Verizon Communications Inc.
Verizon Communications Inc. popularly known as “Verizon” is an American telecom giant headquartered in New York City. Major products and services offered by Verizon are fixed-line and cellular telephony, broadband and fixed line internet services, digital TV and network services, and global internet protocol backbone networks.
Industry Description
Verizon Communications is a major player in the following industries:
• Wired Telecom Carriers in the USA
This industry provides long distance and local voice communication services using the public switched telephone network. Industry operators also generate revenue by providing internet access and video services and by wholesaling access to their networks for a variety of purposes (IBISWorld report 51791a).
Company Market Share
AT&T Inc. 34.5%
Verizon Communications Inc. 23.1%
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Approximately 92% of total debt is on fixed rate basis, including the effect of interest rate swap agreements designated as hedges. Verizon Communications has entered into domestic and international interest rate swaps to achieve a targeted mix of fixed and variable rate debt.
Foreign Currency Translation
The functional currency for foreign operations is the local currency, therefore the company faces forex risk. The primary translation exposures are to British Pound Sterling, the Euro, the Australian Dollar and Japanese yen. To offset this risk Verizon Wireless has entered into currency swaps designated as cash flow hedges.
2. Unfavourable Economic Conditions
Unfavourable economic conditions, such as a recession in the United States could negatively affect the demand for majority of Verizon’s products and services. In poor economic conditions consumers can switch to cheaper products and services which can hamper sales.
3. Competition in the