Light Reading

Verizon Eyes Independent, Converged Future

Sarah Thomas
1/7/2014
50%
50%

Verizon's No. 1 priority in 2014 is to complete its spinoff from Vodafone and wow the market with integrated services made possible by its independence, Lowell McAdam, the carrier's chairman and chief executive, said Tuesday.

Speaking at a Citi conference, McAdam said that arranging the Verizon Wireless buyout from former parent Vodafone Group plc (NYSE: VOD) was the most significant move for Verizon Communications Inc. (NYSE: VZ) in 2013, and that getting the purchase closed is its first priority this year. The deal is on track to close this quarter following both companies' shareholder meetings this month, he said. (See: Vodafone Agrees to $130B Verizon Stake Sale.)

It might seem like business as usual for Verizon, since its co-parent had always been hands-off and overseas, but converged services are a huge priority now. Verizon has 5 million FiOS TV customers, more than 5 million broadband subscribers, a nationwide LTE footprint, and content relationships with big names like the National Football League. Combine those, and "we're a very logical [carrier] to take that and make it seamless across the different technologies," McAdam said.

"Five years from now, if we're just the wireless company we are today, then that hasn't been successful, even if it is financially," he said. "What makes it a home run is the ability to leverage every asset Verizon has and provide new services to customers than what they have today."

He didn't detail what new services that may mean, except to say mobile will be at the center of everything, covered in a layer of cloud and security, which McAdam called the hottest thing Verizon has going in its portfolio right now. He also said Verizon plans to explore partnerships with over-the-top content providers to see where a pure OTT play will take it. (See: Verizon: Major Apps Move Cloud-ward in 2014.)

This converged strategy will include stopping some products, like its joint venture with the cable companies, and refocusing on certain aspects of the enterprise market, which he called challenging. (See: Verizon, MSOs Kill Wireless JV and Why Verizon Needed a Cloud Reboot.)

When asked about competing on price and engaging in the customer-grabbing war that AT&T Inc. (NYSE: T) and T-Mobile US Inc. are waging, McAdam made it clear that approach is not for Verizon. In a jibe at AT&T, he said that real customer loyalty can't be bought with $200 credits -- those customers will just flee right back. (See: AT&T Lures T-Mobile Subs With $450 Promise.)

"If all four carriers have robust LTE networks, then we start to differentiate based on the solutions we provide customers and the service-level agreements," he said. "Price competition, going after each other's customers like that, I think is typically short lived."

— Sarah Reedy, Senior Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
TomNolle
50%
50%
TomNolle,
User Rank: Light Sabre
1/8/2014 | 3:16:42 PM
Re: Cloudy with gradual clearing?
I agree on the mobility angle; pulling all of Verizon Wireless in-house opens mobile more than anything else.  Mobile broadband opens a whole new kind of cloud model, one where you have to mate devices with internal processes to get super-fast, context-appropriate, answers to users' questions.  That builds a larger revenue stream based on services.  "All IP" by itself is really just a cost-converging approach.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
1/7/2014 | 5:38:54 PM
Re: Cloudy with gradual clearing?
I think a lot of the focus will be around linking the cloud services they are building with mobility, and doing it securely. I agree it all still sounds rather vague, but it also sounds like what AT&T is touting - an all-IP network, cloud-based intelligence and mobile endpoints, increasingly. 

I would expect Verizon to try to figure out how to continue to exploit the FiOS investment for consumers, MDUs and businesses.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/7/2014 | 5:17:46 PM
Re: Cloudy with gradual clearing?
Ah yes, FiOS too. McAdam said again that they won't expand FiOS's footprint, but will work on improving its penetration, like in MDUs in NYC. So, any FiOS tie-ins will be limited by geography, which does seem counterintuitive.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
1/7/2014 | 5:14:36 PM
Re: Cloudy with gradual clearing?
There are also some mixed messages about FiOS, as in, it's central to the overall plan, but there's no plan to expand footprint. Each of those points is understandable on its own, but together, not so much.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/7/2014 | 5:07:49 PM
Re: Cloudy with gradual clearing?
Do you mean with what actual integrated services they will launch? I agree they need more clarity there, especially since --as you've said -- they can't even master an integrated bill. Video is the big one, of course, but Verizon's TV Everywhere initiatives haven't come to much yet either.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
1/7/2014 | 4:20:09 PM
Cloudy with gradual clearing?
Verizon has been making a lot of statements lately. Taken separately, they make sense, but it's not always easy to put them together to figure out what the current thinking is. More clarity will be required at some point.
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Easing the Tech Pains for the Homeless
Carol Wilson, Editor-at-large, 7/28/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?