Tag Archives: verizon

Verizon buys enough fiber to reach Mars, sorta

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Make it quick.

Verizon is pumping up the volume about its three year deal with Corning to spend $1.05 billion on “fiber optic cable and associated hardware”. It even got a congratulatory (and self-congratulatory) press release from Federal Communications Commission chairman Ajit Pai. As it should It’s a big commitment and will add a considerable amount of potential bandwidth to the U.S. supply.

Verizon also claims that it will be buying “up to” 20 million kilometers (12.4 million miles, it helpfully adds) of “optical fiber” each year, from 2018 through 2020. That’s enough optical fiber to wrap around the Earth almost 1,500 times. It could circle the Sun almost 100 times. It’s even enough optical fiber to build a middle mile line from Earth to Mars. Until it snaps off a few minutes after closest approach, anyway.

It is truly a big deal, but not as big a deal as a quick glance might lead you to believe. Verizon is careful to distinguish between “optical fiber”, which is a strand of glass, and “fiber optic cable”, which is a bundle of optical fibers. Cables come in many sizes, but 432-strands are typical for mobile carriers these days. Cables with 864 strands are not unheard of, and 288 is probably as small as you’re likely to see from them (granted, there are unlikely builds out there). But let’s say 432 strands.

That implies a build of 29,000 miles a year, or 87,000 miles total. At a total cost of $1.05 billion and allowing a bit for “associated hardware”, that comes to somewhere in the neighborhood of $2 a foot, which is in the volume discount ballpark for 432-strand cable. I’m sure it’s more complicated than that, but in round numbers it looks like Verizon is planning to build something like 80,000 to 100,000 miles of fiber plant over the next three years.

That’s a lot of backhaul, and a lot of cell sites.

Verizon fires up mid-tier IoT network

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Making good on a promise, Verizon says it is rolling out wireless Internet of things (IoT) service nationally. During the CTIA show in Las Vegas last year, a Verizon representative said that the LTE M1 standard would be deployed throughout its U.S. network by April. Verizon beat that deadline by a day, saying in a press release that as of yesterday, it was launching…

The first nationwide commercial 4G LTE Category M1 (or Cat M1) network, which spans 2.4 million square miles. This is the first and only Cat M1 network providing scale, coverage and security for customers seeking wireless access solutions for IoT. Verizon’s Cat M1 network is built on a virtualized cloud environment which enables rapid and agile IoT solution deployment and nationwide scaling aimed at increasing IoT adoption for developers and businesses with new and more economical IoT data plans.

Service pricing starts at $2 for 200 KB per month, and scales up to $80 for 10 GB. IoT – also known as machine-to-machine or M2M – applications can be very parsimonious with bandwidth, so the low end package could be enough to support basic functionality for, say, an environmental monitor or on/off control for remote devices such as security lights or a heating/cooling system.

LTE M1 technology is a cut down version of regular LTE. The next rev will be the LTE NB1 standard – NB as in narrow band – which will be aimed at the ultra low power, ultra low bandwidth end of the market that’s currently targeted by the LoRa and Sigfox systems.

M1 equipment needs to be plugged in or recharged relatively frequently, ultra low power/bandwidth devices are designed to run off a small battery for a year or more. Both standards will find uses. For example, it might make perfect sense to pay $2 a month to control an electric irrigation pump with an always-available M1 connection, but the thousand or so soil and temperature sensors scattered around a field that support that pump can get by with much cheaper occasional 12 byte bursts, the kind of payloads that the ultra-low systems can deliver.

NB1 deployments could begin this year, but are more likely to go mainstream in 2018.

Verizon threatens to end NYC FiOS service over lawsuit

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New York City is suing Verizon for failing to build out fiber to the home service to all residences as promised and Verizon might retaliate by yanking out television service citywide. And stroppy landlords are making it a three-cornered fight.

Like any legal dispute that’s measured in billions of dollars, it’s a complicated affair. But one of the central issues is Verizon’s problems with getting access to apartment buildings and condos – multi-dwelling units (MDUs).

Landlords have not been particularly cooperative. Whether it’s because they have profitable arrangements with other video service providers or they think they can get something out of Verizon or they’re simply being obstinate, they’re preventing a million households from getting FiOS service. At least as Verizon tells it.

