Verizon Chairman and CEO Ivan Seidenberg told investors he sees sustainable shareholder value creation in 2006 and beyond, based on network investments that have produced product innovations, operational efficiencies and other competitive advantages for the company in the wireless, broadband and business markets.

Seidenberg said he is encouraged by the market acceptance of FiOS TV, the video offering supported by Verizon's advanced fiber-to-the-premises network. In Verizon’s first market -- Keller, Texas -- the company now has a market penetration of about 20 percent for FiOS TV since the service was launched in late September 2005. He added that Verizon continues to see strong demand and building momentum for all data services, including FiOS broadband and DSL services.

Seidenberg said that, besides being a catalyst for new products, Verizon’s fiber network is driving operational and productivity improvements that will enable the company’s wireline business to sustain margins.

Regarding deployment of FiOS, Seidenberg said that costs to pass a home or business continued to decline in 2005. He noted that he expects 2006 to be the peak year for total wireline capital spending, as the company’s capital expenditure mix continues to shift from legacy technologies to fiber and IP (Internet protocol).

To date, Verizon has passed 3 million homes or businesses in 16 states with its fiber deployment. The company previously announced that it would pass an additional 3 million in 2006, and the total of 6 million premises passed equates to approximately 20 percent of the homes and businesses in Verizon’s landline service territory. Seidenberg said he anticipates deployment rates at 2006 levels in the future. Verizon’s goal, previously announced, is to pass approximately 60 percent of the homes and businesses in its landline service territory with fiber.