& cplSiteName &

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.
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
UPCOMING COURSE SCHEDULE
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (0) comments


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.