<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 June 30, 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


                              ---------------------



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 June 30,         Six Months Ended June 30,
                                                           ----------------------------------------------------------------------
  (Dollars in Millions) (Unaudited)                                    2001              2000               2001            2000
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                 <C>              <C>             <C>
OPERATING REVENUES
   (including $.2, $.3, $.3 and $.3 from affiliates)                 $431.9              $411.3           $868.5          $818.4
                                                           ----------------------------------------------------------------------
OPERATING EXPENSES
Operations and support (including $46.6, $47.2, $91.4 and
  $98.8 to affiliates)                                                238.3               240.2            464.3           463.2
Depreciation and amortization                                          83.6                92.2            164.8           183.0
                                                           ----------------------------------------------------------------------
                                                                      321.9               332.4            629.1           646.2
                                                           ----------------------------------------------------------------------

OPERATING INCOME                                                      110.0                78.9            239.4           172.2

OTHER INCOME, NET
  (including $12.6, $19.6, $26.8 and $42.1 from affiliates)            12.6                19.6             26.8            42.5

INTEREST EXPENSE
  (including $19.4, $.1, $43.4 and $.2 to affiliates)                  34.8                37.4             68.4            77.5
                                                           ----------------------------------------------------------------------

INCOME BEFORE PROVISION FOR INCOME TAXES                               87.8                61.1            197.8           137.2

PROVISION FOR INCOME TAXES                                             35.7                28.8             79.4            58.4
                                                           ----------------------------------------------------------------------
NET INCOME                                                           $ 52.1              $ 32.3           $118.4          $ 78.8
                                                           ======================================================================
</TABLE>

            See Notes to Condensed Consolidated Financial Statements.

                                       1
<PAGE>

                              Verizon Florida Inc.

                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                     ASSETS
                                     ------
<TABLE>
<CAPTION>

(Dollars in Millions)                                                                     June 30, 2001       December 31, 2000
-------------------------------------------------------------------------------------------------------------------------------
                                                                                            (Unaudited)
<S>                                                                                     <C>                     <C>
CURRENT ASSETS
Cash                                                                                           $   81.9                $   71.9
Short-term investments                                                                             28.2                    54.2
Accounts receivable:
    Trade and other, net of allowances for uncollectibles of $31.4 and $27.7                      290.3                   289.9
    Affiliates                                                                                     35.6                    27.7
Notes receivable from affiliates                                                                1,313.8                   884.7
Material and supplies                                                                              30.0                    19.8
Prepaid expenses                                                                                    6.0                    52.4
Deferred income taxes                                                                              13.6                    10.6
Other                                                                                              50.4                    33.5
                                                                                   ----------------------------------------------
                                                                                                1,849.8                 1,444.7
                                                                                   ----------------------------------------------

PLANT, PROPERTY AND EQUIPMENT                                                                   5,165.6                 4,998.6
Less accumulated depreciation                                                                   3,215.6                 3,077.3
                                                                                   ----------------------------------------------
                                                                                                1,950.0                 1,921.3
                                                                                   ----------------------------------------------

PREPAID PENSION ASSET                                                                             417.4                   398.8
                                                                                   ----------------------------------------------

OTHER ASSETS                                                                                      103.8                   127.0
                                                                                   ----------------------------------------------

TOTAL ASSETS                                                                                   $4,321.0                $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)                                                                      June 30, 2001      December 31, 2000
--------------------------------------------------------------------------------------------------------------------------------
                                                                                             (Unaudited)
<S>                                                                                         <C>                <C>
CURRENT LIABILITIES
Debt maturing within one year:
    Note payable to affiliate                                                                   $1,528.8               $1,173.3
    Other                                                                                            2.2                    2.2
Accounts payable and accrued liabilities:
    Affiliates                                                                                      81.6                   85.0
    Other                                                                                          167.1                  159.3
Other liabilities                                                                                  138.6                  106.3
                                                                                    --------------------------------------------
                                                                                                 1,918.3                1,526.1
                                                                                    --------------------------------------------

LONG-TERM DEBT                                                                                     890.1                  890.0
                                                                                    --------------------------------------------

EMPLOYEE BENEFIT OBLIGATIONS                                                                       267.6                  247.5
                                                                                    --------------------------------------------
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes                                                                              264.0                  263.9
Other                                                                                               85.8                  102.5
                                                                                    --------------------------------------------
                                                                                                   349.8                  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                                                                                134.2                  100.9
                                                                                    --------------------------------------------
                                                                                                   895.2                  861.8
                                                                                    --------------------------------------------

TOTAL LIABILITIES AND SHAREOWNER'S INVESTMENT                                                   $4,321.0               $3,891.8
                                                                                    ============================================
</TABLE>


            See Notes to Condensed Consolidated Financial Statements.

