Monday, August 15, 2011

Why Did Verizon Waste Time and Money on fiber?


I know hindsight is always 20/20 but I was wonder why Verizon never used all that wonderful copper to it’s advantage? The CEO came out last week and said that fiber is not as profitable to Verizon as the copper was. So let me ask this why didn’t Verizon get into competition with cable companies? It has the copper why didn’t it offer it’s own cable service over it’s own lines? It could have been miles ahead of the big boy’s like Comcast and Time Warner. I ask these questions because I got to thinking about this now at a time when Verizon faces a  lawsuit challenging it’s very use of the fios technology since it lost a patent case last week. Why did Verizon waste the time and money to lay fiber down? When it could have used the existing copper lines on poles that it owns to offer customers another cable company choice. If you mix this in with the wireless division, then the Verizon might look something like the giant that Comcast is. Like I said earlier hindsight is always’ 20/20 but I feel the management team at Verizon screwed up royally, by wasting company assets on a venture that’s not as profitable, if it had merely offered extra services over existing infrastructure. Another point I’d like to make is even if the execs over at Verizon wanted to play with fiber they could have kept it in the back-end and improved network performance  through the various switches routers that they use much like Comcast does now. Again hind sight is 20/20.

1 comment:

  1. Are you serious? Do you recall something called DSL over the legacy copper lines? It only gets up to a few Mbps. Can't compete with cable using that as your medium. Besides, the old copper is much less reliable than fiber. IOW, Verizon didn't have much choice in going to fiber (except broadband wireless - which would've had much more severe growing pains than FIOS did).

    If Verizon didn't go to fiber, and still had only POTS and DSL, then it'd be losing subscribers & $'s to cable with NO fiber income. They're MUCH better off with FIOS than if they'd done nothing. CEO is just lamenting "the good old days" when copper was still king and profit margins were better (read that as "monopoly").

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