User:VZEric/Expansion of services draft

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2011–present: Expansion of services[edit]

Verizon acquired Terremark, an information technology services company, for $1.4 billion in early 2011.[1]

Ivan Seidenberg retired as Verizon's CEO on August 1, 2011, and was succeeded by Lowell McAdam.[2]

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.[3] 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.[4]

Verizon purchased Hughes Telematics, a producer of wireless features for automobiles, for $612 million in June 2012 as part of its strategy to expand into new growth areas in its wireless business.[5] 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.[6] The FCC conducted an investigation[6] 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,[7] although the FCC indicated that Verizon still needed to make additional improvements.[8]

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 2012 settlement, Verizon made a voluntary payment of $1.25 million to the U.S. Treasury.[9]

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.[10] Verizon began expanding its LTE network utilizing these extra airwaves in October 2013.[11]

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.[12][13] Verizon Wireless was not part of the NSA data collection for wireless accounts due to foreign ownership issues.[14]

Verizon purchased Vodafone's 45% stake in Verizon in September 2013 for $130 billion.[15] The deal closed on February 21, 2014, and became the third largest corporate deal ever signed, giving Verizon Communications sole ownership of Verizon Wireless.[16]

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.[17][18] 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.[19]

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.[20] 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."[21]

Verizon Wireless launched the technology news website SugarString in October 2014. 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.[22][23]

In August 2015, Verizon launched Hum, a service and device offering vehicle diagnostic and monitoring tools for vehicles.[24] 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.[25] On September 12, 2016, Verizon announced its acquisition of Sensity, a startup for LED sensors, in an effort to bolster its IoT portfolio.[26] A few months later, Verizon acquired mapping startup SocialRadar, whose technology would be integrated with MapQuest.[27]

Verizon was accused by Communications Workers of America of deliberately refusing to maintain its copper telephone service in 2016. 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, instead of repairing 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 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".[28][29]

Verizon added to its fiber-optic network and 5G capabilities in February 2017 when it closed its $1.8 billion acquisition of XO Communications' fiber-optic network business.[30] Verizon and Corning announced a deal in April 2017 whereby Verizon would purchase 12.4 million miles of optical fiber per year from Corning from 2018 through 2020.[30] Months later, Verizon purchased WideOpenWest’s fiber-optic assets in the Chicago market for $225 million.[31]

Also in 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.[32]

Verizon Connect was created in 2018, combining the individual Telematics, Fleetmatics, and Telogis units.[33][34][35]

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."[36]

Verizon underwent structural and organizational changes from 2018–2019. Hans Vestberg succeeded Lowell McAdam as CEO on August 1, 2018.[37][38] Vestberg's strategy focused on Verizon's 5G technology.[38] In early 2019, Verizon reorganized itself into three new divisions—Consumer, Business and Media.[38][39]

Verizon began offering anti-spam and robocalling features free of charge to all customers beginning in March 2019.[40][41]

Verizon began rolling out its 5G mobile network in April 2019; the network was active in 30 cities by the end of the year.[42][43] Verizon uses millimeter-wave (mmWave) spectrum as part of its 5G network.[44] While capable of very high speeds, mmWave has limited range and poor building penetration.[45][46]

On January 14, 2020, Verizon announced the launch of its privacy-focused search engine OneSearch.[47][48]

Verizon acquired videoconferencing service BlueJeans in May 2020 in order to expand its business portfolio offerings, particularly its unified communications offerings. While the price of the acquisition was not announced, it was believed to be in the sub $500 million range.[49]

In September 2020, Verizon announced its plans to acquire TracFone Wireless (a business unit of Mexican telecom business, America Movil) for $6.25 billion.[50] The deal was approved by the FCC on November 22, 2021 and closed the following day.

Verizon more than doubled its existing mid-band spectrum holdings in early 2021 by adding an average of 161 MHz of C-Band nationwide, purchased for $52.9 billion at an FCC C-Band auction. The company won between 140 and 200 MHz of C-Band spectrum in every available market.[51]

Acquisition of AOL and Yahoo[edit]

Service van with Verizon's former logo and livery

Verizon acquired AOL in 2015 at $50 per share, for a deal valued around $4.4 billion.[52][53] The following year, Verizon announced it would acquire the core internet business of Yahoo! for $4.83 billion.[54][55][56] Following the completion of the acquisitions, Verizon created a new division called Oath, which includes the AOL and Yahoo brands.[57] The sale did not include Yahoo's stakes in Alibaba Group and Yahoo! Japan.[58][59]

Verizon CEO Lowell McAdam in 2017 confirmed the company plans to launch a streaming TV service.[60] The integrated AOL-Yahoo operation, housed under the newly created Oath division, would be organized around key content-based pillars.[61]

Verizon completed its acquisition of Yahoo for $4.48 billion on June 13, 2017.[62]

Verizon sold its media group, including AOL and Yahoo, to Apollo Global Management for $5 billion in 2021,[63] with Verizon retaining a 10% stake in the division.[64]

References[edit]

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  2. ^ Svensson, Peter (July 22, 2011). "Verizon CEO Ivan Seidenberg Steps Down; Lowell McAdam Takes Helm". The Huffington Post. Archived from the original on March 18, 2014. Retrieved November 27, 2013.
  3. ^ Portero, Ashley (December 9, 2011). "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008–2010". International Business Times. Archived from the original on January 7, 2012. Retrieved December 26, 2011.
  4. ^ "Verizon Form 10-K". Archived from the original on June 9, 2012. Retrieved February 29, 2012.
  5. ^ de la Merced, Michael J. (2012-06-01). "Verizon to Buy Hughes Telematics for $612 Million". DealBook. The New York Times. Archived from the original on July 9, 2017. Retrieved 2019-02-27.
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  30. ^ Buckley, Sean (December 14, 2017). "Verizon wraps its acquisition of WideOpenWest's Chicago fiber assets". FierceTelecom. Retrieved July 25, 2022.
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  33. ^ Moritz, Scott; Coppola, Gabrielle (10 April 2018). "Telecom Giants Fear Missing the Money as Cars Go Online". Bloomberg LP. Archived from the original on May 13, 2018. Retrieved 8 May 2018.
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  38. ^ Dang, Sheila (November 5, 2018). "Verizon to reorganize business segments". Reuters. Archived from the original on November 8, 2020. Retrieved July 29, 2019.
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  40. ^ Van Dinter, Steve (2019-01-17). "Verizon to Robocallers". Archived from the original on January 21, 2019. Retrieved January 21, 2019.
  41. ^ Haselton, Todd (2019-04-03). "Verizon begins rolling out its 5G wireless network for smartphones". CNBC. Retrieved 2020-02-26.
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  43. ^ Sherman, Alex; Haselton, Todd (2020-01-09). "There are three types of 5G — most of what you'll get is not the super-fast kind". CNBC. Retrieved 2020-02-26.
  44. ^ Al-Falahy, Naser; Alani, Omar (November 2018). "Millimetre wave frequency band as a candidate spectrum for 5G network architecture: A survey" (PDF). Physical Communication. 32: 120–144. doi:10.1016/j.phycom.2018.11.003. S2CID 67794058.
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  49. ^ Reuters
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  62. ^ "Yahoo sold again in new bid to revive its fortunes". BBC News. 2021-05-03. Retrieved 2021-05-07.
  63. ^ Kovach, Steve (2021-05-03). "Verizon sells media businesses including Yahoo and AOL to Apollo for $5 billion". CNBC. Retrieved 2021-05-07.
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