Tuesday, August 12, 2008

Why Are You in the Access Business?

I have hit this rant before: Why are you still in the Access Business? News this quarter proves that the pure access business is a Red Ocean:

  • Video: DISH Takes a Hit. FiOS + U-Verse have not exactly caught on fire. And VZ is only rolling out FiOS in communities that they can predict a 25% market share. So far they have not hit that (according to the latest figures I have seen.) So that plan to do IPTV... maybe put it on the backburner.
  • Cellular - Wireless Growth to Slow Down, just ask Sprint, Alltel or T-Mobile. If it was rosy would VZW being doing Wholesale Wireless deals with LightYear MLM?
  • Landline - analysts are talking about is a merger between Embarq and Windstream due to 8% landline loss per quarter. VZ has dumped all its rural plant.
  • Broadband - Growth plummets for two straight quarters.

Repeat after me: Layer 7! Layer 7! Managed Services.

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