JPLPremium
join:2007-04-04
Downingtown, PA
kudos:1 | reply to Kearnstd
Re: Can't make money if the business doesn't grow..... said by Kearnstd:copper pair is dead. Verizon went with FTTH so they would have a product worthy of fighting cable with. DSL is a deadend tech thanks to its stupid short distance restrictions compared to DOCSIS and Fiber. Absolutely right. What if Verizon DIDN'T do FiOS? Would DSL be able to compete with cable HSI, especially now that DOCSIS 3.0 is starting to get rolled out? And with all the bundling that's going on, would Verizon be able to hold onto their existing landline customers? Or would those customers bundle their voice service in with their cable TV and HSI service? Judging by the bundling that's going on out there, I think the answer is obvious. FiOS gives Verizon the ability to compete. Not only does it move them into the video area (which is hugely profitable)... not only does it give them the ablity to more than compete with cable for HSI... but it gives them the ability to retain landline customers when they bundle in their services.
I've never understood why analysts like this one couldn't see that. If Verizon didn't do this, they'd be cratering right now. Their only profitable area would be their wireless business. I don't think Verizon really had much of a choice - it was either do something like this, or die. |
