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[ NNSquad ] Re: [IP] The Press Realizes The FiOS Party Is Over

If you think about it the question is not why they stopped deploying FiOS, the question is why they started. The bet was that owning the best network was more important than owning the best content. Verizon, like others, is desperately trying to find more profitable businesses. As I’ve pointed out HBOGo means that Comcast can make the money on the content over Verizon’s fibers just like Vonage did.


The companies that make money on content can price-bomb the bits – there is no essential product differentiation. Verizon has learned a lesson from ATT – if the business is bits no one care what the bits ride (other than the PR flacks and those mesmerized by shiny glass). If there is abundant capacity how can one maintain any price for bits.


The question now is when is Verizon is going to get off the fence and decide whether the future is using the network or owning the network. Each has a very different business climate – in the former the skill is creating services and in the latter the skill is minimizing costs and maximizing capacity.


More to the point when will shareholders wake up and make their own choices as to the business they want to invest in?


As to laying off craftspeople – another reason to demand that the infrastructure be operated by companies that care about the infrastructure not just in using it to advantaging their services by limiting the supply (yet again – http://rmf.vc/?n=AssuringScarcity). And rather than repairing the crappy copper – why not use adaptive electronics and protocols that don’t care which pair they ride. When will the shareholders care and demand better use of resources?



From: Dave Farber [mailto:dfarber@me.com]
Sent: Saturday, April 03, 2010 22:00
To: ip
Subject: [IP] The Press Realizes The FiOS Party Is Over


Begin forwarded message:

From: David Lesher <wb8foz@panix.com>
Date: April 3, 2010 8:55:33 PM EDT
To: dave@farber.net (David Farber)
Subject: The Press Realizes The FiOS Party Is Over

Note that Verizontal has also been harping, in PSC-MD filings,
how [in effect] the copper plant is not worth fixing, as they're
so busy replacing it with FIOS anyhow.

This midst years of complaints about poor POTS service; it now
routinely takes about a week to get a POTS line fixed;
that's a week out of service. Post-blizzard, a friend was down
for 3 weeks.

So will this FIOS cutoff mean that Verizontal will: suddenly do
an about face, step up to the plate, and start to fix the crappy
outside copper plant they've let fall by the wayside?

Don't hold your breath, Prof F.... they just laid off another
800 outside craft people.