<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            ______________________

                                   FORM 10-Q
                            ______________________


        (Mark one)
            [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                         OF THE SECURITIES EXCHANGE ACT OF 1934
                    For the quarterly period ended March 31, 2001

                                      OR

            [ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                        OF THE SECURITIES EXCHANGE ACT OF 1934
                    For the transition period from      to


                          Commission file number 1-3090


                              VERIZON FLORIDA INC.


    A Florida Corporation    I.R.S. Employer Identification No. 59-0397520


        1095 Avenue of the Americas, Room 3868, New York, New York 10036


                         Telephone Number (212) 395-2121


       Former Address: 1255 Corporate Drive, SVC04C08, Irving, Texas 75038

                            ______________________

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH REDUCED DISCLOSURE
FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X   No
                                      ----   ----
<PAGE>

                              Verizon Florida Inc.

                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME


<TABLE>
<CAPTION>
                                                                                          Three Months Ended March 31,
                                                                              -------------------------------------------------
(Dollars in Millions) (Unaudited)                                                          2001                     2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>                      <C>
OPERATING REVENUES
    (including $.2 and $0 from affiliates)                                                 $436.6                   $407.1
                                                                                -----------------------------------------------

OPERATING EXPENSES
Operations and support (including $44.8 and $51.6 to affiliates)                            226.0                    223.0
Depreciation and amortization                                                                81.2                     90.8
                                                                                -----------------------------------------------
                                                                                            307.2                    313.8
                                                                                -----------------------------------------------

OPERATING INCOME                                                                            129.4                     93.3

OTHER INCOME AND (EXPENSE), NET
    (including $14.2 and $22.6 from affiliate)                                               14.2                     22.9

INTEREST EXPENSE
    (including $24.0 and $48.0 to affiliate)                                                 33.6                     40.2
                                                                                -----------------------------------------------

Income before provision for income taxes                                                    110.0                     76.0

PROVISION FOR INCOME TAXES                                                                   43.7                     29.5
                                                                                -----------------------------------------------

NET INCOME                                                                                 $ 66.3                   $ 46.5
                                                                                ===============================================
</TABLE>

            See Notes to Condensed Consolidated Financial Statements.

                                       1
<PAGE>

                             Verizon Florida Inc.

                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                     ASSETS
                                     ------

<TABLE>
<CAPTION>

(Dollars in Millions) (Unaudited)                                                      March 31, 2001        December 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                              <C>                     <C>
CURRENT ASSETS
Cash                                                                                           $   80.5                $   71.9
Short-term investments                                                                             48.4                    54.2
Accounts receivable:
    Trade and other, net of allowances for uncollectibles of $29.0 and $27.7                      302.2                   289.9
    Affiliates                                                                                     34.3                    27.7
Notes receivable from affiliates                                                                1,189.1                   884.7
Material and supplies                                                                              26.1                    19.8
Prepaid expenses                                                                                    6.5                    52.4
Deferred income taxes                                                                              12.1                    10.6
Other                                                                                              48.9                    33.5
                                                                                   ----------------------------------------------
                                                                                                1,748.1                 1,444.7
                                                                                   ----------------------------------------------

PLANT, PROPERTY AND EQUIPMENT                                                                   5,081.2                 4,998.6
Less accumulated depreciation                                                                   3,152.9                 3,077.3
                                                                                   ----------------------------------------------
                                                                                                1,928.3                 1,921.3
                                                                                   ----------------------------------------------

PREPAID PENSION ASSET                                                                             408.0                   398.8
                                                                                   ----------------------------------------------

OTHER ASSETS                                                                                      107.5                   127.0
                                                                                   ----------------------------------------------

TOTAL ASSETS                                                                                   $4,191.9                $3,891.8
                                                                                   ==============================================
</TABLE>

           See Notes to Condensed Consolidated Financial Statements.

                                       2
<PAGE>

                             Verizon Florida Inc.

