Verizon Communications (Quote) may divest millions of local phone
lines as its fiber-to-the-premises and wireless businesses become more
central to its long-term plans, company officials said.
"We are considering the possibility of divesting some access lines using a
mechanism, such as a spinout -- although [there is] nothing firm about that
yet," Peter Thonis, a Verizon spokesman, told internetnews.com.
Larry Babbio, Verizon vice
chairman and president, broached the possibility of a local line reduction at an analyst meeting in New York
yesterday, Thonis said.
Verizon could look to divest as many as 10 million to 15 million of its 54
million consumer and business lines. Thonis stressed that no final decision
has been made and declined to speculate on how much the move could bring the
regional carrier.
But what is clear is that Verizon's local line base continues to slip, and
the company has spent a lot of time and money on fiber and wireless
initiatives.
Last week, Verizon named the next six states in its FTTP rollout.
The carrier will deploy the infrastructure -- which can deliver high-speed
data, voice and video -- in parts of Delaware, Maryland, Massachusetts, New
York, Pennsylvania and Virginia.
It's already offered to consumers and small and medium businesses in parts
of California, Florida and Texas. The strategy targets cable providers, such
as Comcast (Quote) and Time Warner Cable.
FTTP uses hair-width, fiber-optic strands to carry content -- including
video programming -- to residential and small-business customers. The Baby
Bells say the technology will enable them to offer a better bundle of
television, broadband and phone service.
Meanwhile, Verizon Wireless, a joint venture between Verizon Communications
and Vodafone (Quote), is coming off an impressive quarter where it
added 1.7 million new subscribers.
And earlier today, Verizon Wireless said it completed the purchase
of the spectrum license for the New York metropolitan area auctioned by
NextWave Telecom for $930 million.
Images
