genuity Incorporated (2000))] operates a major Internet backbone network. The firm started touting its Black Rocket network services platform with that ad campaign in late 2000, just as the Internet stock market boom was collapsing. Genuity remained unprofitable, and investors abandoned this stock en masse on July 25, after Verizon Communications cut the lifeline that theoretically had tethered Genuity to its former corporate parent.
[Verizon Communications Incorporated] on July 24 [2002] effectively relinquished its right to reacquire a controlling interest in Genuity [(Genuity Incorporated (2000))]. That decision pushed Genuity into default on some of its credit agreements. The next day its shares fell almost 90%, to 29 cents from $2.59, and although it was back up over 50 cents today in afternoon trading, the stock has been cut to a rare "sell" rating by at least one Wall Street analyst. Genuity Chairman Paul Gudonis was reduced to talking up his "valuable set of assets," which is the verbal equivalent of hanging a "for sale cheap" sign on the front door.
"Now that Verizon has elected not to reintegrate Genuity, we will evaluate all our options, which could include seeking another strategic partner or restructuring our operating plan while we address this situation," Gudonis said in a statement expressing disappointment with Verizon's decision.
BBN--originally Bolt, Beranek and Newman--was founded in Cambridge, Mass., in 1948 by professors from the Massachusetts Institute of Technology. Then in 1960, BBN employee J.C.R.LickliderJ.C.R. Licklider famously forecast the Internet with his seminal "Man-Computer Symbiosis" paper. It was BBN that built the ARPANET, the Internet's forerunner; it was BBN's RayTomlinsonRay Tomlinson who invented e-mail, which soon composed the bulk of the Internet's traffic. So it made sense that BBN would end up a major Internet backbone firm. In 1997 it was acquired by GTE in a deal valued at $616 millio
A few months later, GTE bought a Bechtel Enterprises unit called Genuity [(Genuity Incorporated (2000))] and combined it with BBN. Then in 2000, GTE merged with Bell Atlantic to form Verizon. The Internet network had to be spun off, because a Baby Bell was not allowed to be in the long-distance data business. But Verizon retained an option, if certain conditions were met, to reabsorb Genuity. The general expectation was that Verizon one day would exercise that option, which is why this week's announcement to the contrary left the spinoff gasping for life.
With WorldCom already in Chapter 11 proceedings, its UUNet Internet backbone unit presumably is being shopped around. Now Genuity too is up for grabs--and with it, the storied BBN legacy. It's one thing to invent the Internet, it seems, and quite another to figure out how to make it pay.
2002 (Nov 27) - NetworkWorld - Level 3 to buy bankrupt Genuity's assets
2002 (Nov 27) - NetworkWorld - Level 3 to buy bankrupt Genuity's assets
Stephen LawsonBy Stephen Lawson ; See [HP004I][GDrive]
This article is also located at [Genuity Incorporated (2000)]
Internet backbone provider [Level 3 Communications, Incorporated] has agreed to acquire the bulk of the assets of network provider Genuity [(Genuity Incorporated (2000))], which has filed for bankruptcy, the companies announced Wednesday.
Level 3 will pay as much as $242 million in cash and assume a significant portion of Genuity's long-term operating agreements, according to a statement from the companies. The deal must be approved by regulatory agencies and a bankruptcy court and is expected to close in the first quarter of 2003.
Also Wednesday, Genuity [(Genuity Incorporated (2000))] filed voluntary petitions for reorganization under Chapter 11 of the U.S. bankruptcy code, the statement said. The cash on Genuity's balance sheet, together with Level 3's cash payment, will be distributed to creditors of Genuity.
Based in Woburn, Mass., Genuity [(Genuity Incorporated (2000))] was spun out of U.S. telecommunications carrier [Verizon Communications Incorporated] according to the terms of the merger of Bell Atlantic and [GTE Corporation] that created Verizon in 2000. More recently, the company has been suffering financially amid a glut of capacity on backbone networks. In May, Genuity announced that it would cut as much as 30 percent of its workforce, or 1,200 jobs.
[Level 3 Communications, Incorporated], in Broomfield, Colorado, will acquire Genuity's network transport business as well as its dedicated and dial-up Internet access operations. It also will take over Genuity's managed services business, which it will combine with its iStructure subsidiary but continue to operate under the Genuity brand.
Genuity's biggest customers are Verizon and AOL, according to the statement. Verizon has executed a new multi-year contract to buy wholesale dial-up, transport and other services from Level 3, which should take effect when the acquisition closes.