                                       3
<PAGE>

                              Verizon Florida Inc.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                 Six Months Ended June 30,
                                                                                  ---------------------------------------------
(Dollars in Millions) (Unaudited)                                                               2001                   2000
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                     <C>                    <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES                                                    $ 335.1              $   414.4
                                                                                  ---------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
Net change in short-term investments                                                            26.0                    ---
Capital expenditures                                                                          (198.3)                (177.9)
Net change in notes receivable from affiliate                                                 (429.1)               1,032.0
Other, net                                                                                       5.8                    (.1)
                                                                                  ---------------------------------------------
Net cash (used in)/provided by investing activities                                           (595.6)                 854.0
                                                                                  ---------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Preferred stock retired, including premiums paid on early retirement                             ---                  (21.9)
Decrease in short-term obligations, excluding current maturities                                 ---               (1,569.9)
Net change in note payable to affiliate                                                        355.5                  416.7
Dividends paid                                                                                 (85.0)                (127.4)
                                                                                  ---------------------------------------------
Net cash provided by/(used in) financing activities                                            270.5               (1,302.5)
                                                                                  ---------------------------------------------

NET CHANGE IN CASH                                                                              10.0                  (34.1)

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

CASH, END OF PERIOD                                                                          $  81.9              $    93.5
                                                                                  =============================================
</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 consolidated
financial statements have been prepared based upon Securities and Exchange
Commission rules that permit reduced disclosure for interim periods. 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. The balance
sheet at December 31, 2000 has been derived from the audited financial
statements at that date but does not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. 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 August 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 fair value 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.

6.    Recent Accounting Pronouncements

      In June 2001, the Financial Accounting Standards Board issued SFAS No.
141, "Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets."

       SFAS No. 141 requires that the purchase method of accounting be used for
all business combinations initiated after June 30, 2001. Use of the
pooling-of-interests method is no longer permitted. SFAS No. 141 also includes
guidance on the initial

                                       5
<PAGE>

                              Verizon Florida Inc.

recognition and measurement of goodwill and other intangible assets acquired in
a business combination that is completed after June 30, 2001.

       SFAS No. 142 no longer permits the amortization of goodwill and
indefinite-lived intangible assets. Instead, these assets must be reviewed
annually (or more frequently under certain conditions) for impairment in
accordance with this statement. This impairment test uses a fair value approach
rather than the undiscounted cash flows approach previously required by SFAS No.
121. Intangible assets that do not have indefinite lives will continue to be
amortized over their useful lives and reviewed for impairment in accordance with
SFAS No. 121. We are required to adopt SFAS No. 142 effective January 1, 2002.
We are currently evaluating our intangible assets in relation to the provisions
of SFAS No. 142 to determine the impact, if any, the adoption of SFAS No. 142
will have on our results of operations or financial position.

7.     Merger Charges

       In connection with the merger of Bell Atlantic and GTE on June 30, 2000,
we incurred charges associated with employee severance of $29.0 million pre-tax.
Employee severance costs, as recorded under SFAS No. 112, "Employers' Accounting
for Postemployment Benefits," represent the benefit costs for the separation of
management employees who were entitled to benefits under pre-existing separation
plans, as well as an accrual for ongoing SFAS No. 112 obligations for former GTE
employees. During the second quarter of 2000, in connection with the merger, we
also recorded a pre-tax charge of $18.2 million for direct, incremental
merger-related costs, including compensation, professional services and other
direct costs.

       In addition, we recorded pre-tax merger-related transition costs of $8.9
million in the first six months of 2001. Transition 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 since the date
of the merger totaled $13.7 million. Transition costs are expensed as incurred.

       Results of operations for the first six months of 2000 also included
adjustments that were required to conform our accounting methods and
presentation to that of Verizon Communications. These conforming adjustments are
differences in capitalization policies. As a result of these adjustments,
operating income increased $3.5 million for the six month period ended June 30,
2000.

8.     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                                                                                        118.4
Dividends declared                                                                                (85.0)
Other                                                                           .1                  (.1)
                                              ----------------------------------------------------------
Balance at June 30, 2001                                $585.0              $176.0               $134.2
                                              ==========================================================
</TABLE>

       Net income and comprehensive income were the same for the six months
ended June 30, 2001 and 2000.

9.     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 six months ended June 30, 2001 and 2000 and
balance sheet results as of June 30, 2001 and December 31, 2000 were as follows:

                                       6
<PAGE>

                              Verizon Florida Inc.

