The telephone business has been built around the copper wire that flows through our communities, cities, and countries like a communication blood stream. However those landline phones that have been an integral part of our homes are headed the way of the Dodo bird – it is just a matter of time.
For Ivan Seidenberg, CEO of Verizon Communications, that time is now. As more and more people are cancelling their traditional landline phones Verizon has decided to not be “like the dog chasing the bus”. Part of this is the selling off most of its rural operations and spending billions to wire the rest of its territory with its FiOS fiber optic network,
FiOS, of course, offers voice calling as well as video and Internet service, but from now, on traditional phone service will be more of an add-on than the centerpiece of Verizon’s offerings to consumers (much as voice service is treated today by cable firms).
“Video is going to be the core product in the fixed-line business,” Mr. Seidenberg declared. And the focus will move from selling bundles of video and landline to video and cellphones, he added.
By converting most of its landline operation to FiOS, Mr. Seidenberg said Verizon has a new opportunity to cut costs sharply.
Source: Bits Blog – Verizon Boss Hangs Up on Landline Phone Business
Mr. Seidenberg is just beginning to work through all the implications of these changes as well as starting to reorganize Verizon in order to emphasize this shift in strategy.
