<PAGE>

================================================================================

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


         [X] Quarterly Report Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934

              For the quarterly period ended: September 30, 2000

                                      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.
                    (Former Name: GTE Florida Incorporated)


                  FLORIDA                              59-0397520
      (STATE OR OTHER JURISDICTION OF       (I.R.S. EMPLOYER IDENTIFICATION NO.)
       INCORPORATION OR ORGANIZATION)

1255 Corporate Drive, SVC04C08, Irving, Texas            75038
   (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)            (ZIP CODE)

        Registrant's telephone number, including area code 972-507-5000



THE REGISTRANT, A WHOLLY-OWNED SUBSIDIARY OF GTE CORPORATION, A WHOLLY-OWNED
SUBSIDIARY OF VERIZON COMMUNICATIONS INC., 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>

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

                     VERIZON FLORIDA INC. AND SUBSIDIARIES
            Condensed Consolidated Statements of Income (Unaudited)


<TABLE>
<CAPTION>
                                                 Three Months Ended                 Nine Months Ended
                                                    September 30,                     September 30,
                                           -------------------------------   ---------------------------------
                                                2000             1999             2000              1999
                                           -------------------------------   ---------------------------------
                                                                 (Dollars in Millions)
<S>                                        <C>              <C>              <C>               <C>
OPERATING REVENUES                         $        427.1   $        412.8   $       1,245.5   $       1,253.9
                                           --------------   --------------   ---------------   ---------------

OPERATING EXPENSES
     Operations and support                         240.7            195.4             703.9             661.1
     Depreciation and amortization                   93.5             87.0             276.5             266.8
                                           --------------   --------------   ---------------   ---------------

        Total operating expenses                    334.2            282.4             980.4             927.9
                                           --------------   --------------   ---------------   ---------------

OPERATING INCOME                                     92.9            130.4             265.1             326.0

OTHER (INCOME) EXPENSE
     Interest income                                (11.7)           (10.1)            (54.2)            (48.6)
     Interest expense                                29.2             27.1             106.7              94.5
                                           --------------   --------------   ---------------   ---------------

INCOME BEFORE INCOME TAXES                           75.4            113.4             212.6             280.1
     Income taxes                                    24.3             44.1              82.7             109.1
                                           --------------   --------------   ---------------   ---------------

NET INCOME                                 $         51.1   $         69.3   $         129.9   $         171.0
                                           ==============   ==============   ===============   ===============
</TABLE>


The accompanying notes are an integral part of these statements.

                                       1
<PAGE>

                     VERIZON FLORIDA INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets


<TABLE>
<CAPTION>
                                                                         (Unaudited)
                                                                         September 30,          December 31,
                                                                              2000                  1999
                                                                        ---------------       ---------------
                                                                                 (Dollars in Millions)
<S>                                                                     <C>                   <C>
ASSETS
Current assets
    Cash and cash equivalents                                           $          81.1       $         127.6
    Accounts receivable, less allowances of $29.8 and $34.0                       287.3                 404.7
    Accounts receivable from affiliates                                             3.8                  15.1
    Notes receivable from affiliates                                            1,278.6               1,422.8
    Inventories and supplies                                                       26.5                  17.5
    Prepayments and other                                                          32.0                  50.8
                                                                        ---------------       ---------------

       Total current assets                                                     1,709.3               2,038.5
                                                                        ---------------       ---------------

Property, plant and equipment, at cost                                          4,956.7               4,784.7
Accumulated depreciation                                                       (3,045.7)             (2,873.3)
                                                                        ---------------       ---------------

       Total property, plant and equipment, net                                 1,911.0               1,911.4
                                                                        ---------------       ---------------

Prepaid pension costs                                                             385.6                 293.9
Other assets                                                                       14.5                  10.7
                                                                        ---------------       ---------------

Total assets                                                            $       4,020.4       $       4,254.5
                                                                        ===============       ===============
</TABLE>



The accompanying notes are an integral part of these statements.

                                       2
<PAGE>

                     VERIZON FLORIDA INC. AND SUBSIDIARIES
               Condensed Consolidated Balance Sheets - Continued


<TABLE>
<CAPTION>
                                                                          (Unaudited)
                                                                          September 30,          December 31,
                                                                              2000                   1999
                                                                        ---------------       ---------------
                                                                                 (Dollars in Millions)
<S>                                                                     <C>                   <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
    Short-term obligations, including current maturities                $           2.1       $       1,730.5
    Notes payable to affiliate                                                  1,470.0                   3.6
    Accounts payable                                                               56.7                  59.4
    Affiliate payables                                                             93.6                 108.2
    Advance billings and customer deposits                                         56.3                  49.3
    Taxes payable                                                                  37.1                   8.0
    Dividends payable                                                               2.0                  64.1
    Other                                                                         101.3                  73.6
                                                                        ---------------       ---------------

       Total current liabilities                                                1,819.1               2,096.7
                                                                        ---------------       ---------------

Long-term debt                                                                    891.8                 892.1
Deferred income taxes                                                             242.6                 214.2
Employee benefit plans and other                                                  243.0                 226.0
                                                                        ---------------       ---------------

       Total liabilities                                                        3,196.5               3,429.0
                                                                        ---------------       ---------------

Shareholders' equity
    Preferred stock                                                                --                    21.2
    Common stock (23,400,000 shares issued and outstanding)                       585.0                 585.0
    Additional paid-in capital                                                    244.5                  57.6
    Retained earnings (deficit)                                                    (5.6)                161.7
                                                                        ---------------       ---------------

       Total shareholders' equity                                                 823.9                 825.5
                                                                        ---------------       ---------------

Total liabilities and shareholders' equity                              $       4,020.4       $       4,254.5
                                                                        ===============       ===============
</TABLE>


The accompanying notes are an integral part of these statements.

                                       3
<PAGE>

                     VERIZON FLORIDA INC. AND SUBSIDIARIES
          Condensed Consolidated Statements of Cash Flows (Unaudited)

<TABLE>
<CAPTION>

                                                                                  Nine Months Ended
                                                                                    September 30,
                                                                         ------------------------------------
                                                                               2000                 1999
                                                                         ----------------     ---------------
                                                                                (Dollars in Millions)
OPERATING
       <S>                                                               <C>                  <C>
       Net cash provided by operations                                   $          538.1     $         438.7
                                                                         ----------------     ---------------

INVESTING
    Capital expenditures                                                           (272.5)             (225.7)
    Other - net                                                                      (0.1)                0.4
                                                                         ----------------     ---------------

       Net cash used in investing                                                  (272.6)             (225.3)
                                                                         ----------------     ---------------

FINANCING
    Preferred stock retired, including premium paid on early redemption             (21.9)                --
    Dividends paid                                                                 (172.4)             (125.8)
    Decrease in short-term obligations, excluding current maturities             (1,728.3)             (324.9)
    Net change in affiliate notes                                                 1,610.6               204.6
                                                                         ----------------     ---------------

       Net cash used in financing                                                  (312.0)             (246.1)
                                                                         ----------------     ---------------

Decrease in cash and cash equivalents                                               (46.5)              (32.7)

Cash and cash equivalents:
    Beginning of period                                                             127.6               113.5
                                                                         ----------------     ---------------

    End of period                                                        $           81.1     $          80.8
                                                                         ================     ===============
</TABLE>


The accompanying notes are an integral part of these statements.

                                       4
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES
           Consolidated Statement of Shareholders' Equity (Unaudited)


<TABLE>
<CAPTION>
                                                                                 Additional       Retained
                                                   Preferred         Common        Paid-In        Earnings
                                                     Stock           Stock         Capital        (Deficit)         Total
                                                 ------------    ------------    ------------    ------------    ------------
                                                                             (Dollars in Millions)
<S>                                              <C>             <C>             <C>             <C>             <C>
Shareholders' equity, December 31, 1999          $       21.2    $      585.0    $       57.6    $      161.7    $      825.5

