"We are allocating as much cash as possible into higher growth, less regulated opportunities," said Mark Wegleitner, Verizon's Chief Technology Officer, speaking at the Lehman Brothers' Fifth Annual T3 Conference in New York. Verizon is evolving in a unique way compared to its peers and competitors, he said, because of the company's belief that being a facilities-based carrier and controlling the network is ultimately the key method of ensuring truly differentiated services. Wegleitner believes that Verizon's scale makes it possible to built the network in a profitable way. Verizon is seeking convergence at the optical transport and the packet switching layers, said Wegleitner. Complementing this core capacity will be fiber-based broadband access.
Wegleitner outlined Verizon's four pronged network strategy: 1) deploy FTTP for broadband access
2) build metropolitan packet networks on the existing fiber base 3) interconnect metro areas with a national packet/optical backbone and 4) use a converged network for both existing and new services.
He reiterate the company's FTTP objectives for 2004, including plans to pass one million homes by the end of the year with at least 100 central offices equipped in nine states. Verizon expects substantial revenue coverage within 5 years. Video services will be carried to homes as a separate wavelength using WDM. In some cases, Verizon will use an aerial overlay topology in bringing FTTP to existing neighborhoods. It will also consider full-FTTP builds in other locations. Verizon expects the newer support systems for the rollout will lead to lower overall cost of operations, integrated voice and data ordering, real-time zero-touch provisioning, and easier-to-use customer interfaces.
Regarding its metro networking strategy; Verizon's data network architecture currently consists of both ATM, Frame Relay and IP. It is moving to an IP/MPLS packet layer as its next generation core architecture. Its goal is to provide for packet layer convergence for local communications, aggregating broadband access and delivering IP-VPNs and VoIP.
As for its national backbone strategy, Wegleitner said Verizon will pursue a facilities-based approach although it also leases capacity as needed in a "smart build". Two immediate applications for the network are to support Verizon's long distance and Enterprise Advance initiatives. Key technologies are DWDM rings and next-gen SONET equipment.
The final leg of the strategy is voice over packet. Verizon's long-term desire is to move to packet telephony because of its inherent statistical multiplexing benefit and decentralized control features. This also enables better unified messaging applications. He noted that Verizon began introducing packet switching into its network in 1999. In 2002, Verizon began installing ATM-based softswitches in lieu of traditional circuit tandems. In May 2003, it added the first IP-enabled softswitch to its LD network. Early next year, Verizon will introduce its first voice-over-the-Net offering, followed by further deployments of softswitches. These initially will be used for enterprise services but ultimately will come to replace existing Class 5 switches. Wegleitner said no one expects a "flash cut" over to VoIP and that interworking with the PSTN will be a key requirement for a long time.
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- In November, Verizon 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. Vice Chairman Lawrence Babbio said the RFP process resulted in prices lower than its expectations.
- More on the RBOCs' FTTP Plans: http://www.convergedigest.com/DSL/lastmilearticle.asp?ID=9051
