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elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Verizon FiOS

2 recommendations

reply to silbaco

Re: Maintenance

They may desire to get to a critical mass so they can shed the must-carry service, but by no means does Verizon WANT to give up profitable customers. That's total bs.

The problem is that infrastructure costs while may be going down SLIGHTLY, labor is not so call it a wash. These costs need to be AMORTIZED over the customer base.

So for instance say it costs $1000 opex for 100 users ($10/user/mo), and 30 leave for cable. Now that cost is still $1000, but now only 70 people, so now it costs $14/user/mo). Guess what, profit margins need to be maintained, so prices go up. Not rocket science.

As this death spiral continues until Verizon asks for regulatory relief, and they sell off the remaining lines to some small regional player who may invest in next gen and do something with it. But make no mistake, they are riding this horse into the ground, and it is the right move. Copper is dead, so why throw good money on bad.

Verizon needs to sink their capital budgets into LTE to keep ahead, and once they complete in 2014, then they can go back and refarm and potentially add fiber to profitable areas, but they aren't going to add fiber to some farm with 2 houses per 80 acres. They are going to get LTE or whitespace, and it's going to be expensive AS IT SHOULD. If it cost verizon $1000 to wire 20 houses in my neighborhood (not true), and $2,000 to wire a farm, guess what--if you owned a business what would you do? Wire a house for $50, or $2,000?

Add to the fact that replacing copper is very expensive and moving to newer line cards/technology (VDSL2, etc) give minimal uplift especially if they are not going to do video on it.

So this is what happens when a technology is disrupted with legacy collateral damage, it dies a very expensive, ugly, and painful death.


N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:2

2 recommendations

IMHO, Verizon deployed Fios in all the markets they have any interest doing "land line" business in, and to hell with the rest. The people making these decisions are rather intelligent & have at least some vision for the future.

Deploy Fios in the markets where you know you can turn a profit, screw the rest. Let the copper plant decay until they can offload it, and focus on LTE & Fios.

Verizon has ZERO REASON to maintain their copper footprint. It's expensive to maintain, over regulated, and essentially obsolete.

If I were at the helm at Big Red I would be doing everything I could to get out from under that copper albatross and focus on Fios & wireless.

Less regulation & more profit. It's a no brainer.....
--
Petty people are disproportionally corrupted by petty power