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Verizon Communications Inc. Message Board

  • tivoinvestor tivoinvestor Sep 3, 2013 5:26 PM Flag

    Next Step: Sell wired division

    The company is obviously betting on the fact that the future is in wireless. Fios never provided the margin or profitability once promised. And now there are more competitors than ever. Web based solutions and Google Fiber are new entrants and established competition will continue to limit returns on wireline. It makes sense to sell the division that is weighed down with high legacy costs (labor) and physical plant upgrade and maintenance costs. In the the new and out with the old. I'm not sure who would want to buy the wireline division but I believe PT Barnum has a lead. The cash would really help the balance sheet and provide more flexibilty to grow the wireless division.

    Sentiment: Buy

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    • What makes you an expert ? I am recently retired OSP engineer from VZ and them wanting to sell off the unprofitable areas has been going on for at least a dozen years. But never sell off the wire centers where FIOS has already been deployed. They want to unload the small rural sparsely populated wire centers that are all old copper that needs constant maintenance. The same areas that will never see FIOS and many of them do not even offer DSL. Some years back VZ was trying to work a deal with Alltel for a large portion of the southern tier of NYS, but never any of the FIOS areas.

      Sentiment: Buy

    • Every cell tower or cite runs and needs a host of landlines fibr or 10 mb copper , every carrier and then from their more landlines run all the trunks together in every town , city, state .MCI back in the the day was wireless ,microwave company inc. VZ bought them when they were bleeding bad as MCI WORLDCOM , that company shifted from unreliable microwaves to teir fibr network which became todays internet. Wireless is complimentary device and is being rapidly commoditised ,Fios and fibr gigabit IP networks are are also big future drivers ,agree POTS line are limited ,One Verizon is being touted by the dear leader McAdams ,both networks,wouldnt be suprised to see a Fibr IP expansion,they certainly have the cash flow now.

    • Yes ive been saying all along they should get rid of Fios and Wireline, its outdated, no need for it spin off sell just get rid of it,, and become a wireless and business company ,,

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