N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
 ·Verizon FIOS
 ·Verizon Online DSL
| reply to N O Y B
Re: Verizon Again Tweaks DSL Bundles
Not cost effective in the long run.
The real goal with Fios is to sell the TV portion of it. That's where the real revenue stream is.
Running fiber to the node would be short sighted, and would run Verizon straight into bankruptcy. By the time they invested the money into all that FTTN and copper interface, they would still be stuck with eventually running FTTP.
Verizon's best bet is to continue on as they are now. Deploy as much FiOS as they can, and get as many TV customers as they can.
The bottom line is nothing can grow forever. Companies, the economy, incomes. All are subject to eventually corrections and contractions.
Verizon, and the shareholders (that's the shareholders of all companies mind you) are going to have to realize that the days of never ending rising profits are over.
People really have lost sight of the fact that these corrections in the business cycle are a natural progression of the economy as a whole and are sometimes necessary.
For too long now, we've propped up bubble after bubble (Dot com, housing, commodities) and the whole thing has gotten out of hand.
We've been due for a couple down years. In the same way a naturally ignited forest fire clears the dead timber from the forest floor, a down economy flushes out the poorly run businesses. The well run businesses emerge on the other side lean, mean and ready to compete.
The poorly run businesses die.
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Petty people are disproportionably corrupted by petty power… |
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probboy
join:2008-01-10
Natick, MA
| said by N3OGH  :Running fiber to the node would be short sighted, and would run Verizon straight into bankruptcy. By the time they invested the money into all that FTTN and copper interface, they would still be stuck with eventually running FTTP. Why would running fiber to the node bankrupt VZ but not FIOS (I'm not trying to be sarcastic or snide, I'm actually curious)? If the ultimate goal is FTTP, can it be done in two phases, with the first being FTTN and the second extending FTTN to the home? |
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N3OGH
Bear patrol must be working like a charm
Premium
join:2003-11-11
Philly burbs
·Verizon FIOS
·Verizon Online DSL
| The systems don't work that way.
The way Verizon would likely deploy a FTTN system would be to install multiple RT's and serve the adjacent areas with DSL. You're looking in the neighborhood of at least $15,000 to install a remote terminal. To deliver 7 MBS service to an entire area would cost a fortune. Perhaps almost as much as installing FiOS instead.
The fiber run to the RT would not be usable as part of the Fios network installed in an area served by a given central office. Besides, the bulk of cost associated with a RT is the vault, mini DSLAM, etc.
Upon upgrading a given CO to FiOS, all those RT's become legacy equipment.
I really don't see how Verizon could ever recover the costs associated with deploying FTTN this way. I can't think of any other way they would do it.
In areas that FiOS hasn't reached yet, Verizon is going to lag. There's just no other way around it.
The FTTN solution costs a truck load of money, and is for lack of a better term, a half assed solution. Better to sink your working capital into the real deal and getting as many TV subs on board as possible.
Make no mistake about it, FiOS isn't really about fast internet, at least not for Verizon. It's simply a juicy by product of that fiber optic goodness that lets Verizon sell people TV.
FiOS is all about the boob tube for Verizon. That's where the real cheesecake is...
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Petty people are disproportionably corrupted by petty power… |
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AMDUSER
Premium
join:2003-05-28
Earth
clubs:
 ·RoadRunner Cable
| reply to N3OGH
said by N3OGH :"..Running fiber to the node would be short sighted, and would run Verizon straight into bankruptcy. By the time they invested the money into all that FTTN and copper interface, they would still be stuck with eventually running FTTP..." This does a good job of describing AT&Ts Uverse depoyment. Too short term, higher cost of deployment (then expected) partally due to not enough spare pairs; the 26 gauge wiring does not help either. The limited coverage availablity for the service areas is detrimental to who can get service (more coverage= more people who could possibly get service.). |
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Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ | reply to N3OGH
Thanks for posting exactly what I wanted to say. |
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