Net income                                                                                              129.9           129.9
Redemption of preferred stock                           (21.2)                                           (0.8)          (22.0)
Tax benefit from exercise of stock options                                                0.5                             0.5
Dividends declared                                                                                     (110.2)         (110.2)
Capital contribution in connection with merger                                          186.4                           186.4
Dividend declared in connection with merger                                                            (186.4)         (186.4)
Other                                                                                                     0.2             0.2
                                                 ------------    ------------    ------------    ------------    ------------

Shareholders' equity, September 30, 2000         $         --    $      585.0    $      244.5    $       (5.6)   $      823.9
                                                 ============    ============    ============    ============    ============
</TABLE>


The accompanying notes are an integral part of these statements.

                                       5
<PAGE>

                     VERIZON FLORIDA INC. AND SUBSIDIARIES
       Notes to Condensed Consolidated Financial Statements (Unaudited)

NOTE 1.  BASIS OF PRESENTATION

Verizon Florida Inc. (the Company), formerly GTE Florida Incorporated, 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 consolidated financial statements have been
prepared based upon Securities and Exchange Commission (SEC) rules that permit
reduced disclosure for interim periods. These financial statements include
certain reclassifications in presentation as a result of the merger of Bell
Atlantic Corporation (Bell Atlantic) and GTE (see Note 2). 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 and other items (see Note 2). 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, please refer to the consolidated financial statements
included in the Company's 1999 Annual Report on Form 10-K.

NOTE 2.  BELL ATLANTIC - GTE MERGER

On June 30, 2000, Bell Atlantic and GTE completed a merger of equals under a
definitive merger agreement dated as of July 27, 1998 (the Merger). Under the
terms of the agreement, GTE became a wholly-owned subsidiary of Bell Atlantic.
In September 2000, Bell Atlantic changed its name to Verizon Communications Inc.
The merger qualified as a tax-free reorganization and has been accounted for as
a pooling of interests. Under this method of accounting Bell Atlantic and GTE
are treated as if they had always been combined for accounting and financial
reporting purposes.

Merger-Related and Severance Costs

Results of operations for nine months ended September 30, 2000 included
merger-related pre-tax costs totaling approximately $47.2 million, consisting of
$18.2 million for direct incremental costs and $29.0 million for employee
severance costs. These costs include the Company's allocated share of
merger-related costs from Verizon Services Group (Verizon Services), an
affiliate that provides centralized services on a contract basis. Costs
allocated from Verizon Services are included in Operations and support expenses.

Direct incremental costs consist of the Company's proportionate share of
expenses associated with completing the merger transaction such as professional
and regulatory fees, compensation arrangements and shareowner-related costs.
Employee severance costs, as recorded under Statement of Financial Accounting
Standards (SFAS) No. 112, "Employers' Accounting for Postemployment Benefits,"
represent the Company's proportionate share of benefit costs for the separation
of management employees who are entitled to benefits under Verizon
Communications pre-existing separation pay plans, as well as an accrual of
ongoing SFAS No. 112 obligations for GTE employees. The separations are expected
to occur as a result of consolidations and process enhancements. Accrued
postemployment benefit liabilities for those employees are included in the
Company's condensed consolidated balance sheets as components of "Other current
liabilities" and "Employee benefit plans and other".

Conforming Accounting Adjustments

Results of operations also included adjustments that were required to conform
the Company's accounting methods and presentation to that of Verizon
Communications. As a result of these adjustments, operating income increased
$3.5 million and $5.2 million for the nine month periods ended September 30,
2000 and 1999, respectively.

                                       6
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES
  Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

Other Related Actions

During the second quarter of 2000, the Company also recorded $0.5 million pre-
tax for other actions in relation to the Merger or other strategic decisions.

NOTE 3.  COMPREHENSIVE INCOME

Net income and comprehensive income were the same for the nine months ended
September 30, 2000 and 1999.

NOTE 4.  PREFERRED STOCK

In March 2000, the Company redeemed all 847,800 outstanding shares of preferred
stock and paid premiums of $0.8 million on the early redemption.

