Verizon Sells Off Wireline Operations, Blames Net Neutrality Plans
itwbennett (1594911) writes "Verizon Communications will sell its local wireline operations in California, Florida and Texas for $10.5 billion, citing uncertainty around federal Internet regulation as one reason for the move, although Verizon executives said the sale has been in the works for several years. It's no secret that local wireline phone service has been a shrinking industry, and Verizon and other carriers see mobile as their greatest growth opportunity. Verizon Chairman and CEO Lowell McAdam cited the Federal Communications Commission's upcoming net neutrality proposal as another potential threat to the growth of wired services. 'Washington should be very thoughtful how they go forward here,' he said. 'This uncertainty is not good for investment, and it's not good for jobs here in America.'"
That's just an excuse.
... for your fuckups and lack of revenues?
Gee, here's an idea .. about you stop with the crappy customer service .. so you know, you actually can *acquire* customers for the long term.
The test run was the former SNET region. ( Last year )
Trust me when I say other regions are soon to follow. Especially in the regions where they have not ( and have no desire to ) deploy their U-Verse systems.
Why can't they have legal monopolies and abuse their position to compete with Netflix via throttling and charge $100 for a 2 Meg pipe and still be a broadband provider which means no taxes. Wahaha EVIL socialist bastards.
http://saveie6.com/
Our huge profit margins are not maximized under the current plans, and it means we cannot use our government enforced cartels to force other companies to pay us again for services the end users are already paying for.
Therefore we will 'protest' by selling off an area of the business we have been planning to sell of for normal commercial reasons for quite some time, but using our highly paid group of lobbyists and spin doctors, we will make you think this is bad for you, and therefore change the playing field to make us even more profitable, at your expense.
The sad thing is some people will actually fall for this rubbish.
And the sadder thing is it wont matter if you dont fall for it, because 'campaign contributions' mean they get whatever laws they desire anyway, given enough time and no one peaking behind the curtain.
Welcome to the new world.
Ever notice how "uncertainty" has come to mean "something we don't want to happen"? Not just net neutrality, it's everywhere. It's like, everything we support will last forever, everything we oppose is uncertain because someday we'll manage rid of it.
if you thought the 100k IBM layed off was impressive, just watch how we, a company too big to fail, shit all over the peasantry if you dont get back to kissing our ass.
Good people go to bed earlier.
Funny... Verizon outsourcing jobs is good for america but this isn't?
"This was all in an effort to cut costs and make larger profits. And profits they’ve made. During the same period of laying off thousands of workers, Verizon made more than $19.7 billion in profits and received a $758 billion federal tax refund."
http://www.goodjobsnow.org/201...
Verizon sucks up tax breaks and rebates for building out fios and then tosses it usually to frontier that just barely maintains it. This is how they operate, they hardly ever keep landlines once they are done building in the area and frontier never adds to the network. It is a scam they have ran since they started installing fios as keeping and running the actual network is a not as profitable.
You can pump a LOT more data thru a wire/fibre than wireless.
I they can't do the last mile, lets cover cites with FREE wifi mesh networks on light/utility poles.
And not let *%^(*^(&*^ companies make money on the deal.
STFU!!!!
This is actually quite silly. Plans to sell 11 figures worth of business assets ($10,000,000,000) don't happen overnight. This has obviously been years in the making.
Your spam smells like curry.
what's bad for their bottom line is bad for America.
Who was it that created the environment allowing these monopolies market strangleholds? Government, at all levels, federal, state and local. Particularly guilty are the small-minded scum inhabiting most city governments. They abused their positions by selling sweetheart monopolies to [fill in blank], ostensibly for municipal revenue, but really to buy votes and influence. I am definitely not saying that Verizon, or any other company, has clean hands. But there is lots of blame to go around. A would also not bet on "Net Neutrality" being the path to a utopian broadband future.
"Computers are useless. They can only give you answers."
-- Pablo Picasso
The pick play near the end of the Super Bowl caused some guy to die.
Deals like this don't happen overnight, they can't even get an agreement done within several months.
Verizon Communications will sell its local wireline operations in California, Florida and Texas for $10.5 billion, citing uncertainty around federal Internet regulation as one reason for the move
Fine, if Verizon has a problem with Net Nutrality, perhaps they should not be in the Internet business anyway.
I think their best be is to go the HP route and switch to ink-jet printer ink.
