Sunday, October 31, 2010

VZ Losing DSL

DSL Reports writes "Verizon Adds 226k FiOS Users, Loses 165k DSL Users". On the face of it, they want more FiOS customers, but that also means that they will "start" neglecting DSL infrastructure.

Income is down because they have to keep paying employees to leave.

ILEC's with declining copper revenues will be spending less on maintenance and support of that infrastructure. The RBOC's only care about Cellular growth. Something to think about as it affects your business - agent, CLEC, ISP or other.

BTW, Sprint lost a boatload of money on $8.15B in revenue while adding 644,000 total wireless subscribers. Here's an IXC that has totally forgotten that the pin dropped.

Even Tier 2 wireline is experiencing steady landline losses of "between 5 percent and 10 percent annually and service revenues are holding even at best, even with boosts from new broadband and enterprise IP services. Wireline operators are falling behind cable operators' broadband service offerings. FCC figures show cable with a 53 percent market share compared to 37 percent for DSL and 5 percent for fiber." [FierceTelecom]

Most of these consolidations are about "synergies" and "cost savings" by cutting labor expenses and closing offices. That's it. So poor service and not much innovation to draw on for addition future revenue. Good thing we had BTOP and BIP to prop some of these ILEC's up.

No comments: