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Verizon 2Q07 VoIP update

• Estimated number of VoiceWing VoBB subscribers: 175k

• Access line lost to VoIP: Wireline revenues during 2Q07 decreased $137 million, compared to the similar period in 2006, driven by line reduction. A 7.8% decline in access lines in service from June 30, 2006. Residential retail access lines declined 9.2% at June 30, 2007 compared to June 30, 2006. At the same time, small business retail access lines declined 3.4% at June 30, 2007 compared to June 30, 2006. Line loss is obviously due to wireless substation as well.

• 26% growth in revenues from sales of services which includes business VoIP

• VoIP traffic: long distance traffic 6 billion to 8 billion minutes during 2Q07. VoIP traffic coming from its own network transformation plus previous MCI traffic. MCI was very aggressive in VoIP long distance

• 7.7 million broadband DSL and fiber customer lines at June 30, 2007

• 515,000 TV over fiber customers

• Known to be very aggressive with IMS rollout. On the wireless side, IMS deployments have advanced significantly.

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