If you want news from today, you have to come back tomorrow.
This is not new for Verizon at all - they have been shedding their landline and FiOS business for years. Back in 2007 they abandoned Maine, New Hampshire and Vermont, selling off the business to FairPoint Communications, a tiny North Carolina company that struggled for years to overcome billing system issues. FairPoint announced then that they would not be expanding the fiber Internet service (FiOS TV never got started here) and the service has been static since then. (On the positive side, my bill hasn't increased since 2007!)
Even in Massachusetts, where Verizon still operates FiOS TV, they announced a couple of years back that they would not expand service to more areas. This tripe about Net Neutrality is just a convenient smokescreen for what they've been planning all along.
showing their true colors.
..."make it blue, no, make it green, no, make it plaid on Tuesdays and polka-dot on Thursdays..."
Good for jobs, just not good for efficiency.
Table-ized A.I.
So that I can get decent broadband. Verizon has done nothing here, I want real DSL.
Our customers expect to get screwed over, and this legislation would put a stop to that for wired service. To ensure consistent customer experience, we must unceremoniously dump our wireline customers.
Don't waste your vote! Vote for whoever you want, unless you live in a swing state it won't matter anyways
I'd prefer to completely separate FiOS from Verizon Wireless. The fact that they halted fiber rollouts to protect their wireless profits is a bad omen.
Maybe dedicated landline companies will concentrate on laying fiber.
None of the large telcos want to do copper line POTS anymore. It doesn't generate enough revenue, no one seems to actually use it, and the cost for upkeep and maintenance can be prohibitive. I doubt subsidies for maintaining the copper plant infrastructure will be around for much longer, to be honest. This is just Verizon fleeing a ship that has already sunk, and been under water for some time. The only thing that old copper plant is really good for anymore is rural telecom and rural DSL services-- which don't even qualify as "broadband" anymore according to the new FCC guidelines.
As we've noted, Verizon's been looking to offload its fixed-line assets for years, since the company clearly finds wireless service (and caps and overages) a far-more profitable venture. As such they've spent the last few years actually raising rates and neglecting unwanted customers in the hopes they'll leave to wireless, or leave to companies like Comcast (where they'll then be pitched...you guessed it...Verizon Wireless services as part of a co-marketing arrangement). After massive sales to Frontier and Fairpoint in years past, Verizon this week convinced Frontier to buy all of the company's DSL and FiOS customers in Florida, Texas and California. Amusingly (or not), Verizon is trying to spin the latest deal to pretend they were forced down this path because of net neutrality: ...
'Washington should be very thoughtful how they go forward here,' he said. 'This uncertainty is not good for investment, and it's not good for jobs here in America.'" It's SO nice to realize that they have their customers' best interests in mind...
I know, I know -- they have to make a profit. But it would be nice if someone would realize that net neutrality is about fairness to the consumer, not about maximizing corporate profits.
First the Good, Yeah I won't have to deal with their fucked up customer service anymore. Here that Verizon? You suck donkey balls!
The baby bells became too big and with too much consolidation. If they want to take their ball and go home crying fine. Maybe I can now buy my set top boxes because your network is built out now and being sold. I'm tired of paying fucking fees just because "you're building your network out" It's been over 5 years now, let me buy the box or get Tivo without it costing me an arm and a leg.
The Bad, I don't know who this other company is or how it treats its customers but I'll find out. I also can assume that they'll jack up the rates to pay the $10 Billion it'll cost them to buy this infrastructure from VZ. If they don't work out I can always go to TW/Comcast...Oh shit I'm screwed.
Harrison's Postulate - "For every action there is an equal and opposite criticism"
Because pissing away half of the proceeds of the sale on a stock buyback scheme is a long term revenue generating investment.
Crap, I'm moving to Hudson, NH and my two wired choices are FairPoint or Comcast. Should I really choose Comcast over FairPoint (I only care about Internet, not phone or TV)? FairPoint doesn't have any prices listed anywhere on their website. I really hate businesses like that.
No. Go with Fairpoint and avoid Comcast.
I live in NH (about 3 towns over from Hudson) and have used both. While Fairpoint is annoying, it's manageable and they don't fuck up too badly or very often. If you can manage your own computer configuration you can generally keep them at a distance and just reboot your modem once or twice a week.
