Thursday, May 14, 2009

Verizon's "Core Business" is Indeed Wireless

According to Tim Greene at Computer World, Verizon has unloaded much of its terrestrial broadband network lines. As for the reasons why, they should come as no surprise: Verizon is all about Wireless Broadband.

Greene commented that Verizon's decision to unload such a large amount of infrastructure--$8.6 Billion worth to be precise--is simple: these assets "don't align with its core businesses." In fact, the more notable news to me was learning that Verizon ever owned over $8 Billion in copper cable and fiber optics.

The buyer, Frontier Communications, sees value in the assets as part of their mission to bring broadband access to rural areas. Most of the network being sold serves rural areas across the U.S. While we applaud Frontier for their dedication to that service, I still have to shake my head wondering, "isn't wireless broadband a better way to serve rural areas?"

All in all, I'm convinced this is an excellent move for Verizon, increasing capital that can be applied to the more pertinent task of building their fixed wireless infrastructure. As for the rural access, we shall wait and see what Frontier makes of their new growth.

Labels: Broadband, Fixed Wireless Broadband, Rural Broadband, Rural Broadband Access, Verizon