Sunday, November 16, 2003

Verizon Selects FTTP Vendors

Verizon has selected Advanced Fibre Communications (AFC) to provide the central office and premises optical electronics for its fiber-to-the-home project. Verizon has selected Sumitomo Electric Lightwave, Pirelli Communications Cables and Systems North America, and Fiber Optic Network Solutions (FONS) to provide the fiber-optic cabling and other outside plant equipment for the project. Verizon said it is continuing contract negotiations with several other passive element vendors. Babbio said the RFP process resulted in prices lower than its expectations.


In a presentation at the UBS global communications conference in New York, Verizon Vice Chairman and Domestic Telecom President Lawrence T. Babbio Jr. said the company would invest in FTTP next year without an increase in its historical capital spending levels. Babbio confirmed that Verizon's initial deployment plans involve passing about 1 million homes with FTTP in 2004, with the deployment pace potentially doubling in 2005. In the first half of 2004, Verizon expects to begin initial test deployments in at least two communities. By the end of the year, the company expects to deploy the new technology in over 100 central offices across nine states. Capital spending will be shifted from other areas to support the FTTP rollout. Within five years, Verizon expects to have FTTP available to 60% of its existing customer base.


Regarding the regulatory environment, Babbio also noted that Verizon expects the FCC to provide "assurances that we will not be forced to share our investment in this new technology with our competitors, as is the case with copper facilities today."http://www.verizon.com