<TABLE>
<CAPTION>
(Dollars in Millions)                                                                                2001                2000
------------------------------------------------------------------------------------------------------------------------------
Telephone Operations:
<S>                                                                                         <C>                    <C>
Total external revenues                                                                         $  868.5            $   818.4
   Operating income                                                                                239.8                172.9
   Depreciation and amortization                                                                   164.8                183.0
   Interest expense                                                                                 36.6                 35.7
   Interest income                                                                                    .4                   --
   Capital expenditures                                                                            198.3                177.9
   Total assets                                                                                  2,902.5              2,881.5
                                                                                         -------------------------------------

GTE Funding:
   Operating loss                                                                               $    (.4)           $     (.7)
   Interest expense                                                                                 36.7                 46.3
   Interest income                                                                                  37.1                 47.0
   Total assets (a)                                                                              1,541.7                132.7
                                                                                         -------------------------------------

Consolidated Revenues                                                                           $  868.5            $   818.4
Consolidated Operating Income                                                                      239.4                172.2
Consolidated Assets                                                                              4,321.0              3,891.8
</TABLE>

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

10.   Commitments and Contingencies

      Various legal actions and regulatory proceedings are pending to which we
are a party and claims which, if asserted, may lead to other legal actions. 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 it
could have a material effect on our results of operations.

      Several regulatory 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.

      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 to 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 $118.4 million for the six month period ended
June 30, 2001, compared to net income of $78.8 million for the same period in
2000.

      Our results for 2001 and 2000 were affected by special items. The special
items in both periods include our allocated share of charges from affiliates
that provide various centralized services on behalf of Verizon Communications
Inc. subsidiaries.

      The following table shows how special items are reflected in our
consolidated statements of income for each period:

<TABLE>
<CAPTION>
                                                                                            (Dollars in Millions)
Six Months Ended June 30,                                                               2001               2000
-----------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>                <C>
Operating Revenues
   Other charges and special items                                                    $ ---             $ 1.5
   Regulatory contingency                                                               ---               1.0
                                                                            -------------------------------------
                                                                                        ---               2.5
                                                                            -------------------------------------

Operations and Support Expenses
  Bell Atlantic-GTE merger direct incremental costs                                     ---              18.2
  Bell Atlantic-GTE merger severance costs                                              ---              29.0
  Bell Atlantic-GTE merger transition costs                                             8.9               ---
  Other charges and special items                                                       ---               5.5
                                                                            -------------------------------------
                                                                                        8.9              52.7
                                                                            -------------------------------------
Depreciation and Amortization Expenses
   Bell Atlantic-GTE merger accounting conformity adjustments                           ---              (3.5)
                                                                            -------------------------------------

Interest Expense
   Regulatory contingency                                                               ---                .3
                                                                            -------------------------------------
Net impact on pre-tax income                                                          $ 8.9             $52.0
                                                                            =====================================
</TABLE>

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

Merger Charges

       In connection with the merger of Bell Atlantic and GTE on June 30, 2000,
we incurred charges associated with employee severance of $29.0 million pre-tax.
Employee severance costs, as recorded under SFAS No. 112, "Employers' Accounting
for Postemployment Benefits," represent the benefit costs for the separation of
management employees who were entitled to benefits under pre-existing separation
plans, as well as an accrual for ongoing SFAS No. 112 obligations for former GTE
employees. During the second quarter of 2000, in connection with the merger, we
also recorded a pre-tax charge of $18.2 million for direct, incremental
merger-related costs, including compensation, professional services and other
direct costs.

      In addition, we recorded pre-tax merger-related transition costs of $8.9
million in the first six months of 2001. Transition 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 are expensed as
incurred.

      Results of operations for the first six months of 2000 also included
adjustments that were required to conform our accounting methods and
presentation to that of Verizon Communications. These conforming adjustments are
differences in capitalization policies. As a result of these adjustments,
operating income increased $3.5 million for the six month period ended June 30,
2000.

                                       8
<PAGE>

                              Verizon Florida Inc.

Other Charges and Special Items

      In the second quarter of 2000, we recognized a pre-tax charge for a
regulatory matter totaling $1.3 million. We recorded a reduction to operating
revenue in the amount of $1.0 million and a charge to interest expense of $.3
million. This matter relates to a specific issue currently under investigation
by the Federal Communications Commission (FCC). We believe that it is probable
that the ultimate resolution of this matter will result in refunds to customers,
including interest. In the second quarter of 2000, we also recorded other
charges and special items totaling approximately $7.0 million pre-tax.

      These and other items affecting the comparison of our results of
operations for the six month periods ended June 30, 2001 and 2000 are discussed
in the following sections.


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

<TABLE>
<CAPTION>

Six Months Ended June 30,                                    2001                 2000
---------------------------------------------------------------------------------------
<S>                                                       <C>                  <C>
Local services                                             $446.6               $427.5
Network access services                                     331.8                304.1
Long distance services                                       14.0                 15.4
Other services                                               76.1                 71.4
                                                -----------------------------------------
Total                                                      $868.5               $818.4
                                                =========================================
</TABLE>

LOCAL SERVICES

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      Six Months                                          $19.1          4.5%
--------------------------------------------------------------------------------

       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 competitive local exchange carriers, certain data
transport revenues and wireless interconnection revenues.