NOTE 5.  DIRECTORY PUBLISHING REVENUES

Consistent with industry practice, effective January 1, 2000, the Company
changed its method of recognizing directory publishing revenues. Verizon
Directories Corp., a wholly-owned subsidiary of GTE, publishes telephone
directories for which it receives advertising revenue. Under the Company's
previous method of revenue recognition, approximately 60% of the advertising
revenue for directories published by Verizon Directories Corp. in the Company's
operating areas was recognized as revenue. The remaining 40% was recognized as
revenue by Verizon Directories Corp. Under the new method of revenue
recognition, Verizon Directories Corp. now recognizes 100% of the directory
publishing revenues. The Company, in turn, bills Verizon Directories Corp. for
customer listing information and billing and collection services. As a result,
the Company's other services revenues and operating income for the nine months
ended September 30, 2000 decreased $64.1 million and $59.1 million,
respectively, compared to the same period in 1999.

NOTE 6.  RECENT ACCOUNTING PRONOUNCEMENTS

FASB Accounting Standard - Derivatives and Hedging Activities

In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities." This
statement requires that all derivatives be measured at fair value and recognized
as either assets or liabilities on the balance sheet. Changes in the fair values
of derivative instruments will be recognized in either earnings or other
comprehensive income, depending on the designated use and effectiveness of the
instruments.

In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative
Instruments and Certain Hedging Activities," which amended SFAS No. 133. The
amendments in SFAS No. 138 address certain implementation issues and relate to
such matters as the normal purchases and normal sales exception, the definition
of interest rate risk, hedging recognized foreign-currency-denominated assets
and liabilities, and intercompany derivatives.

The Company is currently evaluating the provisions of SFAS No. 133 and SFAS No.
138, which it will adopt on January 1, 2001. The impact of adoption will be
affected by several factors, including the specific hedging instruments in place
and their relationships to hedged items, as well as market conditions at the
date of adoption.

SEC Staff Accounting Bulletin - Revenue Recognition

In December 1999, the SEC issued Staff Accounting Bulletin (SAB) No. 101,
"Revenue Recognition in Financial Statements," which provides additional
guidance on revenue recognition and, in certain circumstances, requires the
deferral of incremental costs. The Company will adopt SAB No. 101 in the fourth
quarter of 2000, retroactive to January 1, 2000. The Company is currently
assessing the impact of adopting SAB No. 101.

                                       7
<PAGE>

                    VERIZON FLORIDA INC. AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

NOTE 7.  COMMITMENTS AND CONTINGENCIES

Various legal actions and regulatory proceedings are pending to which the
Company is a party. The Company has established reserves for specific
liabilities in connection with regulatory and legal matters that management
currently deems to be probable and estimable. The Company does not expect that
the ultimate resolution of pending regulatory and legal matters in future
periods will have a material effect on the Company's financial condition, but it
could have a material effect on the Company's results of operations.

Federal and state regulatory conditions to the 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. As previously disclosed, the cost of satisfying these
commitments is likely to impact net income of Verizon Communications in 2000 on
a consolidated basis by approximately $275 to $325 million, based on preliminary
estimates. The estimated impact on each operating telephone subsidiary,
including the Company, is currently being assessed.

NOTE 8.  SEGMENT REPORTING

The Company has two reportable segments, Telephone Operations and GTE Funding
Incorporated (GTE Funding). The Telephone Operations segment primarily provides
wireline communication services to local markets. The GTE Funding segment
provides short-term financing and investment vehicles and cash management
services for the Company and six other of GTE's domestic telephone operating
subsidiaries, each of which is contractually obligated to repay all amounts
borrowed from GTE Funding.

GTE Funding has no reportable revenue or 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.

