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msilbey 12/5/2012 | 5:34:46 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

Strikes me as a difficult branding proposition. Verizon may be quite clear that it has two separate companies, but the name is still Verizon for both organizations, even if it's Verizon Wireless for one. Maybe they'll focus solely on the FiOS branding. Otherwise it's not just going to be a conflict of interest, it's going to be damn confusing. 

Jeff Baumgartner 12/5/2012 | 5:34:46 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

Verizon Wireless and its cable partners have been quick to argue that Verizon Comm. is a different company, insisting that they'll continue to see FiOS and cable battle it out for TV and broadband subs.  But, you're right, you'd have to be blind not to see that there's at least some conflict both sides have to weigh out here.


But so far they haven't backed up that talk with a cable/VZ Wireless bundle in FiOS territory. Perhaps there's a good (convenient?) operational reason why they have avoided FiOS territories in the initial markets and I suspect it's just a matter of time before we see them try this in a FiOS territory. However, it is quite  curious that they've sidestepped the uncomfortable situation that you outline.


But when they do bring this sort of bundle to a FiOS territory it will be interesting to see how it's marketed versus how it's marketed (and how heavily it's marketed) in non-FiOS markets. JB




 
msilbey 12/5/2012 | 5:34:46 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

I have a hard time understanding how Verizon can compete against itself and go up against FiOS markets with cable. I'm sure it's great for VZ to go after U-verse markets, but how do they possibly communicate in FiOS areas which Verizon service consumers should be buying? "No, it's this Verizon! Not that one!" 

Jeff Baumgartner 12/5/2012 | 5:34:45 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

It definetely is. They can claim that the companies are different all they want to keep the regulatory stuff in check, but I suspect the average consumer won't know the difference and/or will be confused by this when these bundles do reach FiOS-ville. JB


 


 


 


 

MMQoS 12/5/2012 | 5:34:43 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

Ever since Ivan stepped down and the Vz Wireless team took over management of the company, FiOS has seemed to take a back seat to Wireless (LTE) development.  This seems strange to me even given the background of the new management.  While Wireless is very profitable, only 51% of those profits go to Vz Comm with the shared ownership with Vodaphone.  FiOS on the other hand remains quite profitable even with OTT video, gets top votes from consumer surveys and the cost per sub keeps dropping.  Why are they capping further development when they can reap 100% of the profits?  Is this a Regulatory position they are pursing?


I can understand the need to dance with the devil in order to acquire more spectrum from the MSO's but as a Vz Comm stockholder I am wondering why they are not more agressive in pushing FiOS into new territories, even competing with ATT.  I'm in ATT territory (Palo Alto) and I've tried uVerse but rejected it based on poor video quality but Comcast is only marginally better and definitely worse for repair service so I'm not interested in the combo deal.  We have a Verizon Comm fiber metro ring node a block from my home, neighbors who know FiOS and would subscribe but any indications of FiOS service?  Not a chance.              

steve q 12/5/2012 | 5:34:40 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

Hi i will have to say that is true if verizon wireless is hopping for a biger bit into the high speed data network they will have more problem Fios is the only true speed out ther with a fiber cable going into each home. The cost of the going data plan that verizon wireless has will stop most customer and they end up going to the cable company and that a lose for the stock holder for verizon. The only way verizon can win is still push the fios service out to those that need a better name brand company not the number game of what the Wireless is hopping for. The bad side of it all is that if the deal with the airwave go though the cable company may just tell verizon what to do next and then the customer will just move to a different playing feild.

Duh! 12/5/2012 | 5:34:40 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

You're not the first to notice that.  One gets the sense that McAdam and company think they see better ROI (or RONA or whatever their preferred metric is) on LTE than on FiOS.  There is also reason to suspect that they believe they have cherry picked the easiest communities to serve in-territory, and the rest either have significantly higher construction cost or less cooperative municipal governments.


But all of the reported metrics for FiOS point to a great business case... ARPU in particular, take rate (in communities served for more than a year), new adds, churn, brand perception, you name it.   They've got one of the best brands in the country, high customer satisfaction, bragging rights for broadband speed.  I can't imagine a rational business reason not to build on that.


One gets the sense that McAdam would be happy to sell off or spin out the wireline properties, the legacy customer base, and especially the union workforce.


And, yes, I had a lot of admiration for Ivan Seidenberg, Doreen Tobin, and (especially) Mark Wegleitner.  It took a lot of cajones to sell FiOS to the analysts and absorb the fallout.    Plus the Seidenberg era operations and HR execs managed to keep the peace with the unions.


 

^Eagle^ 12/5/2012 | 5:34:37 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

What if for a phase 2 of this long term plan of Verizon's, they sell FIOS to Comcast?


VZ has long tried in various ways to rid itself of subscriber access in various markets.  I wonder if you really pull apart FIOS numbers, if FIOS has made VZ much money?  if Comcast owned FIOS, almost immediately operating costs go down as Comcast has long contracts with content providers and could manage or miminimaze duplicate content contracts.  I think this could be the case anyway.


So far with VZ, they have mostly sold access plants in "non core" geographies.  But who knows.  With VZ making much of their money off of wireless stranger things have happened.


I have zero insider knowledge that this might happen.  Merely speculating.  OF course my guess is that this would never happen until AFTER VZ convinces the Feds to allow it to do the spectrum deals it is trying to do.  Get the AWS spectrum.  Get the cash from selling off 700mhz.  Only after all that is done, then sell off FIOS.  Cannot sell off FIOS, as this is their "competitive" access play, until they secure all the spectrum in their various deals.


Interesting to think about.


sailboat

paolo.franzoi 12/5/2012 | 5:34:33 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

sailboat,


One thing you may not know is that Vz was able to create FiOS technician out of the 4 copper OSP tech positions.  Created great workforce flexibility.  Don't forget this as part of the business case.


seven


 

^Eagle^ 12/5/2012 | 5:34:33 PM
re: Comcast/Verizon Combo Steers Clear of FiOS

Brook,


Yeah, I knew that.  The FIOS project allowed VZ to reduce technicians and also move a lot of revenue from the regulated side to the "non-regulated" side (separate company of course).


So there is definitely that part of the business model equation.  Considering VZ has stopped investing in FIOS, and appears to not be interested in rolling it out to other areas nor interested in advanced upgrades to the existing FIOS plant or architecture (don't ses VZ pushing much on advanced PON technologies these days.  Maybe they are, but from the outside, it is not visible if they are); one wonders what VZ's long term commitment to high speed wireline access is.  For now, yeah, FIOS is doing OK for them.  But this is under the metrics of minimal new investment into either expansion or upgrading.


I think some of this of course might be, as others have posted, because the senior management now running VZ largely came from wireless.  


But I do wonder what their long term plans are for FIOS.  You know as well as I do, that under the normal telco timing for next generations of platforms and services, we should be beginning to hear noise from VZ regards new ideas, new RFI's, new RFP's, etc.    FIOS, as you well know, while still the best access network in north america, was essentially designed nearly a decade ago with some tweaks in the later stages of roll out and construction.  The system while still best in USA, is starting to get a bit aged and we are hearing no noise about next generation plans for FIOS.


So, what do you think VZ's long term plan for FIOS is?


I know you are not directly in the PON business any more.  But would be curious to hear your thoughts.  What will VZ do with FIOS.  Keep it and milk it for revenue but put no funds into it for some time?  sell it off?  Upgrade it and invest in it and expand territory coverage?  


sailboat

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