Bell Atlantic and mergers with NYNEX, GTE and Vodafone (1984–2002) In 1983, the US Department of Justice came to a settlement with
the original AT&T to break up the Bell System. Bell Atlantic Corporation was created as one of the original "
Baby Bell" Regional Bell Operating Companies (RBOCs) in 1984. Bell Atlantic's original roster of operating companies included: •
The Bell Telephone Company of Pennsylvania •
New Jersey Bell •
Diamond State Telephone •
C&P Telephone In 1996, CEO and Chairman Raymond W. Smith orchestrated Bell Atlantic's merger with fellow Baby Bell
NYNEX, which had received
New York Telephone and
New England Telephone in the breakup. When it merged, it moved its corporate headquarters from Philadelphia to New York City. In April 2000, two months before the
Federal Communications Commission (FCC) gave final approval on the formation of Verizon Communications, Bell Atlantic formed
Verizon Wireless in a
joint venture with the British telecommunications company
Vodafone, which owned the mobile operator
AirTouch. The companies established Verizon Wireless as its own business operated by Bell Atlantic, which owned 55% of the venture. Due to its size, Verizon Wireless was able to offer national coverage at competitive rates, giving it an advantage over regional providers typical of the time. The name Verizon derives from the combination of the words '''', Latin for truth, and
horizon. The approval came with 25 stipulations to preserve competition between local phone carriers, including investing in new markets and
broadband technologies. The company also inherited 25 million mobile phone customers. The strike affected quarterly revenues, resulting in Verizon Wireless's postponement of the company's initial public offering (IPO) and created a backlog of repairs. In August 2002, Verizon began offering local, long-distance, and mobile calling, as well as Internet service, in a
bundle. It was initially only available to customers in New York and Massachusetts.
Early expansion (2003–2010) The
Dow Jones Industrial Average added Verizon Communications to its
stock market index in April 2004. Verizon replaced telecom competitor AT&T, which had been a part of the index since the
Great Depression. The company launched Fios TV in September 2005, also in Keller. Twenty percent of qualified homes had signed up by the end of 2004. By January 2006, Fios offered over 350 channels in seven states, including 20
high-definition television channels and
video on demand. The move was criticized by its customers for disrupting their communications without notice, causing them to initiate a class-action lawsuit. Verizon proposed a settlement in April 2006. Beginning in 2005, Verizon reinforced its focus on its mobile phone, Internet, and TV businesses by selling a number of its U.S.-based wireline-focused businesses and international assets. and
spun off lines in Maine, New Hampshire and Vermont in January 2007, which were then purchased by
FairPoint Communications for $2.72 billion. Verizon also shed its telephone directory business in 2006. In May 2009, the company spun off wirelines in
Arizona,
Idaho,
Illinois,
Indiana,
Michigan,
Nevada,
North Carolina,
Ohio,
Oregon,
South Carolina,
Washington,
West Virginia, and
Wisconsin into a company that then merged with
Frontier Communications in a deal valued at $8.6 billion. It sold its interests in telecommunications providers in the Dominican Republic (Verizon Dominicana, previously
CODETEL), Puerto Rico and Venezuela to
América Móvil. A decade later, it would continue moves to invest in wireless. In 2015,
American Tower Corp. acquired the exclusive right to lease, acquire or otherwise operate and manage many of Verizon's wireless towers for an upfront payment of $5.1 billion, which also included payment for the sale of approximately 165 towers. Verizon used the funds from this sale to support a $10.4 billion purchase of AWS-3 spectrum licenses at an FCC auction. In 2016, Verizon sold its wireline operations in Texas, Florida, and California to Frontier. Verizon began negotiations in 2005 to purchase long-distance carrier
MCI, who accepted the company's initial $6.75 billion offer in February but then received a higher offer from
