Verizon's Copper-to-Fiber Migrations Set Glacial Pace
Company Pushing Most Users to LTE, Cable
Given Verizon's FiOS expansion has stopped in most places (unless you're somewhere with franchise obligations), the only way DSL users will be getting FiOS is if your regional core infrastructure is upgraded and
your line is perennially problematic. During yesterday's earnings call Verizon stated
they migrated some 223,000 "troublesome" lines from copper to fiber, most of those in regions impacted by Sandy.
The company says they plan to migrate another 300,000 copper users in 2013. With 3.3 million copper users, Dan Jones at Light Reading
correctly notes that's a rather slow pace:
The transition from copper to fiber in areas where FiOS is available, however, will be a long-term process. Shammo said Verizon hit its target of 200,000 customers moved in 2012 and that "our target is 300,000 this year." Verizon currently still has some 3.3 million customers on copper. So it will be a long-term process for Verizon to actually see all the savings it gets from not operating copper, particularly as its FiOS footprint in the U.S. is by no means comprehensive.
Unmentioned is what happens to the majority of the rest of those un-upgraded customers. As we've been noting, Verizon's hiking prices on many of them by forcing them to bundle old-fashioned voice service
, which either results in those users fleeing to more-expensive and heavily capped Verizon LTE, or into the arms of cable operators
. That's assuming that Verizon doesn't engage in another round of asset sales to a smaller telco. These are customers Verizon simply no longer wants, but the telco's beating around the bush about that fact.
Re: And what ?
said by BosstonesOwn:I still don't believe there is. I think Verizon's goal is to force users to their Fixed LTE service with low caps and high overages.
And people are saying there was no gentlemans agreement with the cable co's ?
Any of those people want to buy a bridge in brooklyn , real cheap. You can even put up tolls in both directions if you want !
If they get rid of a few high bandwidth users in the process, I doubt they'll care.
Re: And what ?
said by silbaco:This is why Verizon needs more spectrum. I'm pretty sure any spectrum they get from the OTA TV auctions will be used solely for fixed LTE or it should. Of course it'll be 3 years before that gets deployed. And also when they refarm their 1X and 3G spectrum some of that can be used for fixed LTE. But that might not happen for 8 more years.
Fixed LTE cannot handle that many users. The network is already starting to slow down in some areas just because of phones and tablets.
| Think about it. You run a business. The mission is to be profitable. If Verizon "coerces" DSL users to bundle POTS with internet this is way more profitable than converting to a FIOS 3-play in the near term.|
They have to know that the prices of the optical/LTE equipment is only going to go down, so the longer they sweat the assets the better they are. Once they switch to advanced, they get way more capacity and distance.
Only if it becomes more expensive to maintain copper does it make sense to convert them to FIOS. With cable already offering a superior product to DSL, upgrading the infrastructure doesn't make any sense unless they go optical or LTE.
LTE is a luxury right now, but over time it will become more affordable once they can get enough backhaul capacity and go to advanced.
Out of all the major telcos, Verizon by far is the most progressive on both wired and wireless, so I don't know why there is always bashing going on.
In my area it's patchy. Some have FIOS, others don't. I get the impression that the communities that didn't get it are in general hostile to business, so they get what they deserve. For sure Buffalo gets the shaft. Interestingly enough though, the downtown is heavily wired for optical for businesses.
I'm here to say that FIOS is leaps better than Time Warner in customer service and product, and my Verizon cell can't even be touched in UNY and in the NE in general. Oh, and my cellular ipad (Verizon) is so fast I can't tell the difference between a Wifi or LTE link.
said by silbaco:Oh really?...Verizon said the party for new suburban and rural FIOS was over two years ago after the short-investors beat the CEO like a rabid dog.
My prediction, once they move more people to FiOS, they will re-investigate deploying FiOS to other cities. FiOS is profitable.