Verizon Plans Fiber-Optic Trial Run - Analyst Blog
05 4월 2013 - 12:10AM
Zacks
Verizon Communications
Inc. (VZ) is planning to build a pilot program to test new
ways to deploy fiber-optic cables in New York City. According to
reports, the company is planning to use techniques like micro
trenching and saw cutting to insert cable through sidewalk. These
techniques are expected to consume smaller space for cable
insertion and ultimately result in reduced cost compared to the
traditional methods of deploying cables.
Currently, Verizon is initiating a pilot project in collaboration
with New York City authorities. If the deployment is done
successfully, the company will carry out such network deployments
in the whole of New York, covering five boroughs by next year.
The company’s main aim is to expedite the deployment of fiber optic
service, replacing traditional copper lines so as to increase data
speed and curb network traffic. Currently, Verizon provides fiber
optic networking only for its FiOS TV and broadband services.
Through copper-to-fiber migration, the company intends to drive
FiOS revenue growth and maximize profitability.
Apart from improving network deployments, Verizon is taking several
other steps to improve its wireline service – FiOS – that competes
with AT&T, Inc.’s (T) U-Verse services and
Time Warner Cable (TWC). The company introduced
new FiOS pricing plans (set-top boxes and planned bundled changes)
that would accelerate consumer revenue growth for the next several
quarters. Verizon also collaborated with Starz
(STRZA) – a top-notch global media and entertainment company – to
launch STARZ PLAY and ENCORE PLAY. Overall, we believe these
combined efforts would lead to improved revenue, high operating
margins and greater share in the cable services market.
Verizon has a Zacks Rank #3 (Hold).
STARZ-LIB CAP-A (STRZA): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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