As the city sees it, though, Verizon is playing a game. If one landlord blocks access to his property and there are apartment buildings behind it, none of them get FiOS upgrades (h/t to Ars Techica for the documents)…

Verizon’s current position, as stated in correspondence and meetings with the City, is that fulfilling the “premises passed” obligation does not, with respect to a given premises, necessarily involve running fiber immediately in front of or behind the premises. Rather, Verizon has asserted, it should be deemed to have “passed” an individual building if it has run fiber to a nearby intersection and could access the building with further deployment of fiber. In particular, with respect to MDUs, Verizon has argued that an MDU should count as “passed” as long as Verizon intends eventually to run fiber to it, not directly from the street, but rather through an adjacent MDU or a chain of such MDUs, whether or not Verizon has obtained access to any of the MDUs from the property owners.

Verizon responded by saying, in effect, we were so simpatico with New York City that we didn’t have put all that in writing, and threatening to leave the market

Verizon has the option of opening negotiations for a renewal of the Agreement in July. Unfortunately, the City’s intransigence does not create a favorable environment for such negotiations. We would urge the City not to make it impossible for Verizon to continue to provide New York City residents with a competitive alternative to cable TV.

It’s certainly true that landlords can and do block access to competitive broadband companies. San Francisco has taken a different approach and outlawed the practice. That’s yet to be tested in court, though.

Verizon could close a big competitive gap with Charter’s fiber

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Verizon needs to build more than 100,000 new cell sites and add more fiber connectivity to close a capacity gap with its U.S. competitors, according to a report from New Street Research. And, the report concludes, buying Charter Communications – as rumors say it might – could help solve some of Verizon’s problems. It wouldn’t be much benefit to Charter, though.

The report estimates that when the number of cell sites and the amount of spectrum used is taken into consideration, Verizon has a bit more than half of the capacity per subscriber that AT&T and T-Mobile have. In order to catch up, Verizon would have to build 69,000 new macro – traditional, big – cell sites, or 138,000 or more small cell sites. New Street estimates that if small cells are properly located to reach high concentrations of subscribers, it would only take two to replace a big cell site. To fully cover the same geographic area, though, the ratio is more like ten to one.

Those sites would all need back haul, of course, which is where Charter comes in. Verizon still has some wireline assets of its own, but Charter’s footprint is much bigger and U.S. cable companies have more fiber – and more easily accessed fiber – than telcos. “Cable has much greater fiber density than their wireline competitors”, the report says. “To put this in perspective, the Cable industry has 320,000 nodes today, the vast majority of which are fed with fiber. By contrast, telecom carriers have 23,000 fiber fed central offices”.

So a cable acquisition would be an advantage for Verizon. From Charter’s perspective, the benefits aren’t clear. New Street discounts speculation that a cable-mobile merger would reduce churn, concluding that Verizon’s is a low as it can go and there’s no hard evidence that it would have much more than a marginal impact on Charter’s.

The report makes several other good points about the cable and mobile sectors, and telecoms in general, and is worth reading. New Street’s top line conclusion is that an acquisition is less likely than originally thought, and “our working hypothesis is that it will be very tough for Verizon to structure a deal that Charter will find compelling”.

5G for fixed service is so ordinary says T-Mobile

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It’s like I said, their view never changes.

There’s a war of words between T-Mobile and its larger competitors, AT&T and Verizon, over using advanced mobile technologies – 5G is the undefined buzz word – as a DSL replacement to provide fixed Internet service to homes and businesses. Neville Ray, T-Mobile’s chief technology officer, says 2017 isn’t the year to get excited about 5G, particularly AT&T’s and Verizon’s version of it

No one’s more excited about this brilliant technology than I am. But it will take several more years for 5G to be meaningful for mobile. The carriers’ current vision for 5G is mind-numbingly limited. 5G’s potential is so much larger than replacing in-home broadband and IoT. But they can’t see beyond their own wallets. AT&T wants to “connect your world” – including your bank account – to AT&T. Verizon’s grand vision is that you Netflix at home with wireless Verizon broadband. How is that game changing?

