Lowell McAdam, Verizon's new CEO, recently conducted an
interesting and wide ranging interview with securities analyst
Andrew Decker of Guggenheim Securities. Outlining Verizon's
strategic direction to Wall investors, McAdam described Verizon's
belief that their wireless 4G LTE will continue to provide top line
growth and bottom line results. See the full transcript
He also described an interesting aspect of Verizon's future and
what that may mean to Verizon's rural customers. He said…
"But the vision that I have is we are going into the
copper plant areas and every place we have FiOS, we are going to
kill the copper. We are going to just take it out of service and we
are going to move those services onto FiOS. … And then in other
areas that are more rural and more sparsely populated, we have got
LTE built that will handle all of those services and so we are
going to cut the copper off there. We are going to do it over
There, he said it. He is not evaluating, studying or
contemplating his decision. He said "…we are going to cut the
copper off there. We are going to do it over wireless."
Is the Glass Half Full?
The direction Verizon is taking requires regulatory permission.
Verizon has succeeded in Florida, Virginia and Texas to pass some
form of deregulation, allowing Verizon to shed its carrier of last
resort obligations in whole or in part. Does this bode ill for
consumers or is it the leading edge of a strategy other carriers
will adopt? Is this an opportunity for rural LECs to adapt by
serving the unserved or will Verizon succeed by offering robust wireless
services that are actually better than its aging
copper facilities? Regardless of how you view the glass, the
economic and marketplace reality McAdam is describing drives a
valid financial strategy for a company like Verizon.
What are your opportunities?