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Verizon, Cable Industry Scrap Joint Venture
by Karl Bode 02:28PM Thursday Oct 17 2013
You might recall that in 2011 Verizon struck a deal with the cable industry to not only obtain $3.6 billion in cable industry spectrum, but to cross-market one-another's services, with cable ops not pushing Verizon Wireless as a bundle option. As part of that deal, Verizon and companies like Comcast also promised that they were cooking up "magical experiences" that would involve video services that worked across both wireless and wired platforms.

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Well, you can forget about that.

Speaking on today's earnings call, Verizon CFO Fran Shammo stated that the innovation joint venture between Verizon and cable companies "has been terminated." The decision was made on the heels of Verizon's recent decision to buy Vodafone's stake in Verizon Wireless for $130 billion.

Shammo added that while cable and Verizon are headed their "separate ways" in regards to new joint venture services, the existing cross marketing relationships will remain intact.

"Evolving technology and market changes since the joint venture was formed have led all parties to conclude that a joint venture, per se, is no longer needed to deliver innovative services to customers," Verizon said in a statement being circulated to the media. "Verizon Wireless and the cable companies will continue to explore ways to collaborate on technology in the future."

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tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5

So who ends up with...

... the spectrum and other goodies?
Is their a cash value to the Cable co's who started marketing for Verizon, but probably can't expect much of the favor returned later on.
TBBroadband

join:2012-10-26
Fremont, OH

Re: So who ends up with...

the VZW deal will still remain- the MSO promoting cell service and them promoting cable services.
McBane

join:2008-08-22
Plano, TX

Re: So who ends up with...

Has VZW already used the spectrum? If so I guess that means they get to keep it?

We all know that was the primary motivation for Verizon to strike this deal. From what I recall a portion of that deal was the primary reason new FiOS build outs halted into anymore cable markets.

Could we possibly see a renewed expansion of FiOS? I'm just glad I already have it, but it would be nice to know for all those who don't.

Karl Bode
News Guy
join:2000-03-02
kudos:44

Re: So who ends up with...

Yeah the spectrum and co-marketing arrangement of this deal remain intact. The only thing being scuttled is the future plans for bridged services that ran over both cable and wireless networks. Perhaps they were finding the resulting products they were working on lackluster...

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

1 recommendation

Re: So who ends up with...

They're going their "seperate ways"

»m.youtube.com/watch?v=lbIbRlYUip ··· bRlYUipY

--
Petty people are disproportionally corrupted by petty power

tshirt
Premium
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast
said by McBane:

Has VZW already used the spectrum? If so I guess that means they get to keep it?

But how much did cable receive for it? the Cable co's, aren't stupid, they certainly wrote something in to the deal in case it broke up to recover the VALUE provided to Verizon.

said by McBane:

From what I recall a portion of that deal was the primary reason new FiOS build outs halted into anymore cable markets.

Not so, Fios was already stopping/stopped further commitments, and V was moving on to wireless.
I don't believe we'll see any more fios rollouts for a LONG, LONG time, if ever. V is going wireless or bust.

88615298
Premium
join:2004-07-28
West Tenness
said by McBane:

Has VZW already used the spectrum? If so I guess that means they get to keep it?

Um yeah. The AWS spectrum they recently deployed is the spectrum they got from the cable companies. Why wouldn't they get to keep it? The cable companies still got $3.6 billion.
BiggA
Premium
join:2005-11-23
EARTH

Re: So who ends up with...

Exactly. Verizon paid top dollar for it.

skuv

@rr.com
There was never any published plan or any proof of a plan that they were halting FiOS build outs in cable markets. That would be illegal collusion. They would not put it on paper if such an agreement existed.

And at that time, management of Verizon Wireless was separate from Verizon Wireline.
BiggA
Premium
join:2005-11-23
EARTH

Re: So who ends up with...

Yup, their dumbass investors stopped the FIOS buildout long before the cable deal.

Optimus2357
Premium
join:2010-11-21
West Warwick, RI
kudos:3

1 recommendation

Seems like the Cable woke up expecting breakfast in bed and instead got the cold pillow.
SunnyD

join:2009-03-20
Madison, AL

1 recommendation

Who didn't expect this.

This was just a VZW lie to get more spectrum in their pocket.
TBBroadband

join:2012-10-26
Fremont, OH

Re: Who didn't expect this.

the deal with the spectrum from the MSOs was the Co-brand deal for the mobile service partnership- which is still going on.

Who knows what this joint venture would have had or was expected to have.

88615298
Premium
join:2004-07-28
West Tenness
The cable companies did get $3.6 billion for that spectrum.

DrDrew
That others may surf
Premium
join:2009-01-28
SoCal
kudos:20

Cable didn't leave empty handed.

I'm sure cable got some lucrative cell tower backhaul contracts out of it... All those 4G cell connections that have sprung up over the last year need fiber from someone.
--
Start with what you can do, solutions will follow...

88615298
Premium
join:2004-07-28
West Tenness

Re: Cable didn't leave empty handed.

Of course they didn't leave empty handed, they got $3.6 billion. Why are people missing this part?
tmc8080

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

ripoff

Verizon is now broke after buying the vodafone stake at $130Billion. They will be revenue positive several billion dollars in profits (per quarter) assuming the wireless consumer doesn't wise up first and stop throwing gobs of money for pitifully small buckets of data.

This is not the first time Verizon reneged on a promise, certainly won't be the last. The next shoe in the FIOS drama is yet to come in 2014/2015 when docsis 3.1 arrives. Then Verizon has to decide whether they will upgrade FIOS to handle gigabit to the consumer.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: ripoff

It already can handle it. Any nodes with GPON will work fine.

DrDrew
That others may surf
Premium
join:2009-01-28
SoCal
kudos:20

Re: ripoff

said by sonicmerlin:

It already can handle it. Any nodes with GPON will work fine.

How many Gigabit customers can it support when upwards of 32-64 are sharing 2.4 Gbps downstream and 1.2 Gbps upstream?
--
Start with what you can do, solutions will follow...
34764170

join:2007-09-06
Etobicoke, ON
said by tmc8080:

The next shoe in the FIOS drama is yet to come in 2014/2015 when docsis 3.1 arrives.

Execpt DOCSIS 3.1 won't "arrive" until 2016 at the earliest.
tmc8080

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

Re: ripoff

No, equipment for head-end/ctms is released by q2 2014, modems will be in volume production by q2 2015. Depending on industry support (or not) the benefits of 300 - 1 gigabit service might not actually materialize until 2015 at the earliest, not 2016. Much of this is to do with Verizon and AT&T's plans. Why spend millions when you don't have to and can milk the customer for the same payments on slower service. Expect this to happen in the northeast or a google fiber geography first. Not Pueblo Colorado.
34764170

join:2007-09-06
Etobicoke, ON

Re: ripoff

said by tmc8080:

No, equipment for head-end/ctms is released by q2 2014, modems will be in volume production by q2 2015.

Wrong and even if the equipment is released it won't be rolled out over night. Your posts are ridiculously over optimistic.

88615298
Premium
join:2004-07-28
West Tenness
Ok first a lot of that money Verizon used to buy back Vodaphne's share is bonds which don't have to be paid back for YEARS. Also they now get 100% of the profits instead of 55%.

As far as the "small gobs of data". Sorry unlimited data is not sustainable. Something Sprint and T-Mobile will discover as soon as they actually have 4G customers. I'd rather have small gobs of data on network that actually works than have "unlimited data" that I can hardly ever access.
jjeffeory

join:2002-12-04
USA

Re: ripoff

I have T-Mobile 4GLTE unlimited and it works fine where I am. ( Moved from Verizon, thank you). Doesn't work everywhere in the country, but I can roam to other countries and use data for free. Thanks!
34764170

join:2007-09-06
Etobicoke, ON
said by 88615298:

As far as the "small gobs of data". Sorry unlimited data is not sustainable. Something Sprint and T-Mobile will discover as soon as they actually have 4G customers. I'd rather have small gobs of data on network that actually works than have "unlimited data" that I can hardly ever access.

and that is why wireless is a complete joke.

88615298
Premium
join:2004-07-28
West Tenness

Re: ripoff

There are times when I need a data connection and wireless comes in handy. So I wouldn't say that's a joke.

Wireless will never be as good or better than wired. That's just factual even if some people want to believe there is some conspiracy to hold back data. Can't change the laws of physics.

I will say there WILL be improvements. For example in Verizon's case. With the recent deployment of AWS spectrum and assuming they get some 600 MHz spectrum and once they convert their 3G and 1X spectrum for use in LTE and once they deploy LTE-A and with the addition of mini-towers capacity can increase many fold. Unfortunately this process will take years. Verizon's own table for refarming 3G and 1X spectrum is 7 years from now. Though they will begin to refarm some of their 3G in 2015.
34764170

join:2007-09-06
Etobicoke, ON

Re: ripoff

said by 88615298:

Wireless will never be as good or better than wired.

I do not want it to be as good or better. I just want it to be even remotely in the same ballpark and it is not even close.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

Now that you broke up with Comcast

Now bring me FiOS.

That deal was shady to begin with as they technically compete with each other on the same turf. I just hope I can continue to bundle home phone with DirecTV.

DSL, while not that great remains an option if you get real angry at Comcast. When I had DirecTV installed earlier this year, my installer told me he had a customer that was so angry at Comcast he moved his home phone and internet to Verizon and TV to DirecTV. You must be really angry at Comcast to trade a 50 Mbps connection for a 3 Mbps DSL connection. The only time I'd go back to DSL is if the only other option was no internet at all but I would probably use an expensive wireless connection over DSL.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner and I currently have DirecTV. They are much better than broadcast TV.

I have not and will not cut the cord.

YukonHawk

join:2001-01-07
Patterson, NY
Reviews:
·Comcast

Re: Now that you broke up with Comcast

Maybe one of these days as technology evolves, satellite broad brand will have no latency issues and be worth the monthly payments. Hopefully they'll up the gigs per month too for usage. Who knows!

skuv

@rr.com

Re: Now that you broke up with Comcast

It would be impossible for satellite broadband to not have latency issues. The speed of light is not going to change. The satellites are 22,000 miles in space. That's about 500ms of latency because that is as fast as the signal can travel from the Earth to space and back to the Earth again.

xpbx
220, 221, Whatever It Takes.
Premium
join:2000-11-08
Reviews:
·Shaw
·Verizon FiOS

in other words...

nothing has changed.

"...the existing cross marketing relationships will remain intact."

the companies in collusion "say" they have gone separate ways but only to further the same agenda.

NOTHING EVER CHANGES, though it could slow down.