                      CONDENSED CONSOLIDATED BALANCE SHEETS


                     LIABILITIES AND SHAREOWNER'S INVESTMENT
                     ---------------------------------------

<TABLE>
<CAPTION>

(Dollars in Millions) (Unaudited)                                                        March 31, 2001    December 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                             <C>                    <C>
CURRENT LIABILITIES
Debt maturing within one year:
    Note payable to affiliate                                                                   $1,409.2               $1,173.3
    Other                                                                                            2.2                    2.2
Accounts payable and accrued liabilities:
    Affiliates                                                                                      71.4                   85.0
    Other                                                                                          184.9                  159.3
Other liabilities                                                                                  132.3                  106.3
                                                                                    ---------------------------------------------
                                                                                                 1,800.0                1,526.1
                                                                                    ---------------------------------------------

LONG-TERM DEBT                                                                                     890.0                  890.0
                                                                                    ---------------------------------------------

EMPLOYEE BENEFIT OBLIGATIONS                                                                       264.6                  247.5
                                                                                    ---------------------------------------------

DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes                                                                              264.2                  263.9
Other                                                                                               84.9                  102.5
                                                                                    ---------------------------------------------
                                                                                                   349.1                  366.4
                                                                                    ---------------------------------------------

SHAREOWNER'S INVESTMENT
Common stock $25 par value per share                                                               585.0                  585.0
  Authorized shares:   50,000,000
  Outstanding shares:  23,400,000
Contributed capital                                                                                176.0                  175.9
Reinvested earnings                                                                                127.2                  100.9
                                                                                    ---------------------------------------------
                                                                                                   888.2                  861.8
                                                                                    ---------------------------------------------

TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT                                                   $4,191.9               $3,891.8
                                                                                    =============================================
</TABLE>

           See Notes to Condensed Consolidated Financial Statements.

                                       3
<PAGE>

                             Verizon Florida Inc.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                               Three Months Ended March 31,
                                                                                    -------------------------------------------
(Dollars in Millions) (Unaudited)                                                              2001                  2000
-------------------------------------------------------------------------------------------------------------------------------

<S>                                                                                          <C>                    <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                                                    $ 199.0                $ 162.0
                                                                                    -------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments                                                             5.8                    ---
Capital expenditures                                                                           (92.5)                 (85.0)
Net change in notes receivable from affiliate                                                 (304.4)                 512.7
Other, net                                                                                       4.7                    (.1)
                                                                                    -------------------------------------------
Net cash (used in)/provided by investing activities                                           (386.4)                 427.6
                                                                                    -------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Preferred stock retired, including premiums paid on early retirement                             ---                  (22.0)
Decrease in short-term obligations, excluding current maturities                                 ---                 (530.2)
Net change in note payable to affiliate                                                        236.0                   17.0
Dividend paid                                                                                  (40.0)                 (64.4)
                                                                                    -------------------------------------------
Net cash provided by/(used in) financing activities                                            196.0                 (599.6)
                                                                                    -------------------------------------------

NET CHANGE IN CASH                                                                               8.6                  (10.0)

CASH, BEGINNING OF PERIOD                                                                       71.9                  127.6
                                                                                    -------------------------------------------

CASH, END OF PERIOD                                                                          $  80.5                $ 117.6
                                                                                    ===========================================
</TABLE>

            See Notes to Condensed Consolidated Financial Statements.

                                       4
<PAGE>

                             Verizon Florida Inc.

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.    Basis of Presentation

      Verizon Florida Inc. is a wholly owned subsidiary of GTE Corporation
(GTE), which is a wholly owned subsidiary of Verizon Communications Inc.
(Verizon Communications). The accompanying unaudited condensed financial
statements have been prepared based upon Securities and Exchange Commission
rules that permit reduced disclosure for interim periods. Our results of
operations for the three months ended March 31, 2000 include certain
reclassifications in presentation and certain retroactive adjustments to conform
accounting methodologies as a result of the merger of Bell Atlantic Corporation
and GTE on June 30, 2000. These financial statements reflect all adjustments
that are necessary for a fair presentation of results of operations and
financial position for the interim periods shown including normal recurring
accruals. The results for the interim periods are not necessarily indicative of
results for the full year. For a more complete discussion of significant
accounting policies and certain other information, you should refer to the
financial statements included in our 2000 Annual Report on Form 10-K.