The following table represents segment income statement results for the nine
months ended September 30, 2000 and 1999 and balance sheet results as of
September 30, 2000 and December 31, 1999, respectively:

                                                        2000            1999
                                                    -----------     -----------
                                                       (Dollars in Millions)
TELEPHONE OPERATIONS:
    Total external revenues                         $   1,245.5     $   1,253.9

    Operating income                                      266.0           334.3
    Depreciation and amortization                         276.5           266.8
    Interest expense                                       54.1            54.5
    Capital expenditures                                  272.5           225.7
    Total assets                                        2,638.2         2,694.2

GTE FUNDING:
    Operating loss                                  $      (0.9)    $      (8.3)
    Interest expense                                       59.7            46.3
    Interest income                                        60.6            54.6
    Total assets (a)                                    1,847.4         1,732.3

CONSOLIDATED REVENUES                               $   1,245.5     $   1,253.9
CONSOLIDATED OPERATING INCOME                             265.1           326.0
CONSOLIDATED ASSETS                                     4,020.4         4,254.5

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


                                       8
<PAGE>

                     VERIZON FLORIDA INC. AND SUBSIDIARIES

Item 2.   Management's Discussion and Analysis of Results of Operations
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)

RESULTS OF OPERATIONS

Net income decreased $41.1 million, or 24% for the nine months ended September
30, 2000, compared to the same period in 1999.

The Company's operating results for 2000 and 1999 were affected by special
items. The special items in both periods include the Company's allocated share
of charges from Verizon Services Group (Verizon Services), an affiliate that
provides centralized services to the Company on a contract basis.

The following table shows how special items are reflected in the Company's
condensed statements of income for each period:

<TABLE>
<CAPTION>
                                                                                            Nine Months Ended September 30,
                                                                                            -------------------------------
(Dollars in Millions)                                                                            2000               1999
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                                         <C>                <C>
Operating Revenues
   Regulatory contingency                                                                   $     1.0          $      --
   Other charges and special items                                                                1.5                 --
                                                                                            -------------------------------
                                                                                                  2.5                 --
                                                                                            -------------------------------

Operating Expenses
   Bell Atlantic-GTE merger costs                                                                47.2                 --
   Bell Atlantic-GTE merger other related actions                                                 0.5                 --
   Bell Atlantic-GTE merger conforming accounting adjustments                                    (3.5)              (5.2)
   Other charges and special items                                                                5.0                 --
                                                                                            -------------------------------
                                                                                                 49.2               (5.2)
                                                                                            -------------------------------
Interest Expense
   Regulatory contingency                                                                         0.3                 --
                                                                                            -------------------------------
Total impact on pre-tax income                                                              $    52.0           $   (5.2)
                                                                                            ===============================
</TABLE>

What follows is a further explanation of the nature of these special items.

Bell Atlantic - GTE Merger

On June 30, 2000, Bell Atlantic and GTE completed a merger of equals under a
definitive merger agreement dated as of July 27, 1998 (the Merger). Under the
terms of the agreement, GTE became a wholly-owned subsidiary of Bell Atlantic.
In September 2000, Bell Atlantic changed its name to Verizon Communications Inc.
(Verizon Communications). The Merger qualified as a tax-free reorganization and
has been accounted for as a pooling of interests. Under this method of
accounting Bell Atlantic and GTE are treated as if they had always been combined
for accounting and financial reporting purposes.

Merger-Related and Severance Costs

Results of operations for the nine months ended September 30, 2000 included
merger-related pre-tax costs totaling approximately $47.2 million, consisting of
$18.2 million for direct incremental costs and $29.0 million for employee
severance costs. These costs include the Company's allocated share of
merger-related costs Verizon Services. Costs allocated from Verizon Services are
included in Operations and support expenses.

                                       9
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES

    Management's Discussion and Analysis of Results of Operations - Continued
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)

Direct incremental costs consist of the Company's proportionate share of
expenses associated with completing the merger transaction such as professional
and regulatory fees, compensation arrangements and shareowner-related costs.
Employee severance costs, as recorded under Statement of Financial Accounting
Standards (SFAS) No. 112, "Employers' Accounting for Postemployment Benefits,"
represent the Company's proportionate share of benefit costs for the separation
of management employees who are entitled to benefits under Verizon
Communications pre-existing separation pay plans, as well as an accrual of
ongoing SFAS No. 112 obligations for GTE employees. The separations are expected
to occur as a result of consolidations and process enhancements. Accrued
postemployment benefit liabilities for those employees are included in the
Company's condensed consolidated balance sheets as components of "Other current
liabilities" and "Employee benefit plans and other".

