dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
1
share rss forum feed

Skippy25

join:2000-09-13
Hazelwood, MO
reply to ITALIAN926

Re: Enough Savings to Expand FIOS?

Yes, but that is the smart patient thing to do. Which is completely contrary to the day trader mentality that you need to get in make your quick money and then get out. Today's investors, like the many you see trolling here, dont care about long term viability of a company.


Crookshanks

join:2008-02-04
Binghamton, NY

You do realize that day traders represent a small percentage of the daily trading volume and an even smaller percentage of overall market capitalization, right? The majority of investments in the US Market are held by retirement and pension funds, that are in it for the long haul, and not inclined to engage in day trading or take short term positions.

There are a lot of things wrong with our economic culture, ranging from your neighbor who bought too much house, to the CEO with the golden parachute, to our borrow, print, and spend Federal Government. I'm just not convinced that Verizon's actions are that outlandish here. They don't have a limitless amount of money to spend on CapEx, so where should they allocate the resources that are available? To the growth market that is wireless or the mature market that is landline?

There are still tens of millions of Americans without smart phones. There are still huge coverage gaps in their wireless footprint. They still need to expand data capacity in many wireless markets.

Contrast that with wireline, where they have how many (five or six digits worth?) ONTs are sitting idle (translation: customers we can get with a small marketing budget and zero CapEx)? Contrast the relatively unregulated wireless market to the mandates they face in wireline. Consider the fact that they face entrenched competitors, the fact that wireline voice service is dying, and even cable television service is threatened as cord cutting goes mainstream.

Where would you like to see Verizon invest CapEx right now, thinking of your investments in them, which you doubtless have if you have a 401(k)?

They'll come back to wireline in the markets they still hold, once the wireless market matures. They aren't liable to find a buyer for what's left of the copper network, Frontier is tapped out, and I doubt anybody is going to raise capital to try and purchase that ancient network.



ITALIAN926

join:2003-08-16
kudos:2
Reviews:
·Verizon FiOS

1 recommendation

They spent 130 billion in money they dont have to buy-out Vodafone, they can likewise spend another paltry 30 billion to migrate the rest of their wireline footprint to FiOS. Whether you like it or not, they still have responsibilities here as an ILEC.


Skippy25

join:2000-09-13
Hazelwood, MO
reply to Crookshanks

I wasnt speaking of actual day traders so I guess I used the wrong term as I failed to think of that inadequate group as you pointed out. I was speaking of the extremely short sighted traders that may or may not hold on to a stock for even a day, a week or a month.

I think I was pretty clear in many post here that I would like to see their CapEx invested in the long term viability of the wireline infrastructure.

Wireless, still relies on wireline and is probably decades away, if ever, from being a replacement to it for many applications. Saying that wireless has not matured I think is a little over stated.

Wireless will probably never mature if you are speaking of a final wireless protocol as they will always make improvements to it being it is so inadequate compared to wired. They will continue to invest billions upon billions over the next several decades just to keep up with it. Wired on the other hand can be vastly improved one time around and will last decades with only maintenance and minor improvements.

If you are speaking of coverage, I would be willing to be more people can get wireless than can get wired. But that is just me speculating.


tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
reply to ITALIAN926

Verizon acting in the so-called PUBLIC INEREST died sometime in 2006 - 2008 when AT&T was allowed to creep away from it's promises post Bell South merger.. Although this is some what a chicken & the egg-- or chicken little story (take your pick). Verizon will use about 99.9999% of profits to benefit top management, PREFERRED shareholders, and NOBODY ELSE.. since the record speaks for itself in the last decade.


Crookshanks

join:2008-02-04
Binghamton, NY
reply to Skippy25

said by Skippy25:

Wireless, still relies on wireline and is probably decades away, if ever, from being a replacement to it for many applications.

Never claimed that it was a replacement, just that it likely makes more sense for them to invest their limited CapEx monies in wireless at the current moment in time.

said by Skippy25:

Saying that wireless has not matured I think is a little over stated.

It's a growth market, tens of millions of people without smart phones, vs. a hellva lot less people without access to Triple Play from an MSO or POTS/DSL/Satellite combo (not exactly the same, but still bundled billing, and lots of people are happy with it....)

Think about it, how many people do you really know without access to Triple Play?

said by Skippy25:

Wireless will probably never mature if you are speaking of a final wireless protocol as they will always make improvements to it being it is so inadequate compared to wired. They will continue to invest billions upon billions over the next several decades just to keep up with it. W

I'm speaking about the market itself. It's infinitely easier to get new customers than it is to steal customers away from a competitor, which is what they have to do if they seek to expand FIOS. They're right to focus on houses that already have access to FIOS (particularly those with unused ONTs hanging off the house....) but went with the MSO before they worry about expanding the footprint.

It's all about ROI, and it's higher in wireless right now.