Of course, with their copper networks, AT&T and Verizon have a different business model and motivation than wireless-only T-Mobile. According to a story in Fierce Wireless by Mike Dano, the two legacy carriers are moving ahead with or without a firm 5G spec…

Both AT&T and Verizon are moving forward with plans to at least test and potentially commercially deploy fixed wireless services that would leverage initial 5G technologies (industry executives expect the 3GPP’s [ the 5G standards body] to finalize the initial standard for fixed 5G in the coming months). Verizon, for example, has already installed 5G equipment for fixed wireless services in more than 10 U.S. cities. However…Verizon may have to upgrade its physical equipment at its sites in the 10 cities in order to ensure that its services work with the 3GPP’s forthcoming 5G standard.

AT&T also has fixed wireless tests in the works, including its so called wireless local loop technology that it plans to use as a replacement for wireline service in rural California.

Haven’t seen the facts about AT&T, Time Warner merger, Trump says

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Translation: never mind.

Donald Trump is backing off from his stated opposition to the AT&T – Time Warner transaction. According to the Axios blog, Trump said in an interview

“I have been on the record in the past of saying it’s too big and we have to keep competition. So, but other than that, I haven’t, you know, I haven’t seen any of the facts, yet. I’m sure that will be presented to me and to the people within government.”

Wall Street’s optimism about a kinder attitude toward big mergers in Washington, DC appears to be a safer bet.

Yuge telecoms companies expect to get yuger

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Big money is leaning in the direction of a permissive, rather than populist, Trump presidency, at least when it comes to big telecoms mergers. AT&T CEO Randall Stephenson met with Trump last week. Although both AT&T and Trump’s team insist that the pending acquisition of Time Warner wasn’t discussed, Stephenson continues to project optimism that federal regulators – the justice department’s anti-trust unit and, possibly, the Federal Communications Commission – will allow it to go forward. That’s despite Trump’s initial – and probably knee jerk – public opposition to it.

Now comes word that Verizon wants to buy Comcast or Charter. That’s a much different beast. According to a story in the New York Post, Verizon CEO Lowell McAdam is on the prowl for a big cable company

The CEO told friends at the Consumer Electronics Show in Las Vegas earlier this month that he wants to buy into cable, one source said.

“They need it for 5G,” said a second source, confirming McAdam’s interest.

The most likely targets would be “Charter or Comcast,” the source noted.

“Altice is too small,” the source speculated.

To be sure, Verizon is not in talks with any cable company and may not ever make such a move.

A vertical integration play, like AT&T and Time Warner, is one thing. The Obama administration allowed Comcast to vertically integrate with its acquisition of NBC-Universal. But up until now, there’s been a limit on large scale horizontal combinations – Comcast wasn’t allowed to buy Time Warner Cable (although Charter, a smaller company, was) and neither Sprint nor AT&T gained permission to hook up with T-Mobile.

In addition to the Verizon rumor, there’s renewed speculation about another try at a T-Mobile and Sprint combo, or maybe even a three-way Comcast-Charter-Cox takeover of T-Mobile. The mere fact that the possibility is taken seriously says that Wall Street analysts and big company CEOs – arguably the people who know Trump best – see him as the deal maker he’s always been rather than the anti-establishment candidate he became.

Update: Trump is backing off from his stated opposition to the AT&T-Time Warner transaction. According to the Axios blog, Trump said in an interview

“I have been on the record in the past of saying it’s too big and we have to keep competition. So, but other than that, I haven’t, you know, I haven’t seen any of the facts, yet. I’m sure that will be presented to me and to the people within government.”

Mobile carriers losing the data upgrade race to Californian demand

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You can get more bits per second from mobile broadband carriers in California, but your odds of getting those faster speeds at any given moment are dropping. That’s what the California Public Utilities Commission’s mobile field testing result are showing. You can read the excellent blog post by commission staffer Rob Osborne here. He shows that mobile broadband speeds are increasing, but sums it up diplomatically: “it’s hard to say, but it appears the likelihood of getting the average speed at a particular location is lower than before”.

The CPUC has been running a regular series of Internet speed tests at more than a thousand specific locations for several years now. Over that time, mobile companies have upgraded their infrastructure and are capable of delivering fast, sometimes really fast, service. But judging from the latest results, either Californians are increasing their consumption of mobile data at an even faster rate, or the consistency of the new technology being deployed is dropping, or both.