Qwest Communications. Verizon increased its bid to $7.6billion, which MCI accepted on March 29, 2005. The
acquisition gave the company access to MCI's million corporate clients and international holdings, expanding Verizon's presence into global markets. As a result, Verizon Business was established as a new division to serve the company's business and government customers. The FCC approved the deal on October 31, 2005, valuing it at $8.5 billion. Verizon's 2006 revenues rose by as much as 20% following the purchase. That same month, a $50 billion lawsuit was filed by two lawyers on behalf of all Verizon subscribers for privacy violations and to prevent the company from releasing additional records without consent or warrant. In 2007, Verizon stated that it fulfilled only "lawful demands" for information, but also acknowledged surrendering customer information to government agencies without court orders or
warrants 720 times between 2005 and 2007. Verizon won a lawsuit against
Vonage for
patent infringement in March 2007. The three patents named were filed by Bell Atlantic in 1997, and relate to the conversion of IP addresses into phone numbers, a key technology of Vonage's business. Vonage later lost an appeal and was ordered to pay Verizon $120 million. In May 2007, Verizon acquired
CyberTrust, a privately held provider of global information security services. In September 2007, Verizon Wireless reversed a controversial decision to deny
NARAL Pro-Choice America a short code through which the organization could
text consumers who had signed up for messaging from the group. The company had initially refused the group access to a code by reserving the right to block "controversial or unsavory" messages. Verizon opened its networks to third party
apps and devices for the first time in 2007, a decision that allowed it to participate in the FCC's
2008 700 MHz auction of "open access" spectrum. Verizon utilized the increased spectrum for its 4G service. Verizon acquired Rural Cellular Corp. for $2.7 billion in cash and assumed debt in 2008. That summer, Verizon announced it would purchase wireless carrier
Alltel for $28.1 billion. The acquisition included 13 million customers, which allowed Verizon Wireless to surpass AT&T in number of customers and reach new markets in rural areas.
4chan began receiving reports on February 4, 2010, from Verizon Wireless customers that were having difficulties accessing the site's image boards. Administrators of the site found that only traffic on port 80 to the boards.4chan.org domain was affected, leading them to believe the block was intentional. On February 7, 2010, Verizon Wireless confirmed that 4chan.org was "explicitly blocked" after Verizon's security and external experts detected sweep attacks coming from an IP address associated with the 4chan network. Traffic was restored several days later. The chairmen of Verizon and Google agreed that
network neutrality should be defined and limited in August 2010. In October 2010, Verizon Wireless paid $77.8 million in refunds and FCC penalties for overcharging 15 million customers for data services. The company stated the overcharges were accidental and only amounted to a few dollars per customer. Verizon introduced its 4G
LTE network in 38 markets, as well as airports in seven additional cities in December 2010. The company planned on a three-year continuous expansion of the
4G service.
Expansion of services (2011–present) Verizon acquired
Terremark, an information technology services company, for $1.4 billion in early 2011. Ivan Seidenberg retired as Verizon's CEO on August 1, 2011, and was succeeded by
Lowell McAdam. 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. 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. 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. 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. The FCC conducted an investigation although the FCC indicated that Verizon still needed to make additional improvements. 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. 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. Verizon began expanding its LTE network utilizing these extra airwaves in October 2013.