      Growth in local service revenues was driven primarily by higher payments
received from competitive local exchange carriers for interconnection of their
networks with our network and for the purchase of unbundled network elements and
by solid demand for our value-added services as a result of new packaging of
services.


NETWORK ACCESS SERVICES

      2001 - 2000                                               Increase
--------------------------------------------------------------------------------
      Six Months                                          $27.7          9.1%
--------------------------------------------------------------------------------

      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 increase 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.

                                       9
<PAGE>

                              Verizon Florida Inc.

LONG DISTANCE SERVICES

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      Six Months                                         $(1.4)        (9.1)%
--------------------------------------------------------------------------------

      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
--------------------------------------------------------------------------------
      Six Months                                          $4.7          6.6%
--------------------------------------------------------------------------------

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

      The growth in other service revenues was primarily attributable to
increased sales and services to affiliates.


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

OPERATIONS AND SUPPORT

      2001 - 2000                                              Increase
--------------------------------------------------------------------------------
      Six Months                                          $1.1           .2%
--------------------------------------------------------------------------------

      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 affiliates, 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
pre-tax gains recorded in the first half 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 networks also contributed to higher operating expenses in the
first half of 2001.

      These cost increases were substantially offset by the effect of
merger-related costs and other special items recorded in 2000 and 2001, as
described in the Results of Operations section. Operating costs have also
decreased due to business integration activities and declining work force
levels.

      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.

                                       10
<PAGE>

                              Verizon Florida Inc.

      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.


DEPRECIATION AND AMORTIZATION

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      Six Months                                          $(18.2)       (9.9)%
--------------------------------------------------------------------------------

      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. Partially affecting the change in depreciation and
amortization expense were adjustments made to conform the accounting policies of
Bell Atlantic and GTE as a result of the merger, as described in Results of
Operations.


OTHER INCOME, NET

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      Six Months                                          $(15.7)      (36.9)%
--------------------------------------------------------------------------------

      The change in other income, 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 June 30, 2001, our ownership in VADI
was 1.56%.


INTEREST EXPENSE

      2001 - 2000                                             (Decrease)
--------------------------------------------------------------------------------
      Six Months                                           $(9.1)      (11.7)%
--------------------------------------------------------------------------------

      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 six months of 2001, compared to
the same period in 2000, primarily due to lower levels of average borrowings.

EFFECTIVE INCOME TAX RATES

      Six Months Ended June 30,
--------------------------------------------------------------------------------
      2001                                                      40.1%
--------------------------------------------------------------------------------
      2000                                                      42.6%
--------------------------------------------------------------------------------

      The effective income tax rate is the provision for income taxes as a
percentage of income before provision for income taxes. Our effective income tax
rate was lower for the six months ended June 30, 2001, compared to the same
period in 2000, primarily due to a decrease in non-recurring income tax expense.
This factor was partially offset by the effect of equity losses associated with
our investment in VADI, for which we do not recognize income tax benefits.

                                       11
<PAGE>

                              Verizon Florida Inc.

OTHER MATTERS
-------------
Recent Accounting Pronouncements

       In June 2001, the Financial Accounting Standards Board issued SFAS No.
141, "Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets."

       SFAS No. 141 requires that the purchase method of accounting be used for
all business combinations initiated after June 30, 2001. Use of the
pooling-of-interests method is no longer permitted. SFAS No. 141 also includes
guidance on the initial recognition and measurement of goodwill and other
intangible assets acquired in a business combination that is completed after
June 30, 2001.

       SFAS No. 142 no longer permits the amortization of goodwill and
indefinite-lived intangible assets. Instead, these assets must be reviewed
annually (or more frequently under certain conditions) for impairment in
accordance with this statement. This impairment test uses a fair value approach
rather than the undiscounted cash flows approach previously required by SFAS No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of." Intangible assets that do not have indefinite lives
will continue to be amortized over their useful lives and reviewed for
impairment in accordance with SFAS No. 121. We are required to adopt SFAS No.
142 effective January 1, 2002. We are currently evaluating our intangible assets
in relation to the provisions of SFAS No. 142 to determine the impact, if any,
the adoption of SFAS No. 142 will have on our results of operations or financial
position.

                                       12
<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 June 30, 2001.

                                       13
<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:  August 13, 2001                       By  /s/ Edwin F. Hall
                                                -----------------------
                                                     Edwin F. Hall
                                                     Controller


      UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF AUGUST 8, 2001.

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