Verizon Considering The Expansion Of FiOS
On repeated occasions Verizon has made it clear that the FiOS situation is behind them. They are more than satisfied with the service they provide and they way in which they provide it, meaning future plans for expansion are not on the cards. Hang on a minute though – that’s with the exception of the fact that now it’s totally on the cards for them.
In 2013 the CEO of Verizon, Lowell McAdam said that they had no interest in expanding FOS, the same thought was repeated in 2014 by Fran Shammo, CFO of the company. Later on in 2014 that message carried through with a spokesperson informing the residents of New York state, who who were chomping at the bit for the service, “It’s a simple no. I hate to be blunt, but the answer is no.”
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Despite the fact that in 2010 Verizon refused expansion into Boston, this spring sees them whistling to a completely different tune. The first expansion that FiOS has seen in years was announced in April – the expansion was into Boston, following over 5 years of begging for the service. In need of coupon codes for products and services ? Let NGWAVE help you get great discounts
The expansion into Boston doesn’t simply reflect the introduction of a new service; instead it’s part of a long-range project that will see the removal of the previous “legacy” systems of using copper wire and replacing them with fiber to create an up-to-date IP based communications. The FCC has given their approval to this, however various consumer protections are in place (for example “the customer must be notified”). Some Verizon clients are not adapting as well as others, however it is ultimately a slow, yet unavoidable, change.
During a recent earning call it wasn’t just the matter of the “One Fiber” plan for Boston that was mentioned by McAdam, but also the possibility for expansion to other cities within the near future. Coming up tops would be the northeast corridor, especially bearing in mind that Verizon has the strongest presence in BosWash Megalopolis (unlike the majority of the copper networks in the country they have not sold already to Frontier) so expansion would be easier at this location.
With regard to expansion the larger part of Verizon, that being the wireless half, has also boasted recent growth. In fact there is a stronger connection here than you may initially think.
Today Verizon sent out a press release in which they boasted about the network investment they made in recent times. It noted that one simply has to look at the facts and that Verizon invested a further $5 billion in the improvement of its network during the first 6 months of the year, making it the highest amount among all wireless companies in terms of spending.
An increase in the average connection speed on the LTE network was also bragged about, with an explanation that this was due to the creation of small cell nodes which number into the thousands as well as distributed antenna systems. In areas of high density, such as conventions, these distributed systems give additional coverage. The small cells are of help when it comes to large crowds and are in fact a potentially crucial element to the wireless industry’s creation of 5G.
It’s at this point that the fiber expansion comes back into play. Fiber is required for the small-cells as well as the DAS systems to create a connection, otherwise all of those signals have no use. It will be imperative for Verizon to continue to expand the fiber network which creates the connection for the wireless network if they are to provide a faster and more reliable service.
That’s the long and short of it.
In the meantime it’s another straw on the camel’s back in the claim that Verizon continues to make – and which has already been proven wrong – their business would come crashing down if net neutrality was in play.