Verizon Invests in Content Developers
During a recent talk with Charlie Rose, Verizon CEO Ivan Seidenberg listed content developers as a rationale for Verizon’s aggressive last mile strategy. In the interview, Mr. Seidenberg suggests that delivering fiber speed all the way to the home should yield much as of yet undiscovered value, including new opportunities for content developers, as opposed to the AT&T fiber strategy which is cheaper to implement but will not run that last mile and as a result deliver less bandwidth.
Investors in VZ may be a little nervous over such a large cap ex bet, but this week’s release of Verizons first quarter earnings might help ease at least some of that concern. Highlights like revenues up 25 percent from first quarter 2005 and low churn can do that.
Not sure that is enough performance to totally quiet the CEO compensation backlash that is brewing and time will tell who made the correct call, but for now I’m giving Verizon a fresh look. From their recent pact with Adobe, to their mobile platform deal in Europe with Danger, to their iptv rollouts across the country, these guys seem to care about content developers.
On a related note, if you’ve ever wondered about the actual impact on a neighborhood that comes about from laying new fiber, Dan Bricklin has documented the experience of what happened when FIOS came to his neighborhood.
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