Verizon Partner Solutions, the wholesale arm of Verizon Communications, has been going through a number of changes in 2010. One of the most significant changes the company came in January when Verizon consolidated its international and domestic wholesale units under one common one single global group--Verizon Global Wholesale.
Taking part in the growth of the wholesale unit is Quintin Lew, Sr. Vice President of Marketing, Verizon Global Wholesale, whose experience at extends back to the former NYNEX, the precursor to Verizon.
Lew has chronicled two main areas growth in for Verizon's wholesale business: wireless backhaul and content delivery.
Serving its wireless brother Verizon Wireless and its ongoing migration to 4G LTE and other wireless operators, Verizon Partners has committed resources to support 3-4,000 cell sites. While Ethernet is the growing medium for wireless backhaul, he's still selling T1 and TDM access for existing 3G networks where needed.
Verizon Wholesale's dedication to providing wireless backhaul paid off as it announced this week that it will provide fiber-optic links between more than 3,500 Verizon Wireless cell sites and the company's mobile telephone switching offices in 25 states and the District of Columbia.
"Obviously, we have a long way to go to meet our wireless backhaul deployment targets, but based on our track record you have seen Verizon Wireless launch its initial LTE deployments which were very much a large part of," Lew said. "We look to continue that and know that will drive our revenue down the road."
And while the migration to fiber-based Ethernet will have an impact traditional TDM-based revenue, Lew says it also "sees the bandwidth requirements going where they are today from 20 Mbps, 50 Mbps, 300 Mbps and 1 Gbps speeds, but we'll have the infrastructure to support whatever scale of expansion our customers are looking for."
Wireless backhaul is just one of two major growth areas for Verizon Wholesale. While Lew could not name specific customers, he said that consumer demand for online and on-demand video content is driving the company to make its wholesale network services attractive to various content aggregators such as Akamai and Limelight.
Traditionally served through peering arrangements with other wholesale carriers (AT&T or Level 3, for example), they were connecting to Verizon's end-users for free. Last year, Verizon launched a service that would allow content providers move closer to the end-user by connecting directly into its network using IP port and IP transit services.
Such an implementation provides various benefits to Verizon Wholesale and the content providers. "We actually alleviate the congestion in the network that all this video content is creating and it creates more of a direct model for Verizon on a wholesale basis to work with these content providers," Lew said.
Besides articulating its new name to the market, Verizon much like its other incumbent operators will have to ride the reality that their legacy cash cow TDM service revenue will continue to decline while IP continues to rise.