      We have reclassified certain amounts from prior year's data to conform to
the 2001 presentation.

2.    Revenue Recognition

      We recognize revenue when services are rendered based on usage of our
local exchange network and facilities. For other products and services, revenues
are generally recognized when services are rendered or products are delivered to
customers.

      We defer nonrecurring service activation revenues and costs and amortize
them over the expected term of the customer relationship. The deferred costs are
equal to the activation fee revenue and any excess cost is expensed immediately.
The deferred costs represent incremental direct costs associated with certain
nonrecurring fees, such as service activation and installation fees.

3.    Long-Lived Assets

      We assess the impairment of long-lived assets under Statement of Financial
Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" whenever events
or changes in circumstances indicate that the carrying value may not be
recoverable. A determination of impairment (if any) is made based on estimates
of future cash flows.

4.    Dividend

      On May 1, 2001, we declared and paid a dividend in the amount of $45.0
million to GTE.

5.    Derivatives and Hedging Activities

      Effective January 1, 2001, we adopted SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and SFAS No. 138, "Accounting for
Certain Derivative Instruments and Certain Hedging Activities." SFAS No. 133
requires that all derivatives, including derivatives embedded in other financial
instruments, be measured at fair value and recognized as either assets or
liabilities on our balance sheet. Changes in the fair values of derivative
instruments not qualifying as hedges under SFAS No. 133 or any ineffective
portion of hedges are recognized in earnings in the current period. Changes in
the fair values of derivative instruments used effectively as hedges are
recognized in earnings, along with changes in the fair value of the hedged item.
Changes in the fair value of the effective portions of cash flow hedges are
reported in other comprehensive income (loss), and recognized in earnings when
the hedged item is recognized in earnings. We presently do not have any
derivative instruments or hedging activities and, consequently, SFAS No. 133 did
not have an impact on our financial statements.

                                       5
<PAGE>

                             Verizon Florida Inc.

6.    Shareowner's Investment

<TABLE>
<CAPTION>
                                                                                               Contributed          Reinvested
(Dollars in Millions)                                                     Common Stock             Capital            Earnings
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                              <C>                 <C>                 <C>
Balance at December 31, 2000                                                     $585.0              $175.9              $100.9
Net income                                                                                                                 66.3
Dividend declared                                                                                                         (40.0)
Other                                                                                                    .1
                                                                      ------------------ ------------------- -------------------
Balance at March 31, 2001                                                        $585.0              $176.0              $127.2
                                                                      ================== =================== ===================
</TABLE>

      Net income and comprehensive income were the same for the three months
ended March 31, 2001 and 2000.

7.    Segment Information

      We have two reportable segments, Telephone Operations and GTE Funding
Incorporated (GTE Funding). Telephone Operations primarily provides wireline
communication services to local markets. GTE Funding provides short-term
financing and investment vehicles and cash management services for our Company
and six other GTE domestic telephone operating subsidiaries. Each subsidiary is
contractually obligated to repay all amounts borrowed from GTE Funding.

      GTE Funding has no reportable net income. Its interest expense is
approximately equal to the interest income received on affiliate notes between
GTE Funding and the various domestic telephone operating subsidiaries.

      Accounting policies of the segments, as applicable, are the same as those
referred to in Note 1 ("Basis of Presentation").

      Segment results for the three months ended March 31, 2001 and 2000 and
balance sheet results as of March 31, 2001 and December 31, 2000 were as
follows:


<TABLE>
<CAPTION>

(Dollars in Millions)                                                                                2001              2000
----------------------------------------------------------------------------------------------------------------------------
Telephone Operations:
<S>                                                                                               <C>               <C>
Total external revenues                                                                         $  436.6           $  407.1
   Operating income                                                                                129.4               93.6
   Depreciation and amortization                                                                    81.2               90.8
   Interest expense                                                                                 17.6               17.6
   Interest income                                                                                  --                 --
   Capital expenditures                                                                             92.5               85.0
   Total assets                                                                                  2,921.9            2,610.6
                                                                                         -----------------------------------

GTE Funding:
   Operating loss                                                                               $     --           $    (.3)
   Interest expense                                                                                 18.9               24.9
   Interest income                                                                                  18.9               25.2
   Total assets (a)                                                                              1,480.4            1,125.6
                                                                                         -----------------------------------

Consolidated Revenues                                                                           $  436.6           $  407.1
Consolidated Operating Income                                                                      129.4               93.3
Consolidated Assets                                                                              4,191.9            3,891.8
</TABLE>

(a) Assets consist primarily of cash and cash equivalents and notes receivable
from affiliates.

