Fiber is the sole route to digital transformation -- and competitor Altice's decision to focus on fiber-to-the-home only validates Verizon's long-time strategy, the telco's CFO said today.
Speaking during the UBS 45th Annual Global Media and Communications Conference, Verizon CFO Matt Ellis told investors that Altice's arrival in the northeastern United States did not alter his company's outlook or strategy. Altice created an immediate presence in the region when it acquired Cablevision two years ago.
Unlike most operators that use a mix of technologies -- such as fiber, VDSL and Gfast -- Altice is using a fiber-only strategy in Europe and now the US. Likewise, Verizon has steadily increased its fiber footprint, using a combination of fiber-optic cable and NG-PON2 to build its new infrastructure.
While this approach may take longer, it's the right strategy, Ellis said.
"Altice's plans for FTTH validates what we have been doing for over ten years and the value it brings and the things you can do with fiber you can't do with other technologies," he said.
Altice's Optimum brand sees "very heavy triple-play penetration," said Altice USA President Dexter Goei during the cableco's third-quarter earnings call in September.
"We're not seeing a significant amount of competitive pressure either from Verizon or from OTT providers in this region given the success of the bundling and the high penetration of bundling you're seeing across our footprint, but I would assume as well across the Verizon Fios footprint," he said.
But Verizon continues to build out fiber to support its entire spectrum of wired and wireless customers, said Ellis, during Verizon's third-quarter earnings call in October.
"We continue to deploy fiber and we will continue to do that as we head into 2018...," he said. "You should expect to see us continue to be deploying fiber around the country as we go forward to service both wireless but also customers across the rest of our businesses and getting into IoT applications as well."
Deutsche Telekom just signed an infrastructure project with the Gigabit Region Stuttgart, home to 174 municipalities and almost 3 million people, one of many partnerships the German operator has inked in its bid to grow revenue and business.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.
The MDU market continues to face fierce competition among service providers due to tech-savvy residents (i.e., millennials), demand from building owners and management companies, plus the favorable economics of bulk contracts. However, no MDUs are the same, so service providers must use multiple technologies and inconsistent deployment models, increasing operational complexity and rollout costs.
The MDU market itself is evolving as residents adopt smart-home technologies, generating rising demand for smart apartments with built-in connected thermostats, keyless entryways and doors, and video doorbells. This evolution presents both new challenges and opportunities. In other words, service providers must consider innovative service-delivery strategies to compete and win.
In this Broadband World News and ADTRAN webinar, Kurt Raaflaub, Head of Strategic Solutions Marketing, will highlight emerging MDU broadband Internet trends and challenges. In addition, Kurt will outline the next-generation service creation and delivery platform, built on open standards, that allows service providers to connect millions of underserved MDUs, enables creation of user-driven services, and reduces operational complexity and costs.
Plus, special guest, Alice Lawson, Broadband and Cable Program Manager for the City of Seattle, will discuss Seattle’s B4B-Build For Broadband initiative that addresses best practices in planning for MDU telecommunication infrastructure.