Verizon Communications Inc Sharpens Strategic Focus and Returns Value to Investors With Transactions Valued at $15.54 Billion Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: David Barden - Bank of America - Analyst : Congrats on the transactions. Lowell, I know maybe this is something you want to kind of wait to talk about a little bit, but I think that people are going to look at the allocation of capital here and say that Verizon bought a certain amount of spectrum in the AWS-3 auction but it could have bought more. And instead of buying more spectrum which historically has been a huge priority for the Company, what it chooses to do instead is buy back stock, pay down debt and it's a pretty significant change, not just in positioning the Company but in terms of strategy overall. If you could kind of just address at least some part of that to kind of unravel that mystery a little bit it will be hugely helpful for us. And then I guess, Fran, I think the call that just ended with Frontier they were speaking about a lot of allocated costs that presumably are going to stay with Verizon post transaction. So we'd be thinking then about as we kind think about 2016 a lower starting point for the wireline margin for the business, but then as you kind of split the cost that kind of returns to the historical trajectory? Thanks.

Question: Simon Flannery - Morgan Stanley - Analyst : So, Lowell, you've talked before about other -- and Fran about other asset sales, maybe even looking at some -- breaking up some states, looking at maybe the more rural parts of the states that has real estate assets and other things. Are you pretty much done now apart from a little bit here or there, are you going to keep that portfolio or do you think there might be other opportunities down the road? And, Fran, I don't know if you can give us some sense of once you've done all the deals, done the ASR, what's the net impact to earnings per share, free cash flow per share. Thanks.

Question: Brett Feldman - Goldman Sachs - Analyst : Thanks. And just to kind of extend upon that because there were a lot of numbers that you gave on the call which was very helpful, just to kind of get to a bottom line, because these are profitable properties on a recurring basis will there be some net reduction in cash flows just at an absolute level? I know that you get some of that back on the buyback program. Any help you can give us there that would be greatly appreciated. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2015 / 10:15PM, VZ.N - Verizon Communications Inc Sharpens Strategic Focus and Returns Value to Investors With Transactions Valued at $15.54 Billion

Question: Brett Feldman - Goldman Sachs - Analyst : So you're basically saying that roughly in the year that it's going to take to close you should be able to get all your cost savings in place that on day one you are truly breakeven?

Question: Brett Feldman - Goldman Sachs - Analyst : Okay. And just one quick follow-up. I know you talked about the net cash on the deal. I didn't get the details. Is it a combination of taxes and other fees, how do we think about getting from gross cash to net cash?

Question: Michael Rollins - Citi Investment Research - Analyst : Hi, thanks. Two questions. First, how do you think about going forward from here, the continuity of trying to return more capital to shareholders above and beyond what the current dividend is set at? And then, secondly if I could just ask the question about the numbers, so if I hold these two presentations, Frontier's and yours side by side, you agree, it seems, roughly on the 2014 revenue. You're highlighting 2014 OIBDA for these wireline properties of $1.6 billion and Frontier is highlighting day one EBITDA at $2.31 billion. Why do you think they can run the same business so differently from a margin perspective and does that provide maybe some future opportunities for things that you could do in your business to try to raise the wireline margin profile over time? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 05, 2015 / 10:15PM, VZ.N - Verizon Communications Inc Sharpens Strategic Focus and Returns Value to Investors With Transactions Valued at $15.54 Billion

Question: Michael Rollins - Citi Investment Research - Analyst : Thanks very much.

Question: Mike McCormack - Jefferies - Analyst : Fran, just commenting on the FiOS areas that you sold, it looks like the penetration was quite high. Is it fair to say that those properties are probably some of the slower growing consumer properties? And then secondly, I guess for Lowell, the quick comment on Title II, just trying to get a better sense for what the message was there and how you thought about that throughout this process and this transaction?

Question: Kevin Smithen - Macquarie - Analyst : Thanks. I wondered if you're concerned about any financing risk on Frontier. They announced on their call that they'd be looking for based on their numbers $3 billion of equity in second and third quarter. Based in your numbers, it's probably more like $4 billion. Did you get offered equity in Frontier, how come you chose not to finance and take their stock and help them out?

Question: Kevin Smithen - Macquarie - Analyst : And the question sort of strategically going forward, you've talked a long time about convergence and we see Vodafone, your former partner, buying up cable assets in Europe. You're becoming much more of a pure play wireless company now pro forma. I guess how do you think about convergence and it has become more of a wireless player, it seems like the strategy has shifted a little bit off that convergence strategy?

Question: Kevin Smithen - Macquarie - Analyst : We should expect some more color on sort of Wi-Fi type agreements going forward and wholesaling others networks?

Question: Amir Rozwadowski - Barclays - Analyst : Sort of tying into the prior question on sort of the longer-term strategy here, certainly one of your competitors has made the comment that expanding their video presence provides an opportunity over the long term to reduce content costs as we're strategically looking towards mobile video as sort of the next leg of adoption and growth here. Conversely, you folks are refining your portfolio in terms of videos subscribers. Do you think that inherently could impact some of those costs over the longer term or do you feel pretty comfortable given the breadth of your portfolio, particularly taking into account your wireless subscribers?

Question: Amir Rozwadowski - Barclays - Analyst : Thank you very much. That's very helpful.

Question: Colby Synesael - Cowen & Company - Analyst : Two if I may. First off, just as it relates to VES, how strategic is that business to you when you look out over the long term? And then the second question is as it relates to the leverage, what's your comfort in terms of flexing that up in terms of potential for more buybacks? You mentioned the potential maybe to do some acquisitions, future spectrum acquisitions or even private deals. Where would you feel comfortable going recognizing I know you want to get down to that one notch improvement if you will in 2018, 2019? Thanks.

Question: Colby Synesael - Cowen & Company - Analyst : Thank you, gentlemen.