& 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.
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
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
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
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 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: Re-usable Functions Next NFV Key

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


The next generation of NFV has to break functions down into re-usable 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.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
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
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
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.