What comes first for a digital transformation, the right ...
Managing Transformation - Verizon · Managing Transformation: Copper to Fiber and TDM to Ethernet ....
19
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. Managing Transformation: Copper to Fiber and TDM to Ethernet Verizon Partner Solutions Making the right moves at the right time for the right reasons.
Transcript of Managing Transformation - Verizon · Managing Transformation: Copper to Fiber and TDM to Ethernet ....
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.
Managing Transformation: Copper to Fiber and TDM to Ethernet
Verizon Partner Solutions
Making the right moves at the right time for the right reasons.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2
SAFE HARBOR
NOTE: In this presentation we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “hopes” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the ability to realize the expected benefits of our transaction with Vodafone in the timeframe expected or at all; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significantly increased levels of indebtedness as a result of the Vodafone transaction; changes in tax laws or treaties, or in their interpretation; adverse conditions in the U.S. and international economies; material adverse changes in labor matters, including labor negotiations, and any resulting financial and/or operational impact; material changes in technology or technology substitution; disruption of our key suppliers’ provisioning of products or services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of war or significant litigation and any resulting financial impact not covered by insurance; the effects of competition in the markets in which we operate; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; significant increases in benefit plan costs or lower investment returns on plan assets; and the inability to implement our business strategies.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3
Throughout History
2011 Smartphones
Tablets
2005 CaTV Bundles
2004 FiOS & VoIP
1870s When it all
began
1934 Original
Telecom Act
1970’s Wireless
1980’s MFJ
1996 Wireline
Unbundling
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4
Copper is fragile.
Drivers
Customers fleeing copper.
Copper prices. Capacity.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5
How can we best serve your customers’ needs today, without sacrificing the future? Network Transformation.
Which Leads Us To
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6
Verizon … Through the Transition
• Verizon plans to maintain Copper, Fiber and Wireless networks for the foreseeable future
• Copper based services – like TDM – are an important part of the Verizon suite of offerings - Proven track record. - Common interface for CPE. - Largest private line circuit type in our inventory.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7
Improving reliability in Verizon’s most challenging locations will increase service reliability with YOUR end users
Reliability
• Over 700K fiber migrations • Up to 30% upsell rate
• 10% of customers drive 70% of trouble dispatches
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 8
Triggers for Network Transformation
Customer Initiated • More data • Higher speeds • New applications
GROW WITH YOUR CUSTOMERS
Emergency Response • Copper susceptibility • Environmental impacts • Replace vs. repair cost
IMPROVE SERVICE ASSURANCE
Service Provider • Next-gen architecture • End of life costs • Service enhancements
‘FUTURE PROOF’ CONNECTIVITY
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 9
As customer options continue to grow, we must leverage the latest technology to meet the needs of today and the future.
Network Transformation
Network Transformation enables us to
Deliver current services with better reliability
Position the network for future demand
2014 results
Upgraded 6 wire centers across 5 states
2.1k circuits across 90 carriers migrated off copper
Over 2,000,000 feet of copper retired
Introduced new technologies
- DS1 over GPON – 96 migrations, 11 new
- UNE Analog loops over FTTP – 282 migrations
2015: continued focus on network upgrades and product/service enhancements
ORCHARD PARK, NY
HUMMELSTOWN, PA
LYNNFIELD, MA
BELLE HARBOR, NY
FARMINGDALE, NJ
OCEAN VIEW, VA
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 10
Fiber-based Alternatives to Copper Services
On Copper
Current On Fiber
Replacement Features Cost
POTS POTS Same $ $
UNE UNE on Fiber Same $ $
DSL FTTI Speed $ $$
EoC Ethernet Same $ $$$
We’ll work with you to give your customers the best solution.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 11
Very High Bandwidth Scaling FTTI can be installed with slower, entry level speeds. Seamless upgrades are easy and cost effective for end users and providers.
Leverages the FIOS Architecture FTTI leverages a world-class Fiber to the Workplace infrastructure that creates added value to the customer and ease of sale for the provider.
Very Quick Installation Due to the GPON infrastructure, most FTTI installs can be under 5 business days. Often 3 day installs are possible.
Example of Copper to Fiber FTTI
Perfect Platform to Layer Value Added Services FTTI has tremendous bandwidth and low latency, which enables providers to layer on management services, VOIP and other solutions to increase the value of their offering.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 12
The FTTI Five (+1)
Dynamic IP
25/25 Speed
Lead List Automation
Businesses can open their FTTI router to allow WiFi connectivity to their visitors and guests
IP addresses are dynamically assigned to devices when
they attach to the network – less expensive then static IP
addressing
Our symmetrical speed gives our FTTI customers the ability to offer savings and symmetrical speeds to their end users with lower bandwidth requirements
Customers can download a list of qualified FTTI addresses open for sale. Total qualified base addresses of 231,306 / 593,998 sub-locations
Web GUI to place orders, validate addresses and view customer service requests
FIBER TO THE INTERNET Shades of Green
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 13
Network Transformation Local Service Options on Fiber
• Resale POTS over Fiber - When copper is retired - Where ONT existed for an end user - Where fiber loops are deployed
• UNE Loops - Analog loops on fiber unbundled 64K voice-grade channel - Same ordering, same pricing - Digital DSL UNEs migrated to fiber FTTI, Ethernet, TLS, DS1
• WA POTS over Fiber - When copper is retired - When copper is rendered unserviceable – chronic problems - Provisioning option beginning 2Q 2015 - Same ordering, same pricing*
* Subject to change in accordance with the terms of contract
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 14
• Excellent for chronic voice-only lines or customers with immediate needs
• Proven, reliable technology
– “The best network coverage”
– No wires
– Customer-managed battery back-up
• Available in and out of footprint
• Comparably priced
• Not designed to replace all copper
• Not compatible with home health monitoring / alarm systems
Network Transformation Wireline to Wireless ~ Voice
Quick Voice
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 15
Effective Wireless Router Solutions: • Business continuity network connectivity
• Primary network connections for “challenging” sites
• Rapid network deployment
• Nationwide availability
• Wi-Fi connectivity
Network Transformation Wireline to Wireless ~ Data
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 16
Network Transformation
TDM to Ethernet
Whether copper-to-fiber or fiber-to-fiber, the transformation to Ethernet is the future.
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 17
Why Verizon’s Ethernet?
New DS1 = $250
TDM Ethernet
Connection Before: 3MB ($300.00)
Connection After: 10MB ($400.00)
Simple. Scalable. Flexible.
Cost-Efficient Capacity.
TDM Customer Ethernet* Customer
Current 3MB Capacity 2 DS1s 3MB connection Current Cost / Month $500 $300 Current Cost / MB Capacity $166 $100 New 10MB Capacity 7 DS1s 10MB connection New Cost per Month $1750 $400 Incremental Cost / MB Capacity $166 $14
*TLS Titan program pricing
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 18
Network Transformation
Confidential and proprietary materials for authorized Verizon personnel and outside agencies only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 19
Thank you. Enjoy Miami!
Sarah Lamothe [email protected]
Bob Citro [email protected]
Traci Evans [email protected]
Larry O’Neill [email protected]
Janice Crandall [email protected]