Between the tests conducted a year ago and the latest round done this past spring, Verizon’s average speed in California – the highest of the four major carriers – increased from about 14 Mbps to just over 16 Mbps. Sprint stayed even at about 8 Mbps, T-Mobile went from 12 Mbps to 13 Mbps, and AT&T increased from 12 Mbps to just under 14 Mbps.

On the other hand, you have less of a chance of actually getting that kind of performance at any given moment. Rob does a good job of explaining the math and the methodology, but the bottom line is that the speeds you can expect to experience, as opposed to overall average speeds, are dropping: from 4 Mbps to just over 2 Mbps for Verizon, more or less the same range but a bit lower for AT&T and an even steeper drop to 1 Mbps for T-Mobile. Sprint only dropped a little, but its expected speeds are in the sub-2 Mbps range.

Mobile carriers are investing in more and better infrastructure, but judging from the CPUC’s measurements, not quickly enough to keep pace with Californians.

Advertising group sides with Verizon, slaps Comcast Internet claims

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When elephants mud wrestle.

Comcast’s advertising claims that it “delivers America’s fastest Internet” and “the fastest, most reliable in-home WiFi” aren’t supported and should be pulled. That’s the finding of the advertising industry’s self-regulation board, called the National Advertising Division (NAD). Responding to a complaint filed by Verizon, which naturally would prefer you think it has the fastest Internet service, NAD said Comcast used dubious data to back up its pitch

As support for its claims that XFINITY delivers America’s “fastest Internet,” Comcast relied on crowdsourced data from Ookla’s “Speedtest” application. Ookla’s “Speedtest” is an application which consumers download on their mobile devices and can run to measure their current upload and download speeds. Ookla’s “fastest Internet in America” award is based on a different methodology than previous NAD cases involving superior speed claims, but is also intended to show the “top-end performance of a given ISP.”

However, NAD noted in its decision, instead of relying on an aggregation of crowdsourced data on download and upload speeds, Ookla based its award on the top 10 percent of each ISP’s Speedtest download results.

NAD determined that Ookla’s methodology wasn’t a good fit for the purposes of substantiating Comcast’s overall superior speed performance claim that “XFINITY delivers the fastest Internet in America.” NAD recommended the claim be discontinued.

The WiFi claim was skating on even thinner ice – it was based on an in-house comparison of Comcast’s and Verizon’s home routers.

NAD also dinged Comcast for saying “Verizon is eliminating its traditional home phone service in certain markets” and that “Verizon is discontinuing its copper wire-based home phone service”. It called the statements “potentially confusing” and recommended Comcast change it to avoid giving the impression that Verizon was eliminating phone service completely.

Comcast’s response was to disagree and say it would appeal the finding.

New network standards fuel Verizon IoT push

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U.S. mobile carriers will offer specialised Internet of things (IoT) services in a big way next year. Some of the motivation is competitive, the result of pressure from companies using unlicensed spectrum, but it seems to be mostly the result of new technology protocols for the LTE standard that support IoT applications and, critically, business cases.

Verizon announced its plans for full, nationwide deployment of a key IoT standard by April 2017 at the Telit IoT Innovation conference in Las Vegas yesterday. Erik Varney, senior manager of IoT consulting at Verizon Wireless, said that their network will be upgraded to support the LTE category M1 protocol, which supports low bandwidth applications running on low power equipment, on licensed spectrum. As the table above shows, the M1 standard falls midway between the conventional LTE standard and the more aggressive LTE NB1 (for narrow band) which is optimised for fixed, very low power IoT devices for applications with very low bandwidth needs.

One question yet to be fully answered is how much will it cost? During audience Q&A, Varney said that Verizon is becoming more flexible and moving away from traditional mobile phone data plans, but more work is needed on the network side too: pricing models are, to a degree, a function of a network designed to support high priority, high priority communications on demand – 911 calls, for example – but IoT applications often involve intermittent, non-time sensitive transmission of a few bytes of data.

Ken Bednasz, vice president of application engineering at Telit (and the guy who presented the table above), pointed to 2018 as the time frame for IoT-optimised protocols, which were released earlier this year, to be in full, mass market deployment in the U.S. Cat M1 technology will come first and NB1-based systems, which he described as being better suited to new market segments, following.