& 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, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
UPCOMING COURSE SCHEDULE
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
Friday, October 21, 1:00PM EDT
Security: Evolving the Data Center
Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
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 Documentaries
From Philly, With Love

9|30|16   |     |   (5) comments


Join Alan Breznick, cable's answer to the Italian Stallion, as he runs through the highlights of SCTE Cable-Tec Expo, lumbers along in Rocky Balboa's footsteps and searches for the perfect Philadelphia cheesesteak.
LRTV Interviews
CenturyLink: SD-WAN Customers Looking for Value Not Cost Savings

9|30|16   |   5:31   |   (0) comments


At NFV & Carrier SDN in Denver, CenturyLink's Eric Nowak told Light Reading that when customers launch SD-WAN, they aren't necessary looking to save money, but instead they are looking for more value from what they're spending. He also shared some unique case studies and lessons learned from launching SD-WAN services.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
AT&T CEO Backs Black Lives Matter
Dan Jones, Mobile Editor, 9/30/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
From Philly, With Love
Alan Breznick, Cable/Video Practice Leader, Light Reading, 9/30/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.