Light Reading

Verizon's FTTP Texas Feeler

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News Analysis
Light Reading
7/19/2004
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FORT WORTH, Texas -- Verizon Communications Inc. (NYSE: VZ) announced today that all of its fiber-to-the-premises (FTTP) talk will soon become a reality for the residents of nearby Keller, Texas.

The carrier still didn't say specifically when the service will be turned on but did provide a few more data points -- including some pricing -- that it wasn't ready to give back in May, when it held a press conference that promised the moon (see Verizon Flaunts Fiber Plan).

The upshot is that Verizon is still committed to the plan, but the carrier is having to lay out lots of cash to catch up to its competitors in some regions.

The carrier revealed today that its FTTP customers will have a choice of three data speeds: For $34.95, customers can expect 5 Mbit/s downstream and 2 Mbit/s upstream and a local and long-distance calling package. For $44.95, customers can expect 15 Mbit/s downstream and 2 Mbit/s upstream and a local and long-distance calling package. Pricing for 30-Mbit/s connections will be announced later.

But Verizon's effort in Keller is still one away from a triple-play [ed. note: ain't that just the story of my life], the company acknowledging it won't provide video or TV services until sometime in 2005.

In Texas, Verizon says its FTTP network will pass about 100,000 homes. The population of Keller, where Verizon has so far spent $15 million on its FTTP network, is estimated to be only about 33,100 strong by the North Central Texas Council of Governments.

In effect, Keller -- a city that's also served by SBC Communications Inc. (NYSE: SBC) and OneSource Communications -- has become an expensive testing ground for Verizon.

For, even if a full one third of the residents in Keller subscribe to Verizon's FTTP network, the carrier's network will have cost it about $1,360 per customer served. Supposing one third of Keller's population does subscribe to FTTP services at the $45 monthly rate, Verizon would take about two-and-a-half years to make its money back.

One carrier is already delivering triple-play services to parts of Keller and nearby Southlake, Texas. OneSource, a CLEC and cable operator that counts Keller City Hall as one of its clients, offers customers basic phone service, 77 cable channels, and an Internet connection up to 2 Mbit/s for $84.95 a month.

That competitive pressure is, in part, what is driving Verizon towards its goal of passing 1 million homes by the year's end. It's noteworthy, too, that the carrier is still extending its copper network in areas where FTTP isn't feasible (see Verizon Wrangles Remote DSLAMs).

Verizon says it will pass 100,000 homes around Huntington Beach, Calif., and another 100,000 homes around Tampa and parts of Hillsborough County, Fla.

— Phil Harvey, News Editor, Light Reading


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phonon99
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phonon99,
User Rank: Light Beer
12/5/2012 | 1:26:33 AM
re: Verizon's FTTP Texas Feeler
Anyone knows more details about the $1360 of FTTP connection per customer? Does it include the fiber, splitter and the cost of digging ?
Steve0616
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Steve0616,
User Rank: Light Beer
12/5/2012 | 1:26:32 AM
re: Verizon's FTTP Texas Feeler
I've heard the costs are about $1500 to make fiber available to a home, and another $400 to wire up the two ends of the fiber with optics and electronics for the service.
whatsinaname
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whatsinaname,
User Rank: Light Beer
12/5/2012 | 1:26:32 AM
re: Verizon's FTTP Texas Feeler
This article off, the same press release, seems to imply $8000/customer! ($800M/100,000)

http://www.internetweek.com/br...
Truelight1
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Truelight1,
User Rank: Light Beer
12/5/2012 | 1:26:24 AM
re: Verizon's FTTP Texas Feeler
They are having major teething problems with this deployment which is slowing the deployment.


zara73
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zara73,
User Rank: Light Beer
12/5/2012 | 1:26:22 AM
re: Verizon's FTTP Texas Feeler
what is a teething problem? Do you know what vendor suppliers it affects?
allidia
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allidia,
User Rank: Light Beer
12/5/2012 | 1:26:21 AM
re: Verizon's FTTP Texas Feeler
Where's the story Lightreading?
fgoldstein
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fgoldstein,
User Rank: Light Sabre
12/5/2012 | 1:26:20 AM
re: Verizon's FTTP Texas Feeler
Given the FCC's policies on ILEC FTTH (Telecom Act? We don't need no steenkin' Telecom Act!), what will VZ be offering over this network? Dial tone is dial tone, if you're lucky. (It's no dial tone if you're not.) Are all those vaunted megabits available as a common carrier service, available to ISPs, or will they be treated as private carriage into the ratepayer's choice of Verizon Online or, uh, Verizon Online? Such a bargain! Not.

And will it retain Verizon Online's mandatory advertising policy for email?

At least in Keller there's another provider on the pole.
optical Mike
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optical Mike,
User Rank: Light Sabre
12/5/2012 | 1:26:20 AM
re: Verizon's FTTP Texas Feeler

A total of 100,000 customers in each of the three regions will be "passed" by the new FTTP technology this year at a cost of $800 million.

800M/300,000= $2666

OSPGuy
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OSPGuy,
User Rank: Light Beer
12/5/2012 | 1:26:19 AM
re: Verizon's FTTP Texas Feeler
As M Goldstein so eloquently puts it:

"Are all those vaunted megabits available as a common carrier service, available to ISPs, or will they be treated as private carriage into the ratepayer's choice of Verizon Online or, uh, Verizon Online? Such a bargain! Not."

We all share your frustration. The obvious unfairness of a private company seeking to profit from its own investment is a manifest travesty.

Well, I'm not going to take it anymore. I'm packing my bags and heading to a country that knows how to allocate the fruits of other people's labor to more worthy individuals like me.

Now, where to go... google search for "proletarian utopia" .... ah yes, here's a nice spot ... North Korea.... "low crime, pristine natural environment untouched by the ravages of globalism"... Now there's a paradise.

So long suckers! I'm off to the promised land.
strands555
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strands555,
User Rank: Light Beer
12/5/2012 | 1:26:19 AM
re: Verizon's FTTP Texas Feeler
Given this:
http://hraunfoss.fcc.gov/edocs...

You've answered your own question.
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