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Verizon/AOL: Bypassing Title II with New Internal Infrastructure?

May, 2015

“The FCC’s chairman “said that he doesn’t see a role for the FCC in reviewing Verizon’s...recent proposed acquisition of AOL....’ I don’t think AOL has any [FCC-issued] licenses, so it would not trigger anything in that regard...,’” according to Telecommunications Reports. We at fibeReality believe that the fundamental unfairness of an Internet service provider being treated as a utility is at the heart of the AOL acquisition and we find the various other explanations that have been given in the market to be unpersuasive. First of all, the idea that Verizon would buy an antique as an initial step to competing directly against Google and Facebook seems absurd – Verizon craves full control of its networks currently enjoyed by these behemoth content providers. It has been over 30 years after the Ma Bell divestiture, and in a way, Verizon is being forced to go back to square one. The carrier ...

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Calix’s CEO Still at Top of His Game

February, 2016

Over the last 15 years or so, a lot of great executive talent has left the telecom/datacom optical space either because they made a killing during the bubble, it became time for them to retire, or perhaps they had the good sense to get out of an industry in which it can be extremely difficult to make money. One notable exception is the CEO of Calix, Carl Russo, who rather quietly has continued to use his exceptional skills in a fairly successful way to execute on a very focused business strategy in the space. While like any leader, he has his share of imperfections, Calix has been a company that reflects the best characteristics of the man himself, a solid identification with integrity and credibility, often sorely lacking in our business. When Cisco Systems bought Cerent at an incredibly high price, the one aspect that had to undoubtedly impress John Chambers the most was the personalit ...

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If Verizon Has Vague Rationale, Think FCC

September, 2016

For Verizon, there has been the matter of a tremendous buildout of Fiber-to-the-Home (FTTH) infrastructure in the past, which was clearly cost prohibitive, or more recently, supposedly picking up this activity with solutions that do not make sense technically. There have also been the head-scratchers on the purchases of both AOL and Yahoo, the former we addressed over a year earlier. They all have one aspect in common. They are either a means of finding additional ways of obscurely taking fuller advantage of FCC rulings that are favorable to the service provider or of finding an outlet of escape from those regulations unfavorable to the company. During the last decade, Verizon appeared to be justifiably criticized by analysts on the Street and others for its massive construction of FTTH, particularly at the beginning of the process. The economics were not justifiable and there were hurdl ...

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Intel Renews Hyperscale Optic Machination

October, 2018

According to fibeReality’s newest intelligence, we have never been more persuaded that Intel is selling optical components to hyperscale data center operators below cost, while the vendor has very little confidence it can achieve profitability, as a result of sufficient volume. Ever since the supplier had started offering quantity discounts to the space with PSM4 devices (and then later with CWDM4 hardware), we have believed that it has played a major role in bombing pricing, which in due course, led to the devastation of the optics ecosystem. We have also received information that even when Intel was running its Optical Platform Division, before divesting those assets last decade, that it had a clear inclination to treat these sales no better than it would loss leaders. For example, we understand there was irreparable damage to the 40G SFP market, when Intel aggressively undercut the pr ...

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Verizon Wireless: 5G Home Subterfuge

October, 2018

In some ways, Verizon has a worse credibility situation in the short term with its current emphasis on residential applications for 5G, than what happened with FiOS last decade. At least with the latter, it was able to relatively quickly project homes passed with fiber in advance going in lots of metropolitan areas, rather than the next-generation wireless solution becoming live to only a few neighborhoods in each of the four large cities announced. With FiOS, Verizon could argue at a minimum, the potential for unlimited capacity as well as definite, lower operational costs. With 5G Home, not only are the questions concerning a return on investment worse, given much costlier infrastructure spending, but Verizon does not appear to be charging rates commensurate with a truly premium service, while also bending over backwards with perks. Also, Verizon obviously has no plans to stop making m ...

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