2002 (Nov 27) - "Level 3 to acquire Genuity assets and operations for $242 million"
2002 (Nov 27) - "Level 3 to acquire Genuity assets and operations for $242 million"
Source - LightWaveOnline - [HW005H][GDrive]
This article is also located at [Genuity Incorporated (2000)]
[Level 3 Communications, Incorporated] and Genuity Inc. [(Genuity Incorporated (2000))] announced today that they have signed a definitive agreement under which Level 3 will acquire substantially all of the assets of the Massachusetts-based communications company.
[Level 3 Communications, Incorporated] will pay up to $242 million in cash and assume a significant portion of existing long-term operating agreements to acquire Genuity's assets and operations. To facilitate the transaction, Genuity [(Genuity Incorporated (2000))] today is filing voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. Level 3's cash consideration at closing could be reduced subject to certain material adjustments.
Closing is expected to occur during the first quarter of 2003. The transaction is subject to approval by the bankruptcy court and certain government regulatory agencies.
"This transaction represents the best outcome for the key constituencies of both Genuity and Level 3," contends Paul R. Gudonis, chairman and chief executive officer of Genuity. "Both companies, as well as Genuity's largest customers and creditors, have signed agreements supporting the transaction."
"There is a unique and compelling fit between Genuity and Level 3," adds James Q. Crowe, Level 3's chief executive officer. "The transaction combines the assets and operations of Genuity, the company that helped invent the Internet, with Level 3, the company that built the first network fully optimized for Internet Protocol-based communications. Both companies are experienced providers of optical and IP-based services, and both are Tier 1 Internet backbone providers with industry-leading quality of service. Genuity's transport and dedicated and dial-up Internet access business--more than 80 percent of revenue--is complementary to Level 3's transport, managed modem and IP services business."
Based in Woburn, MA, Genuity [(Genuity Incorporated (2000))] operates an international IP network. The company provides dial-up and dedicated Internet access, transport, managed security and VPN, hosting and other services to communications companies, enterprises and government agencies. Its largest customers are Verizon Communications and America Online, which accounted for greater than 60 percent of its $223 million in revenue for the third quarter of 2002.
All but one of Genuity's banks have signed an agreement in support of the transaction. Verizon has executed a new multi-year contract to purchase wholesale dial-up, IP, transport and other services from Level 3, to take effect when the transaction closes. America Online has signed an agreement consenting to the transaction that contemplates [Level 3 Communications, Incorporated] acquiring America Online's network services agreement with Genuity. In addition, Allegiance Telecom Inc., Genuity's largest network supplier, supports the transaction.
As part of this transaction, Level 3 is also acquiring Genuity's managed services business and its associated enterprise customers and product set. "We recognize the importance of these customers and are committed to ensuring they receive the highest quality service without disruption," asserts Kevin O'Hara, president and chief operating officer of Level 3. "As a result, we plan to combine these operations with those of our (i)Structure subsidiary in order to focus on the needs of those customers. That new managed services operating company will do business under the name 'Genuity,' a recognized leader in that market." [...]
2003 (Aug 19) - CenturyLink corporate news - Level 3 to Sell Midwest Fiber Optic Network Acquired in Genuity Transaction
2003 (Aug 19) - CenturyLink corporate news - Level 3 to Sell Midwest Fiber Optic Network Acquired in Genuity Transaction
This article is also located at [Genuity Incorporated (2000)]
BROOMFIELD, Colo., Aug. 19 /PRNewswire-FirstCall/ -- [Level 3 Communications, Incorporated] announced today that it has signed a definitive agreement to sell the Midwest Fiber Optic Network (MFON), a regional communications system it acquired through its recent transaction with Genuity [(Genuity Incorporated (2000))].
CenturyTel (NYSE: CTL) will purchase the stand-alone system, which serves as a regional backbone for a number of carriers, including CenturyTel itself, in Arkansas, Missouri and Illinois. The purchase price is approximately $17 million in cash, subject to adjustments including date of closure and system revenue at time of close. Closing is subject to regulatory approvals and customary conditions.
"This is a non-core asset for Level 3," said Sunit Patel, Level 3's chief financial officer. "While MFON currently generates approximately $1.5 million a month in revenue, the geography and architecture of the system do not offer us a practical or cost-effective way to integrate its operations into the Level 3 network. As such, we believe it makes sense to sell this business and continue to focus on the integration of the core assets, customers and traffic from the Genuity transaction."
Closing is expected to occur by the end of the fourth quarter of 2003.
Daniels & Associates, the Denver-based media and telecommunications mergers and acquisitions specialist, served as financial advisor to Level 3 on this transaction.
