Light Reading
Once the buyout of Verizon Wireless from Vodafone is complete, Verizon has a lot more converged services in store.

Verizon Eyes Independent, Converged Future

Sarah Reedy
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
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
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
1959 Newsreel: Make Phone Calls – From Cars!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/24/2014
Meet the Phantom Network for NFV
Ray Le Maistre, Editor-in-chief, 10/23/2014
Like Us on Facebook
Twitter Feed