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
National Security Agency (NSA) with telephone
metadata for all calls originating in the U.S. Verizon Wireless was not part of the NSA data collection for wireless accounts due to foreign ownership issues. Verizon purchased Vodafone's 45% stake in Verizon in September 2013 for $130 billion. The deal closed on February 21, 2014, and became the third largest corporate deal ever signed, giving Verizon Communications sole ownership of Verizon Wireless. 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. 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. 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. 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." 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. In May 2015, cybersecurity researcher Blake Welsh disclosed a flaw in Verizon's systems that left millions of home internet users vulnerable to account information leaks. In August 2015, Verizon launched
Hum, a service and device offering vehicle diagnostic and monitoring tools for vehicles. 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. On September 12, 2016, Verizon announced its acquisition of Sensity, a startup for
LED sensors, in an effort to bolster its
IoT portfolio. A few months later, Verizon acquired mapping startup SocialRadar, whose technology would be integrated with
MapQuest. 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". Verizon was reported to be in talks with
Charter Communications in January 2017 to discuss a possible buyout. Charter reportedly rejected the deal around the end of May 2017, citing that the offer was too low for them to accept, and its largest shareholder
Liberty Media stated that they were not ready to sell. 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. Verizon and
Corning Inc. announced a deal in April 2017 whereby Verizon would purchase 12.4millionmiles of optical fiber per year from Corning from 2018 through 2020. 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. was created in 2018, combining the individual Telematics, Fleetmatics, and
Telogis units. 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." Verizon underwent structural and organizational changes from 2018 to 2019. Hans Vestberg succeeded Lowell McAdam as CEO on August 1, 2018. Verizon began offering anti-spam and robocalling features free of charge to all customers beginning in March 2019. Verizon began rolling out its
5G mobile network in April 2019; the network was active in 30 cities by the end of the year. Verizon uses
millimeter-wave (mmWave) spectrum as part of its 5G network. While capable of very high speeds, mmWave has limited range and poor building penetration. On January 14, 2020, Verizon announced the launch of its privacy-focused
search engine OneSearch. 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. In September 2020, Verizon announced its plans to acquire
TracFone Wireless (a business unit of Mexican telecom business,
América Móvil) for $6.25 billion. The deal was approved by the FCC on November 22, 2021, and closed the following day. In 2021, Verizon and
AT&T delayed
5G network deployment because the service could interfere with airplane
cockpit security systems. In early January 2022, the companies announced 5G deployment but agreed to a two-week delay. In mid-January, Verizon said the high-speed wireless service would still launch, but with a temporary restriction around airports. In late January 2022, the
Federal Aviation Administration agreed with AT&T and Verizon on a list of measures that would make it possible to activate 5G on more towers. As a result, carriers have been able to pinpoint areas around airports where the 5G signal should be attenuated, and the FAA reported that about 90% of US commercial aircraft are equipped with approved radio
altimeters, allowing them to land in areas of poor visibility with a deployed 5G network. The agency also said work is continuing to ensure that all aircraft can operate within range of the service. Verizon more than doubled its existing mid-band spectrum holdings in early 2021 by adding an average of 161MHz of
C-Band nationwide, purchased for $52.9billion at an FCC C-Band auction. The company won between 140 and 200MHz of C-Band spectrum in every available market. In December 2023, Verizon announced plans to open a new global center of excellence in
Limerick, Ireland, in early 2024, aiming to create over 400 jobs in the next two years. This expansion, which adds to its existing workforce of 1,000 employees in Dublin, will offer various positions in technology and communications, including financial operations and network engineering. In May 2024 Verizon announced a partnership to access direct-to-cell capabilities with satellite manufacturer
AST SpaceMobile, which will improve cellular and broadband access in remote areas of the United States. On September 5, 2024, Verizon announced its intent to acquire Frontier in an all-stock deal for $38.50 per-share, valuing the company at $20 billion. Vestberg stated that the proposed acquisition was a "strategic fit" to expand its fiber network. On May 16, 2025, the Federal Communications Commission approved the acquisition. In January 2026, the
California Public Utilities Commission approved the proposed acquisition of Frontier, subject to a series of regulatory conditions relating to affordability, service quality, infrastructure investment, and workforce and supplier diversity. The approval (following the FCC's approval in May 2025) cleared a major remaining regulatory hurdle for the acquisition. The acquisition was completed on January 20, 2026. In May 2025, Verizon announced that they would end diversity, equity and inclusion programs after the Trump administration opened a probe into them. On October 6, 2025, the company announced the appointment of
Dan Schulman as its new chief executive.
Acquisition of AOL and Yahoo Verizon acquired
AOL in 2015 at $50 per share, for a deal valued around $4.4 billion. The following year, Verizon announced it would acquire the core internet business of
Yahoo! for $4.83billion. Following the completion of the acquisitions, Verizon created a new division called Oath, which includes the AOL and Yahoo brands. Verizon CEO Lowell McAdam in 2017 confirmed the company plans to launch a streaming TV service. The integrated AOL-Yahoo operation, housed under the newly created Oath division, would be organized around key content-based pillars. Verizon completed its acquisition of Yahoo for $4.48 billion on June 13, 2017. Verizon sold its media group, including AOL and Yahoo, to
Apollo Global Management for $5 billion in 2021, with Verizon retaining a 10% stake in the division. == Finances ==