Verizon Positioned as a Leader in 2010 U.S. Telecom Service Providers Magic Quadrant

BASKING RIDGE, N.J. – December 2, 2010 –

Gartner Inc. has positioned Verizon in the Leaders quadrant of the analyst firm's new report, "Magic Quadrant for U.S. Telecommunications Service Providers."¹  Gartner examined 10 U.S.-based telecommunications service providers that offer wired or wireless service, or both.

Companies are positioned in the Leaders quadrant based on ability to execute and completeness of vision.

"Our advanced wireline and wireless networks are the essential platform for the solutions we deliver to enable better business outcomes for enterprises and government agencies worldwide," said Anthony Recine, Verizon vice president of networking and communications solutions.  "This world-class foundation is a key Verizon differentiator, especially as we execute our 'everything-as-a-service' strategy, delivering cloud-based infrastructure and software solutions to create new IT delivery models for our customers."

About The Magic Quadrant
The Magic Quadrant is copyrighted 2010 by Gartner, Inc. and is reused with permission.  The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Verizon Communications
Verizon Communications Inc. (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 93 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of more than 195,000 and last year generated consolidated revenues of more than $107 billion. For more information, visit www.verizon.com.

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¹ Magic Quadrant for U.S. Telecommunications Service Providers, Ted Chamberlin and Phillip Redman, November 3, 2010

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To Slow Piracy, Internet Providers Ready Penalties - New York Times

After years of negotiations with Hollywood and the music industry, the nation’s top Internet providers have agreed to a systematic approach to identifying customers suspected of digital copyright infringement and then alerting them via e-mail or other means.

Under the new process, which was announced Thursday, several warnings would be issued, with progressively harsher consequences if the initial cautions were ignored.

The companies took pains to say that the agreement did not oblige Internet providers to shut down a repeat offender’s account, and that the system of alerts was meant to be “educational.” But they noted that carriers would retain their right to cut off any user who violated their terms of service.

In bringing together the media companies and Internet carriers, the deal demonstrates how the once-clear line separating those two businesses has been blurred. Eight years ago, the Recording Industry Association of America had to sue Verizon to try to uncover the identity of a customer who was sharing music online. This year, Comcast completed its merger with NBC, bringing an owner of digital content and a conduit for it under the same roof.

Now the Internet providers are hoping to profit as they pipe music and video of the nonpirated variety to their customers.

“The I.S.P.’s want to cooperate with Hollywood because the carriers recognize that their own growth depends in part on bundled content strategies,” said Eric Garland of BigChampagne, which tracks online media traffic. “They don’t want to be just utilities providing Internet access, but premium content distributors as well.”

The system announced on Thursday involves a series of six warnings that an Internet provider can send to a customer whom the media companies have identified as a possible copyright infringer.

The warnings escalate from simple e-mail notifications to, at levels 5 and 6, a set of “mitigation measures,” like reduced connection speeds or a block on Web browsing. As the alerts progress, a customer must acknowledge that he understands the notice. Customers will also have the opportunity to contest the complaint.

The effect on consumers, the companies hope, will be more of a deterrent-by-annoyance — rather than the random lightning bolt of litigation that was once the preferred method of enforcement by the recording industry association, one of the parties to the agreement.

The media companies were also represented by the Motion Picture Association of America and groups acting on behalf of independent record companies and filmmakers. The Internet carriers involved in the deal include AT&T, Cablevision, Comcast, Verizon and Time Warner Cable.

The music and movie companies, which estimate that digital piracy costs the United States economy $16 billion in lost revenue each year, have been eager for an efficient way to deal with the problem.

As illegal downloading has become ingrained as a cultural habit, especially among young people, expensive litigation has become less effective, and the lawsuits against individuals were something of a public relations disaster for the music companies. The new deal, the companies say, offers plenty of chances for even the most recalcitrant pirates to reform.

“This is a sensible approach to the problem of online content theft and, importantly, one that respects the privacy and rights of our subscribers,” Randal S. Milch, executive vice president and general counsel for Verizon, said in a statement.

The agreement has an unlikely origin: it came about as a result of an effort to crack down on child pornography that was led by Andrew M. Cuomo while he was the New York attorney general.

Steve Lohr contributed reporting.

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