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 Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Operators Should Block Ads to Get Their Cut, Startup Says
Sarah Reedy, Senior Editor, 11/24/2014
$35B+ Spectrum Auction Dings Verizon, Shines Dish
Dan Jones, Mobile Editor, 11/24/2014
Like Us on Facebook
Twitter Feed