Tuesday, March 18, 2003

Verizon to Accelerate DSL Rollout, Sees Eventual Migration from Copper to Fiber

Saying that he is encouraged by preliminary analysis of the FCC's broadband decision, Verizon vice chairman Lawrence T. Babbio said "if the FCC's final order as it relates to broadband is written the way it's been advertised that will encourage us to speed our deployment of all broadband technologies." Verizon now plans to accelerate its broadband rollout with the goal of making high-speed Internet services available to 10 million more homes and businesses in 2003. This represents nearly a 30% increase to the 36 million Verizon access lines now equipped for DSL and would make DSL available to 80% of all Verizon lines. CAPEX spending plans were not disclosed, however Babbio suggested spending would shift from traditional voice technologies to broadband. Depending on the state of the overall economy and outcome of specific state regulations, Verizon plans to deploy DSL equipment in more than 3,000 remote terminals that are connected to the Verizon network with fiber-optic cables. Verizon also expects to deploy DSL equipment in approximately 1,000 additional neighborhood central offices. Babbio also said Verizon is now planning for the eventual migration of its copper loop access network to fiber. The company is exploring ways to advance its broadband deployment in 2004, including deploying fiber into neighborhoods and bringing fiber to the premises of an initial set of customers. He also noted favorable early results in a trial of broadband wireless access service in Virginia and Maryland.
http://www.verizon.com

  • Immediately following last month's decision by the FCC, Verizon characterized it as “a recipe for continued disarray in the industry and more litigation.�? Several days later, Verizon CEO Ivan Seidenberg said that the company was “somewhere between confused, perplexed and very angry�? about the decision. He said that Verizon would challenge the ruling in court seeking a stay or a reversal of the new state-by-state policy. With regard to the broadband piece, Seidenberg said the FCC “appeared to be headed in the right direction�? but still managed to create greater regulatory confusion by ruling that state commissions should have a role in permitting ILECs to retire copper plant. See the full story at http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=6518

  • Prior to the ruling, Seidenberg had called on the FCC to adopt national standards that included the elimination of unbundling for high-speed, high-capacity data connections; removal of switching from the list of required unbundled elements; elimination of the requirement to provide business UNE-P; and a transition away from UNE-P in the residential market. See the full story at http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=6317

  • Read our full report on the FCC's decision at http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=6492.
  • Industry reactions to the new rules can be found at http://www.convergedigest.com/regulatory/regulatoryarticle.asp?ID=6493.