Verizon FiOS

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More Channels, More Choices, More Value! David
O. Russell Sept. 22, 2006

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FiOS Overview

• What is FTTP?
• What is FiOS?
• Broadband Review
• FiOS TV in Detail
• Texas Legislation
• Next Steps

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Transforming BroadbandFTTP Full Build Overlay
Architectures
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Video Architecture
Long Haul Network
IP Network/Internet
SHE
Servers
VHO
Medium Haul Network
VSO
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What is Verizon FiOS?

• FiOS is a platform today for
• exciting opportunities tomorrow
• Cutting-edge, fiber-optic technology
• Internet access, voice services, and digital TV
• Great new choices in next generation services
• Lightning-quick digital movie downloads
• Efficient, productive telecommuting
• HDTV capabilities
• Multi-player online gaming

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The Power of FiOS
Super-fast connectivity
Dial-upUp to 56K
CableUp to 4Mbps
FiOSUp to 30Mbps
Actual download and upload speeds will vary based
on numerous factors, such as the condition of
wiring at your location, computer configuration,
Internet and network congestion, and the speed of
website servers you access, among other factors.
Speed and uninterrupted use of the service are
not guaranteed.
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The Best Value in Broadband

• FiOS High-speed Internet Services
• And these package also include
• 9 e-mail addresses
• Free installation including wired router or
  discounted wireless router.
• Personal Web space of up to 10 Mb of storage with
  a Web building tool
• MSN Premium software at no additional charge
• Special offers on movies, music, games and
  software
• 24/7 Technical Support

Promotional pricing with the purchase of
qualifying Verizon voice products. Offer subject
to change.
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Great Value for the Consumer

• 100 digital, high fidelity audio
• Over 400 channels
• 25 HD channels
• 100 VOD capable
• 2500 VOD titles
• Multi-room 120 hour DVR
• Advanced IPG
• Spanish-language tier, International channels
• Simple, compelling packaging
• Genre-based channel line-up

and Itll Keep Getting Better
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FiOS TV Packaging
Strategy Deliver more channels, more choices
and more value than cable or satellite.

• Basic Service 24-30 Channels
• Analog or Digital
• Local Broadcast Stations
• Weather Channels
• Community Channels
• Video On Demand
• Expanded Basic 180 Channels
• 100 Digital
• 24-30 Basic Channels
• 100 Additional Channels
• 47 Music Channels
• Up to 25 HDTV Channels
• Video On Demand

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Video On Demand Pay Per View

• Transactional Video on Demand- 300 titles/month
  (450 hours/month)- Studio movies (Sony, Fox,
  Universal, Paramount, MGM, DreamWorks, Artisan,
  New Line, Disney, WB)
• Subscription Video on Demand- 450 titles/month
  (675 hours/month)- HBO, Cinemax, Starz, Encore,
  Showtime, The Movie Channel, Sundance, IFC
• PPV Events and Sports- MLB, NBA, NASCAR, MLS,
  NHL, ESPN GamePlan, ESPN Full Court, Wrestling,
  Boxing, WWE, etc.

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FiOS TV A Better Value
More Channels, More Choices, More Value
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Benefits to Communities

• Every dollar invested by Verizon in its broadband
  network brings 3 back to the community in
  economic activity
• Increased local, regional and national visibility
• And, every telecom job created by Verizons
  capital investment creates four additional jobs
  in other companies
• Next-generation communications infrastructure
  that will attract residents and businesses

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Details of the Texas Legislation

• State-issued (Public Utility Commission) cable
  and video franchising with the provider defining
  geography to be served
• No build-out requirement
• Franchise fee equals 5 of Gross Revenue in
  incorporated areas
• Grandfathers existing PEG channels and provides
  for 2 or 3 channels, depending on population, for
  municipalities that dont currently have PEG
  channels
• Federal non-discrimination language
• Compliance with customer service
  standards until there are 2 or more wireline
  providers
• New entrant must pay the same cash in-kind as
  incumbent until expiration of incumbents
  contract and, at the option of the city, 1 Gross
  Revenue or the previous per subscriber fee

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FiOS is Future-Proof
MBPS 10 20 30 40 50 60 70
80 90 100
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Verizon FiOS
See the light Thank you to the Texas
Association of Telecommunications Officers and
Advisors