Verizon: Gosh, We Just Can't Afford to Maintain Copper Networks Recently the New York Times ran a fairly standard article praising fiber to the home service, while lamenting the lack of overall fiber in the United States. Verizon Regulatory Affairs VP David Young has posted a rather odd blog response, taking the opportunity to pretend that people are somehow stopping the company from deploying more FiOS (even though they've put the brakes on deployment themselves). Verizon also insists that a company that made $5 billion in profit last quarter alone can't afford to keep DSL lines operational: quote: Unfortunately, there are some who for a variety of reasons are trying to put the brakes on fiber upgrades, and by extension, fiber deployment. They think that the old copper networks should be kept indefinitely. Needless to say, no existing telephone company will be able to make the investment necessary to build a new fiber network if it is forced to keep the old, redundant, and costly copper network running, too. But what if the company that operates those copper networks has received billions upon billions of subsidies over an entire generation to build and maintain those networks? Verizon for obvious reasons doesn't discuss that. In Pennsylvania, Verizon received billions in tax breaks and subsidies to deploy 45 Mbps-capable broadband services to the entire state that were never deployed, and now the company's But what if the company that operates those copper networks has received billions upon billions of subsidies over an entire generation to build and maintain those networks? Verizon for obvious reasons doesn't discuss that. In Pennsylvania, Verizon received billions in tax breaks and subsidies to deploy 45 Mbps-capable broadband services to the entire state that were never deployed, and now the company's backing away from similar obligations in New Jersey I don't think anybody has ever bothered to audit how many billions in taxpayer subsidies and tax cuts Verizon has received from federal and state governments over the years and done a direct comparison to actual build and maintenance costs, but I'm fairly certain Verizon and Mr. Young wouldn't much like the publicized results of such a study. As for copper, Verizon's busy hanging up on millions of DSL users they don't want to upgrade. Like AT&T, they're going state by state working to gut consumer protections on these lines, while raising rates on DSL users in the hopes they'll either leave and go to cable, or be forced to sign up for more expensive wireless. Verizon's fiber expansion is all but frozen -- the name of game now is ditching the remaining unwanted copper customers Verizon simply refuses to upgrade. In fact, Verizon quote: Policymakers at all levels of government must recognize that the upgrade from copper to fiber provides significant benefits for consumers and for the communities where this takes place. They should focus on the tremendous advantages that come from replacing limited capacity copper networks with future-proof fiber optic networks. There will always be some people who don’t want to see any change and will ask policymakers to block it. Except again, absolutely nobody is blocking Verizon from upgrading networks from DSL to fiber. What's at issue is Verizon's decision to sever copper DSL and POTS in areas with few if any additional options, then telling them that wireless (whether or not they can actually get signal) is simply good enough. The FCC has recently stepped in to at least superficially ensure these users In fact, Verizon just got their wrist slapped by the New York PSC for refusing to repair Sandy victims' DSL lines, shoving those users onto wireless-based solutions that did a quarter as much as the DSL lines users lost (for good measure Verizon then tried to hide details about it ). Yet to hear Verizon tell it, the issue is that "policymakers" are somehow preventing Verizon from providing fiber upgrades:Except again, absolutelyis blocking Verizon from upgrading networks from DSL to fiber. What's at issue is Verizon's decision to sever copper DSL and POTS in areas with few if any additional options, then telling them that wireless (whether or not they can actually get signal) is simply good enough. The FCC has recently stepped in to at least superficially ensure these users don't get screwed when they lose a connectivity option , but that's apparently enough to generate some misleading whining from Verizon.







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Most recommended from 118 comments

viperlmw

Premium Member

join:2005-01-25 7 recommendations viperlmw Premium Member Copper is still profitable A close analysis of Verizon's financials reveal that copper is still quite profitable. Hell, even Class 5 switching is still profitable. There are few, if any upgrades to the core copper network happening, if anything, it's last mile stuff. My point is, all this infrastructure is ALREADY PAID FOR! Also, DSL equipment is cheap and getting cheaper, with more and more bandwidth being pushed over these ALREADY PAID FOR copper lines. Compared to new builds, maintenance is cheap and easy, both in last mile copper networks and switching. These companies try to obfuscate this fact by applying various types of revenue generated by copper delivery into different revenue streams. It's an accounting gimmick intended to bullshit people into believing these networks are loosing money, but this is just not supported by the financials. Even with regulation, they make a ton of money. In their eyes, the problem is that they can't make a 10 tons of money. As a friend of mine puts it, "These switches and networks are just puking money onto the floor!"



The other problem is that the reliability of the existing network is being completely ignored. Communications is a vital infrastructure for the nation, and relegating it to 'laissez-faire' economics is a critical error.

Zenit

The system is the solution

Premium Member

join:2012-05-07

Purcellville, VA 5 recommendations Zenit Premium Member Break apart VZ Break it apart - split VZ Wireless from VZ Wireline.



VZ Wireline -> Bell Atlantic II



Without the wireless cash butter cow, and Mr. McWireless as the CEO (-hand rubbing intensifies-) BAII would have to invest in infrastructure, or die.



This problem with the copper was brought on by VZ itself. Go outside and look at some VZ copper if you live in such an area, its in shit condition. Covers missing on peds, leaking splice cases "repaired" long term with trash bags and electrical tape, equipment dating back to the 60s/70s Ma Bell...



They invest NOTHING in it as is, beyond keeping it superficially working for dial tone to make PUCs happy. A tactic they have used is to move important circuits to the middle pairs of a cable, as the outer pairs go bad.



So VZ is no no position to whine. The last time they spent anything on the copper network was with the roll out of ADSL2 in the COs. Even "AT&T" and CenturyDink have done more with the copper!



They halted the FiOS build-out as the returns were not as massive as plopping a LTE tower and shoving HomeFusion down everyone's throats.



I hope the VZ apologists realize that their grand plan is to transfer everyone not on fiber to 4G LTE and charge the hell out of them. Its not OK that this is happening in a supposedly first-world technologically advanced country.



On a side note, even in areas where VZ has signed a contract, and has been given little regulatory friction, they still refuse to build out FIOS. Our town HAS to have it by 2015 or the County is going to slap their wrists with heavy fines until the job is done. I dont see how they are going to FIOSify this town in 1 year, there is a lot of digging to do!



btw they have millions of dollars of fiber equipment in the Central Office, but its not being used. Comcast thanks them for handing them a monopoly.



I am fine if they cut the copper, but put fiber in its place.

Gilitar

join:2012-02-01

Mobile, AL 4 recommendations Gilitar Member Give me a break The government needs to make it clear that AT&T and Verizon can kill their copper network AFTER fiber is made available. Nobody is stopping these clowns from deploying fiber. The government needs to light a fire underneath AT&T and Verizon. Our broadband providers are too big and lazy! majortom1029

join:2006-10-19

Medford, NY 3 recommendations majortom1029 Member wow Verizon and other phone providers are handing cable companies monopolies. The government really should create its own fiber network that it leases out. So that other companies can come along.



Verizon does away with dsl and that leaves cable the only phone,cable or internet provider in a lot of areas.