About Level 3 Communications : Level 3 (Nasdaq: LVLT) is an international communications and information services company. The company operates one of the largest Internet backbones in the world, is one of the largest providers of wholesale dial-up service to ISPs in North America and is the primary provider of Internet connectivity for millions of broadband subscribers, through its cable and DSL partners. The company offers a wide range of communications services over its 22,500-mile broadband fiber optic network including Internet Protocol (IP) services, broadband transport, colocation services, and patented Softswitch-based managed modem and voice services. Its Web address is www.Level3.com. The company offers information services through its subsidiaries, (i)Structure and Software Spectrum. For additional information, visit their respective web sites at www.softwarespectrum.com, and www.i-structure.com.
About CenturyTel : CenturyTel, Inc. provides communications services including local, long distance, Internet access and data services to more than 3 million customers in 22 states. The company, headquartered in Monroe, Louisiana, is publicly traded on the New York Stock Exchange under the symbol CTL, and is included in the S&P 500 Index. CenturyTel is the 8th largest local exchange telephone company, based on access lines, in the United States. Visit CenturyTel at www.centurytel.com.
Verizon Friday announced it has sold off BBN Technologies to the subsidiary's management team in conjunction with venture capital firm Accel Partners and private equity outfit General Catalyst. Terms of the deal weren't disclosed.
BBN, which was founded in 1948, came to Verizon by way of the merger of former BBN parent company GTE with Bell Atlantic in 2000. The GTE-Bell Atlantic combination became Verizon
R&D specialist BBN has cemented its place in network industry lore through its operation of ARPANET, a precursor of the Internet, and the first implementation of packet switching in 1969. More recently, the company has made advances on the security front in the area of quantum cryptography.
Never a huge self-promoter, the organization has been particularly quiet since becoming a Verizon unit. BBN lists just three 2003 press releases on its Web site, for instance.
The company will continue to be led by Tad Elmer, who has been president since 1999 and a member of the organization for more than 25 years.
Accel Managing Partner Jim Breyer said in a statement that the venture firm bought into BBN mainly to get access to its team. "These are simply people we wanted to be in business with," he said, noting how the company's penchant for technology innovations is in line with the kinds of start-ups Accel looks to fund.
Verizon said it is dealing BBN as part of its ongoing review of assets.
CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 12, 2005--BBN Technologies, a leading provider of advanced technology and research and development, announced today that [George Henry Conrades (born 1939)], executive chairman of [Akamai Technologies, Incorporated], has been appointed to BBN's Board of Directors. Mr. Conrades served as the CEO of [BBN Technologies, Incorporated] from 1994 to 1997.
"I'm delighted to join the Board of Directors of BBN Technologies, a highly respected organization renowned for developing innovative solutions to some of the world's most challenging problems," said Mr. Conrades. "It's a privilege to be reunited with BBN's world-class scientists and their excellent work."
“George brings to the BBN board an outstanding record of technology and business leadership together with a deep understanding of and appreciation for BBN's business, culture, and core values”
The BBN Board of Directors also includes: Tad Elmer, BBN's president and CEO; David Fialkow and Ken Novack, managing director and advisory board member of General Catalyst Partners, respectively; Jim Breyer and Kevin Efrusy of Accel Partners; and Anita K. Jones, the Lawrence R. Quarles Professor of Engineering & Applied Science, and Professor of Computer Science in the School of Engineering and Applied Science at the University of Virginia.
"George brings to the BBN board an outstanding record of technology and business leadership together with a deep understanding of and appreciation for BBN's business, culture, and core values," said Mr. Elmer. "His counsel will help us grow and prosper."
[George Henry Conrades (born 1939)] was named Chairman and Chief Executive Officer of Akamai in April 1999, bringing a broad range of business experience in the computing, Internet, telecommunications, and media industries. Mr. Conrades became Executive Chairman of Akamai in April 2005.
Before joining Akamai, Mr. Conrades was Executive Vice President and President of GTE Internetworking following the firm's acquisition of BBN Corporation in 1997. At [GTE Corporation], he was responsible for creating GTE Internetworking and leading GTE's rapid growth in the data and Internet business, including integrated telecommunications services.
From 1994 until GTE's acquisition of BBN, [George Henry Conrades (born 1939)] served as CEO of BBN, where he built BBN Planet into one of the industry's top-tier ISPs. BBN designed, built, and deployed the first four nodes of the ARPANET, the forerunner to today's Internet.
Mr. Conrades currently serves as a venture partner at Polaris Venture Partners, an early stage investment company.
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