| reply to ravensfan55
Re: Why is it said by ravensfan55:This guy has his lips wrapped around the cable industry's dick. He also proclaimed that FiOS would be a failure for Verizon. Not exactly. If you'd like a little more balanced summary of his position, you might check out this link: »bits.blogs.nytimes.com/2008/08/1···de=print
Setting aside for the moment that we'd all like 100/100 connections for $20/month, Moffett's position can be summarized as follows:
- Traditional telephone service is doomed to extinction.
- FiOS is phenomenally expensive [to install and hookup]
- The returns from FiOS aren’t enough to pay for the high costs
- FiOS will be a huge hit with customers
- Verizon won’t go bankrupt, and will even start to look good
He also argues that while uVerse is cheaper, it isn't worth the investment either. Verizon's only rebuttal is that the capital costs of installing FIOS are coming down quicker than Moffett predicts.
Not a lot to argue with there... |
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| Even if he didn't say that FiOS would be a total failure, he still discounted it.
FiOS and U-Verse have been putting a dent in cable growth, if the two services were more widely available I'm sure some Cablecos would be hemorrhaging subscribers. |
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| You have to understand how these guys think and who their audience is - they could care less about the technology or consumer demand. To a great extent, they are technology neutral. All he's saying is that if you have one dollar to invest today and you have a choice of Verizon, AT&T or Qwest, you'd earn the least amount with Verizon.
His position is that the cable companies were stupid to invest so much in upgrading their plant to digital, but since they did (water under the bridge), it makes more sense for them to be the last mile pipe that delivers video, voice and internet than it does for someone like Verizon to create another last mile pipe and compete. |
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2 edits | To a great extent, they are technology neutral. Not really when it comes to Moffett, who tends to be very positioned for or against particular technologies based on what kind and volume of stock his bosses are trying to move.
You've not seen Moffett say much in recent months about how the increasingly falling costs of fiber hardware and the development of bendable fiber (which helps speed up MDU installs) is greatly lowering Verizon's investment costs, or how successful they've been at signing up customers, how returns have exceeded expectations, etc.
As somebody who watched the news ten hours a day, I can truly say Moffett's traditionally been a pretty pro-cable guy, finding even the most inane cable announcement something to crow about.His position is that the cable companies were stupid to invest so much in upgrading their plant And he really likes Qwest's plan of sitting on their hands and just milking outdated copper, consumers, the future, technology, and everything else but stock price be damned. |
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