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Verizon's Seidenberg: We're not worried about landline loss
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Traditional voice landline loss continues to be an ongoing reality for every U.S. telco, but Ivan Seidenberg, Verizon's CEO, says he's not going to waste any more of his energy thinking about it. During this week's Goldman Sachs Comunicopia conference in New York, Seidenberg declared that his "thinking has matured" and attempting to figure out when landline loss would stop "is like the dog chasing the bus."
Two substitutes are driving landline loss for Verizon and its two RBOC brothers, AT&T and Qwest; consumers are replacing their traditional landline service with cable telephony, or replacing their wired phone with a cell phone. But none of this is bothering Seidenberg. Instead of worrying about landline loss, Seidenberg says the service provider will focus more of its attention on selling cellular services and delivering enhanced video over its Fiber to the Premises-based FiOS service.
Seidenberg was quoted in a New York Times article as saying that "video is going to be the core product in the fixed-line business." Also, the telco will turn attention towards driving further integration between video and the wireless phone.
For more:
- The New York Times has this article
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Comments
Posted by Anonymous | December 26, 2009 - 4:44pm
Neither Verizon nor AT&T seem to care about landline loss. This has been going on for years but neither company has reacted so it appears to me (as a former employee) that for some reason thry want to lose landlines. Think about it, when was the last time you saw a commercial pushing landline service? When was the last time you were told why you would want a landline? Imagine if this were McDonalds and they were suddenly losing customers (actually they are in this recession). Would McDonalds lay back and just let it happen? No of course not. But the geniuses who run the telecom companies don't seem to care enough to react to loss of revenue. Maybe becuase they pay the wireless employees less and this is a good way to decimate the wired-side employees jobs? Seems odd to me.
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