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Study says Verizon is focusing on fiber-to-the-business deployment.

According to a joint report recently released by BIA Financial Network and Telecom Pragmatics, Verizon's access strategy is not based on delivering fiber to residential customers, but rather it is centered on the deployment of high-speed bandwidth links to as many large enterprise customers as possible.

Just as in the old Ma Bell days when the higher margins from long-distance revenues subsidized the high costs of local service. Verizon appears to be counting on high profitability from FTTB to make up for expected shortfalls with FTTH installations. The vast majority of the RBOC's installations of fiber within its footprint are along the Interstate-95 highway corridor," said the report's lead author Sam Greenholtz. cofounder of Telecom Pragmatics. "Most of the large businesses in its territory tend to be located within 20 miles of either side of I-95."

"Verizon's Charging Forward with FTTP: Will Credit Markets and Regulators Get in Its Way" is based on in-depth interviews with service providers, including Verizon, SBC, BellSouth and others. In addition to Greenholtz, who spent 28 years at Verizon and its predecessor companies, contributors include John Spencer, who worked for BellSouth for nearly 30 years, veteran industry analyst Mark Lutkowitz from Telecom Pragmatics, and BIA financial analyst David Gross.

"Industry observers need to realize that while there will continue to be substantial deployment of FTTH, especially in communities located near large businesses, Verizon's primary concern is in becoming the leading managed service provider to the enterprise space in the nation," said Gross. "Providing services to residential subscribers is truly a secondary concern."

Verizon's Charging Forward with FTTP" is available for purchase. For more information, call 800.331.5086oremail reports@bia.com. Additional material on this report can be found at, www.bia.com/TelecomReports.htm.
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Title Annotation:NEWSLINE: The Latest Industry Developments
Comment:Study says Verizon is focusing on fiber-to-the-business deployment.(NEWSLINE: The Latest Industry Developments)
Publication:Underground Construction
Geographic Code:1USA
Date:Apr 1, 2006
Words:290
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