                                       6
<PAGE>

                             Verizon Florida Inc.

8.    Commitments and Contingencies

      Various legal actions and regulatory proceedings are pending to which we
are a party. We have established reserves for specific liabilities in connection
with regulatory and legal matters which we currently deem to be probable and
estimable. We do not expect that the ultimate resolution of pending regulatory
and legal matters in future periods will have a material effect on our financial
condition, but could have a material effect on our results of operations.

      Several state and federal matters may require us to refund a portion of
the revenues collected in the current and prior periods. The outcome of each
pending matter, as well as the time frame within which each matter will be
resolved, is not presently determinable.

      Federal regulatory conditions to the Bell Atlantic - GTE merger include
certain commitments to, among other things, promote competition and the
widespread deployment of advanced services, while helping ensure that consumers
continue to receive high-quality, low cost telephone services. In some cases,
there are significant penalties associated with not meeting these commitments.
The cost of satisfying these commitments could have a significant impact on net
income in future periods.

                                       7
<PAGE>

                             Verizon Florida Inc.

Item 2.  Management's Discussion and Analysis of Results of Operations
         (Abbreviated pursuant to General Instruction H(2).)

      This discussion should be read in conjunction with the Financial
Statements and Notes to Financial Statements.

RESULTS OF OPERATIONS
---------------------

      We reported net income of $66.3 million for the three month period ended
March 31, 2001, compared to net income of $46.5 million for the same period in
2000. Our results were affected by merger-related costs recorded in the first
quarter of 2001, as described below.

Merger-related Costs

      In connection with the Bell Atlantic-GTE merger, which was completed in
June 2000, we recorded pre-tax transition costs of $3.1 million in the first
quarter of 2001 (including $.5 million allocated from Verizon Services Corp.).
These costs were recorded in Operations and Support Expense. Verizon Services
Corp. is a wholly owned subsidiary of Verizon Communications Inc. (Verizon
Communications) that provides various centralized services on behalf of Verizon
Communications' subsidiaries.

      These costs consisted of costs to integrate systems, consolidate real
estate, relocate employees and meet certain regulatory conditions of the merger.
They also included costs for advertising and other costs to establish the
Verizon brand. Transition costs were expensed as incurred.

OPERATING REVENUE STATISTICS
----------------------------

<TABLE>
<CAPTION>
                                                                             2001                  2000             % Change
-------------------------------------------------------------------------------------------------------------------------------
At March 31,
Access Lines in Service (in thousands)
<S>                                                                           <C>                  <C>                  <C>
   Residence                                                                  1,728                1,713                0.9%
   Business                                                                     738                  741                (.4)
   Public                                                                        20                   22               (9.1)
                                                                  ------------------------------------------
                                                                              2,486                2,476                 .4
                                                                  ==========================================
Three Months Ended March 31,
Minutes of Use from Carriers and CLECs  (in millions)                         3,011                3,057               (1.5)
                                                                  ==========================================
</TABLE>

                                       8
<PAGE>

                             Verizon Florida Inc.

