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News and comments on community broadband networks, the communities deploying them and the technologies that support them. Published by Denise Frey and Al Bonnyman.

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Monday, December 22, 2003

 

Press coverage of Verizon's FTTP announcement earlier today

Several articles have come out since Verizon announced additional FTTP (fiber to the premises) vendors and deployment details this morning.

Jo Maitland with Light Reading quotes both our earlier blog entry and the Verizon press release, then goes on to clear up several questions I had asked. First, Verizon will definitely offer video but is not saying exactly what. Second, Verizon will do most of the OSS software work in house and admits it will be extensive.

Finally, Ms. Maitland quotes a Legg Mason analyst who asserts "that these contracts are "non-exclusive pacts that guarantee no certain volumes ... these vendors have been invited to participate in the start-up phase of a long-term last-mile-of-the-network conversion that is, in our view, likely to take several twists and turns as standards evolve, bandwidth requirements increase, and the competitive landscape shifts. How it will all play out and which vendors will be the big winners in the FTTH build out five to ten years down the road, we believe, is impossible to know at this stage of the game.'"

TheStreet.com has an article looking at the economics of FTTP for the Bells and concluding they're unimpressive, based on one third of the homes passed signing up for voice and data service. That analysis makes no sense to me however, since probably 90+% of the homes will take phone service (they're already using Verizon, aren't they??) and probably at least half will take data services (since they'll be so much faster than anything available from competitors). That leaves video as the battleground. If no homes take video services, then Verizon's investors probably will be disappointed. If, on the other hand, Verizon gets its' act together on video delivery, programming, pricing and marketing, then its' FTTP investment could be very profitable.

Broadbandreports.com's article looks at some of the regulatory politics associated with the Bells and FTTP; the article in turn pointed me towards a good article by Bell-watcher and broadband guru Dave Burstein. Dave notes that the Bells have just about worn out their welcome at the FCC if they don't go ahead and get going on FTTP deployments.

Dave's own website, DSL Prime is a weekly must-read. Nobody knows more about what's really happening at all the Bells than Dave does and it will be interesting to read his comments on today's news when he posts them.

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