This is not your typical, former AT&T (NYSE: T) unit. Verizon (NYSE: VZ) is a modern, diverse telecom provider for the early digital age.

Verizon has three impressive divisions: landline, wireless, and business services. And the numbers speak for themselves: landline has an astounding 42.3 million subscribers in 28 states, Verizon Wireless is the second largest wireless provider, and business services is making inroads on medium/large enterprise customers and government agencies.

Further, in 2006 the company's fiber optic broadband/video service, FiOS, emerged as a major competitor to comparable cable broadband/video services: look for VZ to continue to grab market share in key markets, as the service is rolled-out in the years ahead. The Reuters F2007/F2008 EPS consensus estimates for VZ are $2.37/$2.71.

Analysts see continued strong margins in VZ's wireless/data operations, ramping broadband/video revenue, offset somewhat by attrition in landline subscribers.

New offerings: Look for Verizon to enhance its video offerings on the FiOS network - a service that could add a complementary revenue stream.

The qualifiers: An increasingly competitive mobile phone service landscape represents the biggest challenge, including the pressure to add services as consumers request more functions from their PDAs and next-generation handheld devices.

The First Call mean rating for VZ is: Hold. [32 firms.] Mean 2007 target: $47.50. [high: $52, low: $36.]

Stock Analysis: Verizon is moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from VZ's shares. Sell / Stop Loss: $28.