Comcast is completely and totally interested in what you do, how you do it, and whether it violates their TOS. They will silently do lots of shit to prevent you from doing things, at random intervals. Also, Comcast oversells their bandwidth on what is effectively a shared line, so you won't ever get those "blazingly fast" XFinity speeds they advertize.
Comcast is "not a lot of benefit" for "whole lot of hassle".
Go with FairPoint.
'This uncertainty is not good for investment, and it's not good for jobs here in America.'
'Overpriced unreliable internet is not good for investment, and it's not good for jobs here in America'
10.5 Billion is a lot of money.
Maybe they suspect that Google and Space-X will launch new satellite technology that will make these wired lines obsolete.
Greed is the root of all evil.
The FCC is trying to create an environment of certain well defined rules, but you, Verizon, keeps taking them to court. If you want certainity in federal regulation, stop suing the FCC.
"If the law says we can't be dicks, then we'll sell the business off."
internet freedom + Job security => ObFranklin
The service is bad because most of their IT support is offshored. So much for saving American jobs.
-- I ignore anonymous replies to my comments and postings.
What's the matter? Can't extort? Aw, poor thing.
Please leave Verizon, tomorrow.
https://www.youtube.com/c/BrendaEM
Google should just buy Frontier and get access to all that fiber. Change out the hardware on the ends and they have instant Google Fiber.
Peter predicted that you would "deliberately forget" creation 2000 years ago...
This will result in increased competition. What's the downside exactly?
You see? You see? Your stupid minds! Stupid! Stupid!
Verizon has spun off rural copper line markets before. California and Texas have lots of rural residents. Also, look at Verizon's LTE map. I bet that LTE is cheaper than DSL, below a certain population density. I am curious as to what the population density is. That does not take into account a properly designed LTE pricing plan.
Comment removed based on user account deletion
This spinning off seems counter to the arguments that telecom is consolidating, to the raise prices, and profit handsomely. Verizon could easily take out low interest loans, to finance more construction, if it was profitable enough. Maybe DSL lines in America cost more to operate than everyone thinks they do. Maybe Netflix, and Youtube bandwidth costs a lot of money.
Hey Verizon: Don't let the door smack you in the butt on the way out! Good Luck in your future endeavors! Thanks for all your input. Remember to clean out your desk and put the contents in the banker box. Security will ensure that company property doesn't accidentally go out the door with you. They will help you pack. Better yet, they will help you see your way to the exit door (even help you through it), and we will mail your personal belongings to your last mailing address. I'm absolutely certain market forces will step up and replace Veriwhozitz with a company that respects customer wishes, offers better prices, and isn't as dickish to federal regulators. In short, a company that has a better customer focus and hasn't sworn complete fealty to shareholder dividends and nothing else. We will enjoy watching Google or someone else snap up the wireline business. Lenovo enjoyed snapping up IBM's PC business, then later their Supercomputer business. Hitachi loved snapping up IBM's disk drive business. Hitachi is doing very well. Lenovo is doing very well. IBM employees that have years of experience are finding new opportunities, just like Verizon employees. Once again Verizon, don't let the door smack you in the butt on the way out.
That uncertainty is crippling. Finally enshrine Net Neutrality in laws and be done with it!
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
There is a lot more bandwidth in a wire than there is in radio, which is very limited.
Verizon was trying to unload thus business for a long time. The buyer may have been willing to bid more but used this to lower the price. Verizon is angry because they got screwed and are crying foul. Buyer laughing because they got great assets cheaper. Investment still going to happen, and likely even more investment, because the buyer is less leveraged than he would have otherwise been.
-picture of smirking cowboy-
dont let the door hit you on the way out.
Companies exist to make profits. If they don't think they can make a profit, they quit what they're doing. Little shits around here act pretty much like the FCC and automatically assume that the capital and expertise to build a network just comes from nowhere. Shouldn't be too surprising to anyone that the FCC's parent company is hopelessly in debt.
Verizon raped it's customer base pretty badly on the wireline side. And I do mean raped. You see back when they were all Ma Bell and a regulated monopoly partof the revenue had to be put back into upgrading OSP. Except once the regulatory clamps were released - they stopped doing that. In fact that is common among telecom, electric and natural gas providers who got deregulated too.
Public utilities should NEVER be unregulated.
So Verizon is selling off it's wirelines because of the 5 people who still use dialup?
Aside from the obvious lie about why they are trying to get rid of something they've been wanting to get rid of for a long time, they really throw in a clinker....
