There, He Said It

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 here.

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 wireless."

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?

Written by Kevin Kutcher at 10:00