OPERATING REVENUES
------------------
(Dollars in Millions)

<TABLE>
<CAPTION>
                                                                                               Three Months Ended March 31,
                                                                                      -----------------------------------------
                                                                                                    2001                 2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                               <C>                  <C>
Local services                                                                                    $221.4               $212.4
Network access services                                                                            169.6                151.4
Long distance services                                                                               7.1                  7.7
Other services                                                                                      38.5                 35.6
                                                                                      -----------------------------------------
Total                                                                                             $436.6               $407.1
                                                                                      =========================================
</TABLE>


LOCAL SERVICES

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      First Quarter                                         $9.0         4.2%
--------------------------------------------------------------------------------

      Local service revenues are earned from the provision of local exchange,
local private line, wire maintenance, voice messaging and value-added services.
Value-added services are a family of services that expand the utilization of the
network, including products such as Caller ID, Call Waiting and Return Call. The
provision of local exchange services not only includes retail revenues, but also
includes local wholesale revenues from unbundled network elements (UNEs),
interconnection revenues from local exchange carriers, certain data transport
revenues and wireless interconnection revenues.

      Growth in local service revenues was driven primarily by revenues received
from competitive local exchange carriers for interconnection of their networks
with our network.


NETWORK ACCESS SERVICES

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      First Quarter                                        $18.2        12.0%
--------------------------------------------------------------------------------

      Network access revenues are earned from end-user subscribers and from long
distance and other competing carriers who use our local exchange facilities to
provide usage services to their customers. Switched access revenues are derived
from fixed and usage-based charges paid by carriers for access to our local
network. Special access revenues originate from carriers and end-users that buy
dedicated local exchange capacity to support their private networks. End-user
access revenues are earned from our customers and from resellers who purchase
dial-tone services.

      The growth in network access revenues was mainly attributable to increased
demand for special access services. This growth reflects a continuing expansion
of the business market, particularly for high-capacity, high-speed digital
services. To a lesser extent, the effect of a regulatory matter in 2000 also
contributed to the increase in revenues.

      Volume-related growth was partially offset by mandated price reductions on
certain interstate access services and other regulatory decisions. The Federal
Communications Commission (FCC) regulates rates that we charge long distance
carriers and end-user subscribers for interstate access services. We are
required to file new access rates with the FCC each year. In July 2000, we
implemented the Coalition for Affordable Local and Long Distance Service (CALLS)
plan. Rates included in the July 2000 CALLS plan will be in effect through June
2001.

                                       9
<PAGE>

                             Verizon Florida Inc.

LONG DISTANCE SERVICES

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      First Quarter                                       $(.6)         (7.8)%
--------------------------------------------------------------------------------

      Long distance revenues are earned primarily from calls made to points
outside a customer's local calling area, but within our service area (intraLATA
toll). IntraLATA toll calls originate and terminate within the same LATA, but
generally cover a greater distance than a local call. These services are
regulated by state regulatory commissions except where they cross state lines.
Other long distance services that we provide include 800 services and Wide Area
Telephone Service (WATS).

      The decline in long distance revenues was principally caused by the
competitive effects of other providers of long distance services.


OTHER SERVICES

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      First Quarter                                         $2.9         8.1%
--------------------------------------------------------------------------------

      Our other services include such services as billing and collections for
long distance carriers and affiliates, facilities rentals to affiliates and
nonaffiliates, public (coin) telephone and customer premises equipment (CPE).
Other service revenues also include fees paid by customers for nonpublication of
telephone numbers and multiple white page listings and fees paid by an affiliate
for usage of our directory listings.

      Growth in other service revenues was driven primarily by higher billing
and collection revenues and growth in contract ordering.


OPERATING EXPENSES
------------------
(Dollars in Millions)

OPERATIONS AND SUPPORT

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      First Quarter                                         $3.0         1.3%
--------------------------------------------------------------------------------

      Operations and support expenses consist of employee costs and other
operating expenses. Employee costs consist of salaries, wages and other employee
compensation, employee benefits and payroll taxes. Other operating expenses
consist of contract services including centralized services expenses allocated
from Verizon Services Corp., rent, network software costs, operating taxes other
than income, the provision for uncollectible accounts receivable, reciprocal
compensation, and other costs.

      Operations and support expenses increased primarily due to the effect of a
pre-tax gain recorded in the first quarter of 2000 associated with lump-sum
settlements of pension obligations for certain active and former employees.
Higher interconnection and related costs associated with reciprocal compensation
arrangements with competitive local exchange and other carriers to terminate
calls on their network, merger-related transition costs recorded in the first
quarter of 2001, and salary and wage increases for management and non-management
employees also contributed to higher operating expenses, but to a lesser extent.

