Archive: January, 2009
More Services in More Places
Verizon in 2008 expanded Internet and TV services to more customers, boosted broadband speeds and availability, added more cities to the FiOS TV service area, provided more than 100 FiOS high-definition (HD) channels in every FiOS TV market, and introduced new, interactive TV features that now lead the television industry.
The bold initiative to build fiber-optic facilities right to customer premises is paying off, with more than 2.5 million FiOS Internet and 1.9 million FiOS TV customers connected as of year-end, each up about 1 million customers in 2008. During the year, Verizon also continued expansion of its DSL-based Internet service and increased the fastest download speed to 7.1 megabits per second (Mbps).
Verizon's revolutionary project to construct the all-fiber-optic FiOS network straight to homes, apartments and businesses exceeded the original year-end goal of 12 million homes passed, and the network can now serve 12.7 million homes and businesses.
"Throughout 2008, and especially in the final quarter, we waged a major assault on old-fashioned cable both by offering new services and by serving more customers," said Dan Mead, president of Verizon Telecom. "We leveraged not only our fiber network, but our High Speed Internet assets and our partnership with DIRECTV, and created the kinds of bundles and offers that appeal to customers and will grow our business.
"The combination of our great networks, products and the experience of the Verizon team will continue to be a winning formula as we move forward into 2009," he said.
The company also began to pursue multimedia content for its broadband customers by endorsing a new, network-efficient process for peer-to-peer file delivery, creating its own content delivery network (CDN), and giving content owners and CDNs direct access to the Verizon Internet backbone.
Verizon Closes on Alltel
If you want a powerhouse as your mobile phone provider, Verizon is well on its way. On January 9th, Verizon will complete the acquisition of Alltel, making it the largest cell phone provider in America.
Alltel was a competing provider, the fifth-largest carrier in the United States. They mirrored their strategy after that of Walmart, starting in rural areas then expanding to cities. By acquiring Alltel, Verizon is gaining many assets.
This comes with a price tag, however, as Verizon will pay $5.9 billion, and also gain $22.2 billion in Alltel’s debt. However, Verizon received commitments for financing amounting to $17 billion from eight different institutions. By obtaining 13 million extra subscribers, putting them at approximately 78 million, Verizon will be ahead of AT&T, the current leader.
The regulatory review took longer than expected, stretching into December, so Verizon Wireless was unable to seal the deal before 2008 ended. In order to acquire approval for the deal, when its assets overlap with Alltel’s network, Verizon will sell its assets.
With this acquisition there is a lot of talk about which jobs will be in danger, and whether or not Verizon will keep certain employees and positions. Currently, Alltel is based in Little Rock, Arkansas. Verizon is planning on locating a call center there, but it is uncertain how many of the better paying jobs there in the city will be kept. Most likely, a large number of them will be lost. Verizon is expected to give more information on jobs on the closing date.
President and Chief Executive of Verizon, Lowell McAdam addressed an audience in Little Rock approximately half a year ago, and he figured that it would take a long time to determine which positions would be kept or cut. He added that it would most likely take a year after the closing of Alltel.