Conforming Accounting Adjustments

Results of operations also included adjustments that were required to conform
the Company's accounting methods and presentation to that of Verizon
Communications. As a result of these adjustments, operating income increased
$3.5 million and $5.2 million for the nine month periods ended September 30,
2000 and 1999, respectively.

Other Related Actions

During the second quarter of 2000, the Company also recorded $0.5 million pre-
tax for other actions in relation to the Merger or other strategic decisions.

Other Charges and Special Items

Regulatory Contingency

In the second quarter of 2000, the Company recognized a pre-tax charge for a
regulatory matter totaling $1.3 million. The Company recorded a reduction to
operating revenue in the amount of $1.0 million and a charge to interest expense
of $0.3 million. This matter relates to a specific issue currently under
investigation by the Federal Communications Commission (FCC). The Company
believes that it is probable that the ultimate resolution of this matter will
result in refunds to customers, including interest.

Other Items

In the second quarter of 2000, the Company also recorded other charges and
special items totaling approximately $6.5 million pre-tax.

                                      10
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES

    Management's Discussion and Analysis of Results of Operations - Continued
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)

OPERATING REVENUES

<TABLE>
<CAPTION>
(Dollars in Millions)                                  Nine Months Ended
                                                         September 30,
                                                -----------------------------      Increase        Percent
                                                     2000             1999        (Decrease)       Change
                                                ------------     ------------    -----------    -----------
<S>                                             <C>              <C>             <C>            <C>
    Local services                              $      631.7     $      596.3    $      35.4              6%
    Network access services                            471.2            452.9           18.3              4%
    Other services                                     142.6            204.7          (62.1)           (30)%
                                                ------------     ------------    -----------
      Total operating revenues                  $    1,245.5     $    1,253.9    $      (8.4)            (1)%
                                                ------------     ------------    -----------
</TABLE>


Local Services

Local services 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.
Cellular service providers also pay access charges for cellular calls
transported by the Company. The increase in local services revenues was
primarily due to 3% growth in switched access lines in service which generated
additional revenues from basic local services, CentraNet(R) services, Integrated
Services Digital Network and Digital Channel Services. Increased demand for
enhanced customer calling services such as SmartCall(R) and CLASS services also
contributed to the revenue increase.

Network Access Services

Network access services revenues are earned from end-user subscribers and long
distance and other competing carriers who use the Company's 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 the 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 customers and from resellers
who purchase dial-tone services. The increase in network access services
revenues was primarily due to 2% increase in minutes of use which generated
additional network access services revenues for the nine months ended September
30, 2000, as compared to the same period in 1999. Special access revenues grew
as a result of greater demand for increased bandwidth services by high-capacity
users. These increases were partially offset by the impact of mandated
interstate and intrastate access price reductions and other regulatory decisions
including the implementation of the Coalition for Affordable Local and Long
Distance Service (CALLS) plan, effective July 1, 2000 (see "INTERSTATE
REGULATORY DEVELOPMENTS"). In addition, a special charge recorded in 2000 for a
regulatory contingency matter further reduced network access services revenues
(see "RESULTS OF OPERATIONS").

Other Services

Other services revenues include such services as inventory management and
purchasing services, customer premises equipment sales, public telephone and
billing and collection provided to affiliates and third parties. In addition,
other services revenues include revenues from toll services which are earned
primarily from calls made outside a customer's local calling area but within the
same local access transport areas (intraLATA). The decrease in other services
revenues for the nine-month period ended September 30, 2000, compared to the
same period in 1999 was primarily the result of the impact of a change in the
recognition of directory publishing revenues resulting in a decrease of $64.1
million (for further information see "OTHER DEVELOPMENTS - Directory Publishing
Revenues"). Further contributing to the decrease were other charges and special
items recorded in 2000 (see "RESULTS OF OPERATIONS").