      These increases were partially offset by lower costs for pension and
benefits and materials and supplies, as well as the effect of lower work force
levels. The first quarter of 2001 also reflects a reduction in directory
publishing expenses allocated from an affiliate.

      We continue to incur expenditures related to reciprocal compensation
arrangements with competitive local exchange carriers and other carriers to
terminate calls on their network. In March 2000, the United States Court of
Appeals for the District of Columbia Circuit reversed and remanded the FCC's
February 1999 order that concluded that calls to the Internet through Internet
service providers (ISP) do not terminate at the ISP but are single interstate
calls.  The FCC had concluded that calls to the Internet are not therefore
subject to reciprocal compensation under section 251(b)(5) of the
Telecommunications Act, but left it to state regulatory commissions to determine
whether local interconnection agreements entered into with competing carriers
required the payment of compensation on such calls.

      On April 27, 2001, the FCC released an order responding to the court's
remand. The FCC found that Internet-bound traffic is interstate and subject to
the FCC's jurisdiction. Moreover, the FCC again found that Internet-bound
traffic is not subject to reciprocal compensation under section 251(b)(5) of the
Telecommunications Act. Instead, the FCC established federal rates that decline
from $0.0015 to $0.0007 over a three year period. The FCC order also sets caps
on the total minutes that may be subject to any intercarrier compensation and
requires that incumbent local exchange carriers must offer to pay reciprocal
compensation for local traffic at the same rate as they are required to pay on
Internet-bound traffic.

                                      10
<PAGE>

                             Verizon Florida Inc.

DEPRECIATION AND AMORTIZATION

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      First Quarter                                        $(9.6)      (10.6)%
--------------------------------------------------------------------------------

      Depreciation and amortization expense decreased primarily as a result of
lower rates of depreciation. The decrease was partially offset by growth in
depreciable telephone plant as a result of increased capital expenditures for
higher growth services and increased software amortization costs.


OTHER INCOME AND (EXPENSE), NET

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      First Quarter                                        $(8.7)      (38.0)%
--------------------------------------------------------------------------------

      The change in other income and (expense), net, is primarily attributable
to equity losses recognized from our investment in Verizon Advanced Data, Inc.
(VADI). VADI is a wholly owned subsidiary of Verizon Communications that
provides new exchange access services. At March 31, 2001, our ownership in VADI
was 1.56%.


INTEREST EXPENSE

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      First Quarter                                        $(6.6)      (16.4)%
--------------------------------------------------------------------------------

      Interest expense includes costs associated with borrowings and capital
leases, net of interest capitalized as a cost of acquiring or constructing plant
assets.

      Interest expense decreased in the first quarter of 2001, compared to the
same period in 2000, primarily due to lower levels of average borrowings.


EFFECTIVE INCOME TAX RATES

      Three Months Ended March 31,
--------------------------------------------------------------------------------
      2001                                                      39.7%
--------------------------------------------------------------------------------
      2000                                                      38.8%
--------------------------------------------------------------------------------

      The effective income tax rate is the provision for income taxes as a
percentage of income before provision for income taxes, extraordinary items and
cumulative effect of change in accounting principle. Our effective income tax
rate was higher for the three months ended March 31, 2001, compared to the same
period in 2000, primarily due to equity losses associated with our investment in
VADI, for which we do not recognize income tax benefits.

                                      11
<PAGE>

                             Verizon Florida Inc.

                          PART II - OTHER INFORMATION


Item 1.       Legal Proceedings

              There were no proceedings reportable under this Item.


Item 6.       Exhibits and Reports on Form 8-K


              (b) There were no Current Reports on Form 8-K filed during the
                  quarter ended March 31, 2001.

                                      12
<PAGE>

                             Verizon Florida Inc.

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                       Verizon Florida Inc.




Date:  May 15, 2001                    By  /s/ Edwin F. Hall
                                          --------------------------------
                                               Edwin F. Hall
                                               Controller



        UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF MAY 7, 2001.


                                      13