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There was a significant amount of flattening in the initial digital rollout, between SLC-96 and 5ESS remotes (GTD5 and DMS all have similar constructs) they did
by Aloha 11y ago
There was a significant amount of flattening in the initial digital rollout, between SLC-96 and 5ESS remotes (GTD5 and DMS all have similar constructs) they did eliminate some very very small suburban offices. But there was not really another round of office consolidations after the last big round of mergers - with the replacement of the legacy TDM hardware with newer soft switches however this is happening.
This article however touches on an issue unique to Verizon, which is they're letting their copper plant rot in the field, as a way to force customers off of it (the railroads did much the same thing with passenger service in the early 50's) when Frontier has bought a former GTE/Verizon area, they usually have to hire a bunch more in the way of field techs, and spend millions on OSP upgrades and repairs - to the point that additional FiOS expansion in the immediate future is unfeasible due to cost.
The future is going to have a mix of wireline and wireless - and some of it will still be copper, I still believe the best architecture for the future is FTTN (fiber to the node) with a node every block (or 3-400 yards) allowing for sub 1000 ft loops. I still think this offers the best price/performance ratio.
- zw123456 11y agoAgreed, at this point the wired services are not profitable and they want to let the plant rot as you said. I agree, there needs to be a mix of fiber and wireless. The emphasis on wireless is because it is seen as being more profitable, however that is eroding quickly. Perhaps Google fiber and similar initiatives will spark some more activity around FTTH, FTTN.
- Aloha 11y agoI actually disagree that wireline services are not profitable, they are profitable, generate a very stable rate of return - but they are not generating the rate of return, and more importantly growth rates the market expects. Because of this, Verizon is trying to starve them to make its balance sheet look better - which in the short term works, but it will also hasten the demise of what is a somewhat lucrative revenue stream. FTTN Makes the most sense in dense and semi dense urban and suburban areas - FTTH/P makes more sense in very rural places, I'm seeing movement on FTTP by CenturyLink, Frontier seems very interested in expanding its existing FTTH footprint, but is not doing so yet.
- zw123456 11y agoThat's probably about right, the margins are just not what Wall Street demands these days.
- Aloha 11y agobecause its so capital intensive, I don't think there is anything you can do to make the rate of return better either. That's the trouble, its a good stable business, but no longer in vogue.