Fiber-to-the-Business (FTTB) Deployment Continues to be Main Preoccupation at Verizon, According to Study

Subsidizing Costly Fiber-to-the-Home (FTTH) Activities



14 Mar, 2006, 00:00 ET from BIA Financial Network, Inc. from ,Telecom Pragmatics

    CHANTILLY, Va., March 14 /PRNewswire/ -- Contrary to conventional wisdom
 in the telecom industry, Verizon's access strategy is not based on delivering
 fiber to residential customers, but rather it is centered around the
 deployment of high-speed bandwidth links to as many large enterprise customers
 as possible.  This major conclusion can be found in a joint report recently
 released by BIA Financial Network and Telecom Pragmatics.
     "Just as in the old Ma Bell days when the higher margins from long-
 distance revenues subsidized the high costs of local service, Verizon appears
 to be counting on high profitability from FTTB to make up for expected
 shortfalls with FTTH installations.  The vast majority of the RBOC's
 installations of fiber within its footprint are along the Interstate-95
 highway corridor," said the report's lead author, Sam Greenholtz, co-founder
 of Telecom Pragmatics.  "Most of the large businesses in its territory tend to
 be located within 20 miles of either side of I-95."
     "Verizon's Charging Forward with FTTP: Will Credit Markets and Regulators
 Get in Its Way" is based on in-depth interviews with service providers,
 including Verizon, SBC, BellSouth and others. In addition to Greenholtz, who
 spent 28 years at Verizon and its predecessor companies, contributors include
 John Spencer, who worked for BellSouth for nearly 30 years, veteran industry
 analyst Mark Lutkowitz from Telecom Pragmatics, and BIAfn financial analyst
 David Gross.
     "Industry observers need to realize that while there will continue to be
 substantial deployment of FTTH, especially in communities located near large
 businesses, Verizon's primary concern is in becoming the leading managed
 service provider to the enterprise space in the nation," said Gross.
 "Providing services to residential subscribers is truly a secondary concern."
     BIA Financial Network is a leading financial and strategic advisory firm
 serving the media and communications industries, and Telecom Pragmatics is an
 independent research and consulting firm for the telecommunication industry.
     "Verizon's Charging Forward with FTTP" is available for purchase. For more
 information, call 800.331.5086 or email reports@bia.com. Additional material
 on this report can be found at, http://www.bia.com/TelecomReports.htm.
 
     BIA Financial Network, Inc. (BIAfn) has served the media and
 communications industries for more than two decades with financial and
 strategic advisory services, as well as a comprehensive array of research and
 investment resources. Telecom Pragmatics is an independent research and
 consulting firm, with principals who have specialized in telecom service and
 equipment markets for nearly thirty years. Information on the companies and
 the report is available at http://www.bia.com/TelecomReports.htm.
     A complete version of this release is available at
 http://www.bia.com/common/pressitem1.asp?id=1093.
 
 

SOURCE BIA Financial Network, Inc.; Telecom Pragmatics
    CHANTILLY, Va., March 14 /PRNewswire/ -- Contrary to conventional wisdom
 in the telecom industry, Verizon's access strategy is not based on delivering
 fiber to residential customers, but rather it is centered around the
 deployment of high-speed bandwidth links to as many large enterprise customers
 as possible.  This major conclusion can be found in a joint report recently
 released by BIA Financial Network and Telecom Pragmatics.
     "Just as in the old Ma Bell days when the higher margins from long-
 distance revenues subsidized the high costs of local service, Verizon appears
 to be counting on high profitability from FTTB to make up for expected
 shortfalls with FTTH installations.  The vast majority of the RBOC's
 installations of fiber within its footprint are along the Interstate-95
 highway corridor," said the report's lead author, Sam Greenholtz, co-founder
 of Telecom Pragmatics.  "Most of the large businesses in its territory tend to
 be located within 20 miles of either side of I-95."
     "Verizon's Charging Forward with FTTP: Will Credit Markets and Regulators
 Get in Its Way" is based on in-depth interviews with service providers,
 including Verizon, SBC, BellSouth and others. In addition to Greenholtz, who
 spent 28 years at Verizon and its predecessor companies, contributors include
 John Spencer, who worked for BellSouth for nearly 30 years, veteran industry
 analyst Mark Lutkowitz from Telecom Pragmatics, and BIAfn financial analyst
 David Gross.
     "Industry observers need to realize that while there will continue to be
 substantial deployment of FTTH, especially in communities located near large
 businesses, Verizon's primary concern is in becoming the leading managed
 service provider to the enterprise space in the nation," said Gross.
 "Providing services to residential subscribers is truly a secondary concern."
     BIA Financial Network is a leading financial and strategic advisory firm
 serving the media and communications industries, and Telecom Pragmatics is an
 independent research and consulting firm for the telecommunication industry.
     "Verizon's Charging Forward with FTTP" is available for purchase. For more
 information, call 800.331.5086 or email reports@bia.com. Additional material
 on this report can be found at, http://www.bia.com/TelecomReports.htm.
 
     BIA Financial Network, Inc. (BIAfn) has served the media and
 communications industries for more than two decades with financial and
 strategic advisory services, as well as a comprehensive array of research and
 investment resources. Telecom Pragmatics is an independent research and
 consulting firm, with principals who have specialized in telecom service and
 equipment markets for nearly thirty years. Information on the companies and
 the report is available at http://www.bia.com/TelecomReports.htm.
     A complete version of this release is available at
 http://www.bia.com/common/pressitem1.asp?id=1093.
 
 SOURCE  BIA Financial Network, Inc.; Telecom Pragmatics