                                      11
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES

    Management's Discussion and Analysis of Results of Operations - Continued
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)


OPERATING EXPENSES

<TABLE>
<CAPTION>
(Dollars in Millions)                                     Nine Months Ended
                                                            September 30,
                                                    -----------------------------                       Percent
                                                         2000             1999         Increase          Change
                                                    ------------     ------------    ------------     ------------
<S>                                                 <C>              <C>             <C>              <C>
    Operations and support                          $      703.9     $      661.1    $       42.8            6%
    Depreciation and amortization                          276.5            266.8             9.7            4%
                                                    ------------     ------------    ------------
      Total operating expenses                      $      980.4     $      927.9    $       52.5            6%
                                                    ============     ============    ============
</TABLE>

Operations and Support

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, rent, network software costs, operating taxes other than
income, the provision for uncollectible accounts receivable, and other costs.
Operations and support expenses increased $42.8 million for the nine months
ended September 30, 2000, compared to the same period in 1999. The increase was
primarily due to a second quarter 2000 special charge of $47.2 million for
severance and direct incremental merger-related costs, as well as the impact of
other merger related actions (see "RESULTS OF OPERATIONS"). Higher access
charges, primarily due to increased competitive local exchange carrier (CLEC)
activities, and higher costs associated with customer and access line growth and
costs for new initiatives, such as digital subscriber line (DSL) service,
further contributed to the increase. Partially offsetting the increases was a
pre-tax gain of $25.7 million associated with lump-sum settlements of pension
obligations for former employees electing deferred vested pension cash-outs and
for current employees who met certain eligibility requirements. A charge of
$16.2 million in the first quarter of 1999, associated with an employee-
reduction program, also offset the increase in operations and support expenses.

Depreciation and Amortization

The increase in depreciation and amortization expense for the nine months ended
September 30, 2000, compared to the same period in 1999, primarily reflects the
continuing investment in the Company's network. Also contributing to the
increase in depreciation and amortization expense was the effect of adjustments
made to conform the accounting policies of Bell Atlantic and GTE as a result of
the Merger (see "RESULTS OF OPERATIONS").

INTEREST EXPENSE

Interest expense increased 12.9% or $12.2 million for the nine months ended
September 30, 2000, compared to the same period in 1999, primarily due to higher
average debt balances.

INTERSTATE REGULATORY DEVELOPMENTS

FCC Regulation and Interstate Rates

On May 31, 2000, the FCC approved the industry proposal to restructure access
charges (known as the "CALLS plan"). Under the terms of the plan, direct end-
user access charges are increased while access charges to long distance carriers
are reduced. While the plan continues the 6.5% (less inflation) annual
reductions for most interstate access charges, it provides for a price freeze
when switched access transport prices reach $0.0055 per-minute. In addition, in
conjunction with provisions that will allow carriers to deaverage their
subscriber line charges by geographic zones, the plan establishes a new $650
million universal service fund to support interstate access rates. Of that
amount, Verizon Communications expects approximately $320 million to be used to
support interstate access services in its service territory. The price
restructuring portions of the plan are mandatory for all large local exchange
carriers, including Verizon Communications' telephone operating companies. The
price level portions of the plan are mandatory only in the initial year of the
plan. By September 14, 2000 carriers were to

                                      12
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                      VERIZON FLORIDA INC. AND SUBSIDIARIES

    Management's Discussion and Analysis of Results of Operations - Continued
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)

decide whether to participate in the remaining four years of the plan, or
whether to submit cost studies as the basis of future price caps.

Consistent with the new access plan, Verizon Communications filed tariff
adjustments to take effect on July 1, 2000 (with modifications effective August
11, 2000). As a result of these tariff adjustments, former GTE carriers in ten
states, and former Bell Atlantic carriers in seven states reached the $0.0055
benchmark, and by opting into the full five year CALLS plan, Verizon
Communications would not be subject to further annual interstate switched access
price reductions for the remaining life of the plan.

