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1 edit | DSLPrime has a great article about this: FiOS buildout is dying
Written by Dave Burstein
Seidenberg's on the way out and Verizon is changing. They have now cancelled planned FiOS deployments for all new territories such as Alexandria, Virginia. According to Bryant Ruiz Switzky in the WIvan and Daveashington Business Journal, Verizon is "suspending Fios franchise expansion nationwide." They are "indefinitely postponing" building Alexandria after telling the city they would begin construction several months ago. Alexandria is one of the richest suburbs in the world and a natural part of the network with a lower than average likely construction cost. Verizon "will now focus on installing its network and gaining market share within the areas where it already has agreements." Bostonians and 10M other Verizon customers are apparently screwed.
Verizon has buildout committments to New York and other cities that will keep some crews working, but had already suggested they might cut FiOS builds by 2/3rds in 2011. This is now a further cutback, cancelling areas that for years they had been promising to serve.
Ivan in an investor call suggested one reason they may be cutting their investment: the broadband plan and stimulus are reducing company spending. So Seidenberg suggested he might ask for government money, and the broadband plan has many "incentives" for him to spend less company money. Blair should take this as a signal to yank any offers to pay telcos to upgrade broadband where it already is available from cablecos or others. Smelling government money, they are cutting back their own investment and then demanding the government pay them instead. 2009 was almost certainly the worst year in a decade for expanding broadband in the U.S. Comany after company cancelled firm plans waiting for the government to pay them for what they intended to do without subsidy.
Over the last few years it's become apparent that Seidenberg's personal desire to beat the competition has been the primary reason the U.S. is not further behind. FiOS is the largest new network built in the Western world. Cable's DOCSIS 3.0 was developed as a response to FiOS. Brian Roberts of Comcast tells the story of looking Ivan in the eyes, deciding he was going ahead, and then giving orders to his team and Cablelabs to go full steam ahead on DOCSIS.
Euille said Alexandria citizens are clamoring for Fios and often dont understand why it isn't available. "I'm sure the citizens are just as disheartened by this outcome as I am" he said, adding that the city will look at alternatives.(Switzky) Alexandria can't afford for the neighboring towns to have better Internet service, so building their own network is the obvious step. | |
|  cacoPremium
join:2005-03-10
Whittier, AK | Re: DSLPrime has a great article about this: Maybe I missed something but this is the same exact thing that karl just wrote, so why bother posting this? | |
| | | | Re: DSLPrime has a great article about this: Actually Dave just e-mailed me this -- had a little extra info to round it out...I think it's on topic. | |
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1 edit | said by sonicmerlin: Ivan in an investor call suggested one reason they may be cutting their investment: the broadband plan and stimulus are reducing company spending. So Seidenberg suggested he might ask for government money, and the broadband plan has many "incentives" for him to spend less company money. Smelling government money, they are cutting back their own investment and then demanding the government pay them instead. 2009 was almost certainly the worst year in a decade for expanding broadband in the U.S. Company after company canceled firm plans waiting for the government to pay them for what they intended to do without subsidy. This is what happens when the government starts interfering in private businesses. Seidenberg's stockholders would string him up by the thumbs for spending company money when the government is falling all over itself to give it to them for nothing. Now those without Fios will have to beg their elected officials to give it to them. | |
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4 edits | Re: DSLPrime has a great article about this:
This is what happens when a captured regulatory agency has a history of handing out money and favors to corporations instead of giving it to competitors who actually want to build out infrastructure. Burstein himself has stated how stupid an idea it is to hand out money to incumbents for buildout in areas that already have broadband.
The money should be going to small rural telecoms who have demonstrated an actual desire to provide service to their customer base.
And your jab at the "socialist state" is so idiotic it makes me sick. Places like Sweden provide free education and free healthcare, has a much lower level of national debt than we do, and yet still provides their citizens with much better broadband than us.
Your idea of capitalism is simply to reward those who have gotten rich by helping them stay rich. | |
| | | NormanSPremium,MVM
join:2001-02-14
San Jose, CA
kudos:4 Reviews:
 ·SONIC.NET
·Pacific Bell - SBC
| Re: DSLPrime has a great article about this: said by sonicmerlin:And your jab at the "socialist state" is so idiotic it makes me sick. Places like Sweden provide free education and free healthcare, has a much lower level of national debt than we do, and yet still provides their citizens with much better broadband than us. What is the average tax rate in Sweden? All of those "free" services are costing somebody something. And those costs have to be recovered somewhere.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum | |
| | | | | | Re: DSLPrime has a great article about this: said by NormanS:said by sonicmerlin:And your jab at the "socialist state" is so idiotic it makes me sick. Places like Sweden provide free education and free healthcare, has a much lower level of national debt than we do, and yet still provides their citizens with much better broadband than us. What is the average tax rate in Sweden? All of those "free" services are costing somebody something. And those costs have to be recovered somewhere. Sweden's personal tax rate is higher than ours, although their corporate rate is lower than ours.
And I'm having trouble seeing how that is at all related to the buildout of fiber. The government of Sweden didn't spend nearly as much as the US did to subsidize the buildout of fiber or internet services. The regulators in Sweden are simply much stricter and set rules that benefit the people rather than the corporations. | |
| | | | | NormanSPremium,MVM
join:2001-02-14
San Jose, CA
kudos:4 Reviews:
·SONIC.NET
·Pacific Bell - SBC
| Re: DSLPrime has a great article about this: said by sonicmerlin:And I'm having trouble seeing how that is at all related to the buildout of fiber. You are the one who brought up the "free this" and "free that" in Sweden. What did education and health care have to do with fiber deployment in the first place?
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum | |
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