|reply to tschmidt |
Re: We are not alone (Verizon sells assets to Frontier)
said by tschmidt:I think the VZ moves make a lot of business sense. Now they don't have to run FIOS to rural areas, which is less (or un)profitable. They get rid of regions with shrinking revenue as more, and more rural and suburban customers go wireless only. They can offer the triple play in urban areas, competing with cable. And when Fairpoint or Frontier go bankrupt they can be a white knight, buying back the old territory for less than they sold it. That's easy growth that makes VZ stock go up. Win, win, win (except for the customers who lose
I don't understand rationale for selling off territory. Sure rural areas are difficult to upgrade and less profitable to operate. But at some point they will have saturated most profitable areas. At that point the only option for growth will be to go into less desirable areas. They have foreclosed that opportunity.