As of September 14, 2000, Verizon Communications formally opted to participate
in the full five-year term of the FCC-adopted industry plan to restructure
access rates known as the CALLS plan. As a result of this decision, price caps
on Verizon Communications' interstate access charges will be set according to
the terms of the CALLS plan.

OTHER DEVELOPMENTS

Directory Publishing Revenues

Consistent with industry practice, effective January 1, 2000, the Company
changed its method of recognizing directory publishing revenues. Verizon
Directories Corp., a wholly-owned subsidiary of GTE, publishes telephone
directories for which it receives advertising revenue. Under the Company's
previous method of revenue recognition, approximately 60% of the advertising
revenue for directories published by Verizon Directories Corp. in the Company's
operating areas was recognized as revenue. The remaining 40% was recognized as
revenue by Verizon Directories Corp. Under the new method of revenue
recognition, Verizon Directories Corp. now recognizes 100% of the directory
publishing revenues. The Company, in turn, bills Verizon Directories Corp. for
customer listing information and billing and collection services. As a result,
the Company's other services revenues and operating income for the nine months
ended September 30, 2000 decreased $64.1 million and $59.1 million,
respectively, compared to the same period in 1999.

RECENT ACCOUNTING PRONOUNCEMENTS

FASB Accounting Standard - Derivatives and Hedging Activities

In June 1998, the Financial Accounting Standards Board (FASB) issued SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities." This
statement requires that all derivatives be measured at fair value and recognized
as either assets or liabilities on the balance sheet. Changes in the fair values
of derivative instruments will be recognized in either earnings or other
comprehensive income, depending on the designated use and effectiveness of the
instruments.

In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain Derivative
Instruments and Certain Hedging Activities," which amended SFAS No. 133. The
amendments in SFAS No. 138 address certain implementation issues and relate to
such matters as the normal purchases and normal sales exception, the definition
of interest rate risk, hedging recognized foreign-currency-denominated assets
and liabilities, and intercompany derivatives.

The Company is currently evaluating the provisions of SFAS No. 133 and SFAS No.
138, which it will adopt on January 1, 2001. The impact of adoption will be
affected by several factors, including the specific hedging instruments in place
and their relationships to hedged items, as well as market conditions at the
date of adoption.

                                      13
<PAGE>

                      VERIZON FLORIDA INC. AND SUBSIDIARIES

    Management's Discussion and Analysis of Results of Operations - Continued
         (Abbreviated pursuant to General Instruction H(2) of Form 10-Q)

SEC Staff Accounting Bulletin - Revenue Recognition

In December 1999, the SEC issued Staff Accounting Bulletin (SAB) No. 101,
"Revenue Recognition in Financial Statements," which provides additional
guidance on revenue recognition and, in certain circumstances, requires the
deferral of incremental costs. The Company will adopt SAB No. 101 in the fourth
quarter of 2000, retroactive to January 1, 2000. The Company is currently
assessing the impact of adopting SAB No. 101.


                                      14
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                      VERIZON FLORIDA INC. AND SUBSIDIARIES

PART II. OTHER INFORMATION

Item 1.   Legal Proceedings

          There are no proceedings reportable under this Item.

Item 6.   Exhibits and Reports on Form 8-K.

     (a)  Exhibit:

          27   Financial Data Schedule

     (b)  Current Report on Form 8-K filed during the quarter ended September
          30, 2000:

          A Current Report on Form 8-K, dated September 7, 2000, was filed in
          connection with a change in the Company's independent accountants.


                                      15
<PAGE>

                    VERIZON FLORIDA INC. AND SUBSIDIARIES

                                   SIGNATURE

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.
                                                  ------------------------------
                                                            (Registrant)

Date:        November 14, 2000                           /s/ Edwin F. Hall
       ------------------------------             ------------------------------
                                                           Edwin F. Hall
                                                             Controller
                                                  (Principal Accounting Officer)


UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF NOVEMBER 8, 2000.

                                      16
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                    VERIZON FLORIDA INC. AND SUBSIDIARIES

                                 EXHIBIT INDEX


      Exhibit
      Number                             Description
      ------          -------------------------------------------------

        27            Financial Data Schedule