& cplSiteName &

Verizon's Copper Migration Will Be Slow Going

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
1/22/2013
50%
50%

Verizon Communications Inc.'s move to kill off some of its copper footprint could be a slow process, it emerged on Tuesday's fourth-quarter earnings call. "In wireline we are focused on moving customers to fiber-based assets," Verizon CFO Fran Shammo said on the call. This is no surprise: The operator revealed in December that it wasn't replacing copper lines damaged by Superstorm Sandy. "Copper does not mix with water ... fiber optics doesn't care if it's in water," noted the CFO on the earnings call. The transition from copper to fiber in areas where FiOS is available, however, will be a long-term process. Shammo said Verizon hit its target of 200,000 customers moved in 2012 and that "our target is 300,000 this year." Verizon currently still has some 3.3 million customers on copper. So it will be a long-term process for Verizon to actually see all the savings it gets from not operating copper, particularly as its FiOS footprint in the U.S. is by no means comprehensive. The company is hoping to persuade customers not covered by fiber to move to 4G instead. On the call, Verizon said it now has 4G LTE in 476 markets in the U.S. and covers more than 273 million potential customers. It hopes to complete the 4G rollout in 2013. The numbers
Verizon posted a loss of US$1.93 billion for the quarter (because of damage from Superstorm Sandy and one time-costs associated with pension liabilities) on revenue up 4.5 percent at $30 billion. This translates to loss of $1.48 per share, compared with a loss of $0.71 per share a year earlier, when it reported a net deficit of about $212 million. Excluding the one-time items, Verizon had a profit of $0.38 per share. Analysts polled by Reuters expected a profit before one-time costs of $0.50 per share on revenue of $29.83 billion. — Dan Jones, Site Editor, Light Reading Mobile

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
year2525
50%
50%
year2525,
User Rank: Light Beer
1/24/2013 | 9:08:21 PM
re: Verizon's Copper Migration Will Be Slow Going
-áI think they're looking at 4G more as a rural wireless option than cities where it isn't too costly to run fiber.
jalawler
50%
50%
jalawler,
User Rank: Light Beer
1/24/2013 | 7:02:11 PM
re: Verizon's Copper Migration Will Be Slow Going
There are still areas where Verizon has committed to a municipality to build, and hasn't finished. NYC, DC and Philadelphia are the big ones, plus there are odds and ends around the country.
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
1/24/2013 | 1:33:59 AM
re: Verizon's Copper Migration Will Be Slow Going
Seven:
You write: "Given the shift in power to the wireless guys, I suspect it is more out
now than it was in 2003 when that was stated. -áThey probably will do
replacements with fiber where they have to, but only in places where
they must rebuild."

I thought that this was the case as well, especially after Mark Wegleitner left.-á But that seems not to be the case at least in New York City.-á Last month while visiting my daughter in Brooklyn, I saw the Verizon trucks laying fiber down under 5th Ave in Park Slope on a Saturday.-á I went up to the workers and they assured me that they were beginning the deployment of FiOS in the area.-á Yes this is New York but this neighborhood was NOT hit by flooding and while the power was out in the area for a short time due to Sandy, there was no major outage of copper services (DSL or phone service).-á
This is a high density area in Brooklyn and while there was no work performed to connect to buildings while I was there, one would expect that next as fiber is then run up the cross streets from the splitters.-á This could provide Vz with many new customers to make their goal.-á In addition, GPON is a good network architecture to also provide b/w for LTE and I expect that Vz has realized GPON (and XGPON?) as opposed to the earlier BPON, has plenty of b/w to support VzW and they can amortize the cost of fiber deployment over both FiOS and VzW 4G.-á
Here in my home neighborhood where I have at&t, at&t is having to pull a lot of fiber to support their new 4G mini (DAS) antennas systems and this has to be expensive.-á Unfortunately I can't get them to FTTH my house :-(
MMQoS -á -á-á -á
year2525
50%
50%
year2525,
User Rank: Light Beer
1/22/2013 | 7:12:57 PM
re: Verizon's Copper Migration Will Be Slow Going
-áHi, they've stated that certain states have dropped COLR requirements already.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
1/22/2013 | 6:18:49 PM
re: Verizon's Copper Migration Will Be Slow Going
Duh,

I think that they have come to realize that if they want phone only customers on Wireless and that they are reserving their investments for that. -áTheir choices are:

1 - Put in more DSL (and then lose to cable)
2 - Focus on building wireless
3 - Putting in more FiOS which costs a lot

They stated long ago that 3 was out. -áGiven the shift in power to the wireless guys, I suspect it is more out now than it was in 2003 when that was stated. -áThey probably will do replacements with fiber where they have to, but only in places where they must rebuild.

So, I think they will continue to sell non-FiOS properties where they can although I suspect the buyers have dried up (especially if USF rules change). -áThey consider the TDM copper network a depreciated asset, so writing it down does not matter. -áThey are already trying to talk the FCC into wireless as a COLR capable service. -áThis means they will continue to shed copper customers, which in one way is a HUGE benefit to them in labor costs. -áThe complete elimination of the copper network eliminates all kinds of union jobs.

seven
Duh!
50%
50%
Duh!,
User Rank: Light Sabre
1/22/2013 | 5:14:35 PM
re: Verizon's Copper Migration Will Be Slow Going
On the one hand, they want to move customers off of the copper network.-á That makes a lot of sense.-á It's probably worth more as scrap than as a depreciated asset, OPEX has to be huge, and margins must be shrinking.-á Versus their FiOS base, which has one of the highest ARPUs in the industry, low OPEX, and is more resilient.

On the other hand, they aren't doing any more build-outs (except maybe in storm-damaged areas). -á As much as they'd like to think it is, 4G LTE is not really an equivalent service: data caps, lower speeds, lower availability, customer perception.-á So does this mean that VZ wants to hand over a good chunk of their customer base to the MSOs?-á What do they do with fixed assets like poles, pole attachments, pedestals and COs in areas that they don't plan to serve with FiOS?-á How are they going to unload their COLR obligations with a story like that?-á Or do they think they can pawn off more of their rural assets on unsuspecting buyers?

I truly don't understand the strategy.
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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 Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.