The "Job creator" angle. Never worked, never will. It's like having three dogs, and you give one a dog treat. You think he's going to share any of it with the other two?
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
They don't want Net Neutrality, so anything and everything bad that happens is going to be down to Net Neutrality.
Trouble in the Ukraine escalates into WW3? Net Neutrality would be to blame. A dinosaur killer asteroid on collision course with Earth? All cause by market instabilities due to Net Neutrality. Osama Bin Laden returns from the dead and starts making more Dr Evil broadcasts? Net Neutrality. That's what you get..
In fact, if the Large Haddock Collider was to collide too many Haddocks at once and cause a singularity that went on to devour the planet, it's a fair bet that the last man alive would be a Verizon marketroid who would survive just long enough to launch a deep space probe that broadcast "it's all the fault of Net Neutrality"
Don't let THEM immanentize the Eschaton!
McAdam's comment is remarkably similar to the infamous line from another CEO a Charles Wilson, the head of General Motors in the 50's. Wilson's line was "What
s good for GM is good for the country" (not a literal quote but the gist of his comments). Both men identified the success of their own companies with the success of the country (not to mention their own individual wealth). This is simply corporate ego-mania.
In a similar vein, media companies often claim that the internet will destroy the recording and movie industries. Tell that to Beyonce or Tom Cruise.
Verizon and the other big boys, including Comcast, have things covered whichever way "net neutrality" goes. I can see how Verizon would want to maintain a gratuitous negotiating position here, but the sale was planned already.
All of you who are falling for the commissoner's pandering about "net neutrality", btw, be very, very careful what you wish for. Looks like a huge Trojan horse to me.
Now lets blame something we don't like.
'Washington should be very thoughtful how they go forward here,' he said. 'This uncertainty is not good for investment, and it's not good for jobs here in America.'"
Why not? Uncertainty drives change, and uncertainty at this point was created _by Verizon._ Granted, something had to change, because what the big ISPs have been doing is abusive at best.
Besides, it was Verizon that started this mess by trying to change the rules for its own benefit. Complaining now is just sour grapes. Enjoy your new Title II status.
The higher the technology, the sharper that two-edged sword.
Lenovo is doing very well. IBM employees that have years of experience are finding new opportunities
Where both employees and customers are second-class citizens if in the US.
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
How can the shareholders possibly be happy with this guy talking trash about the asset they are trying to sell?
The fact that Net Neutrality could drive Verizon out of any business is the best argument I've ever heard for Net Neutrality.
Title II? More like "entitled to".
All Verizon is telling me is that there should be no distinction made between delivery methods in regulating Internet access as a utility. Internet service is Internet service regardless of how you choose to deliver it to your customers.
" the danger of regulation has been around for a long time" Since when? Give me regulation on everything. Loss of jobs is a load and you know it. Municipalities will build networks and there lies the jobs you say will 'disappear'. And Verizon knows that too. Deregulation? Look what it did to the electricity traders (Enron) 2003? Price went up 300% and they were caught holding of production until the price spiked every morning. Oh the poor things they lost their jobs right? Then those same exact 'traders' went over to JP Morgan and ran the price of petroleum from $40 to $140 in LESS THAN 1 YEAR! All the while people saying "what can we do?" Their answer was "buy oil" The assholes. Watch Frontline on you tube about energy traders you will be reminded. Now we been drained for over a decade and they are starting the cycle all over again. The 1% can eat it raw... Do you know how much of a drain it was on the lower 99% of us? My driving habits changed, I walk more and want that lifestyle now. I say regulate the bastards if that's what it takes and it will because greed knows no bounds. Just watch the rise of big oil prices happen again and get PISSED and vote FOR regulation. And be NOT afraid citizen.
Shame if something should happen to it...'
'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
The Federal Communications Commission's upcoming net neutrality proposal announced a huge win for consumers!
Monopoly provider and frequent target of customer complaints, Verizon has exited the landline ISP business. The FCC is grateful to have contributed in any way, no matter how small, to this outcome.
In other positive news, racist owners of NFL teams exit the NFL. Domestic hospitals announce that "we've got our mojo working and don't fear Ebola any more". Finally, 600 internet scam artists from Nigeria and pretending to be a Prince/Judge/High Official have been arrested. Their e-mail addresses have been published and the world is invited to tell them exactly what we think of them!