Our results in 2010 reflect the fundamental strength of our company. Revenues grew 1.9 percent on a comparable basis for the year, the second straight year of positive revenue growth in a very sluggish economy. Our growth was propelled by strong performance in wireless, broadband and strategic business services, and our results improved in the second half of the year, giving us good momentum entering 2011. Our cash-flow performance was particularly strong in 2010. We generated $33.4 billion in operating cash flow and grew free cash flow by 16.4 percent. Combined with the proceeds from our sale of some non-strategic assets, this enabled us to invest $16.5 billion in our advanced networks, pay $5.4 billion in dividends and reduce net debt by $14.1 billion. The Board of Directors showed its confidence in future cash flows by voting in September to raise our dividend by 2.6 percent – the fourth increase in as many years – to $1.95 a share on an annual basis. We also completed the spin-off of some rural telephone properties to Frontier, which yielded $1.85 per share in value for shareowners.

Verizon's strategic position is anchored by our sustained investment in superior network technology. We continued to push that envelope in 2010, embedding ourselves even more deeply in the high-tech sector of the economy. Our nationwide third-generation wireless network is consistently rated the nation's best in quality and reliability. With this competitive edge, we have captured a significant share of the fast-growing wireless market over the last several years and have introduced a wide array of wireless data services and products, including most recently the iPhone 4. In December we launched our fourth-generation wireless network in about one-third of the U.S. and will expand it across the country over the next three years, giving us a premier position in the explosive wireless data marketplace and setting the stage for a new phase of growth for Verizon. Our all-fiber FiOS network is now available to 15.6 million homes and is bar none the fastest, highest-quality broadband network in the country. FiOS gives us an unparalleled platform for delivering the flood of high-definition video content that makes up a rapidly growing portion of the Internet. We also continued to globalize our company by enhancing our high-speed Internet backbone, which serves six continents and close to 160 countries worldwide. Furthermore, we're adding to our extensive network of data centers to position ourselves for the emerging market for "cloud" services, in which content, customer data, security, IT services and more will be stored in the network and made available on-demand to customers wherever they are.

Chairman's Letter Continued …