WIRELINE EVOLUTION
Tom Maguire
Chris Levendos
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.
THANK YOU
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.
AGENDA
1. A quick history lesson
2. Why we need Wireline Evolution
3. What is Wireline Evolution
4. Where do we go from here
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
A Quick History Of Telecom
1870s
When it all
began
1934
Original
Telecom
Act
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
A Quick History Of Telecom
1980s
MFJ
1996
Wireline
Unbundling
1970s
Commercial
Wireless
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
A Quick History Of Telecom
2004
2005
2011
FiOS
and VoIP
CaTV
Bundles
Smartphones
and Tablets
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
A Quick History Of Us
1950s
Original
Maguire and
Levendos
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
1950s
Original
Maguire and
Levendos
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
A Quick History Of Us
1950s
1980s
Original
Maguire and
Levendos
Maguire and
Levendos –
The Sequel
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
The One Constant
COPPER
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
Why we need Wireline Evolution
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
1) Copper utilization has been declining
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
Customers Are Fleeing Copper
53M
17.4M
35.6M copper lines lost in 12 years
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
Customer Options Continue to Grow
Customers have more choices than ever.
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
Our Verizon Neighborhood
Central Office
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
Our Verizon Neighborhood
40%
• >30% already
cut the cord
• 60% bundle
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
2) Copper is fragile
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
Copper Is Fragile
Issue #2
Central Office
Metal + Water = Service Disruptions
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
Copper Is Fragile
• Copper deteriorates despite ongoing,
expensive maintenance efforts
Noise, crosstalk, static
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
How can we best serve today’s customer
without sacrificing 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.
20
Wireline Evolution
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.
21
What is Wireline Evolution?
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.
22
What Is Wireline Evolution?
Wireline Evolution Is
• A way to leverage the latest
technology to meet the
needs of our existing and
future customers
–
–
–
–
Deliver better reliability
Maintain customer cost
Position network for future
Eliminate unnecessary
operational expenses
•
•
•
•
Wireline Evolution Is Not
The IP transition
A way to charge customers
more money
Anti-competitive
The end of copper
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.
23
Our Verizon Neighborhood
Central Office
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.
24
Identify Customers in Need
Customers
Dispatches
10% of customers drive 70% of 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.
25
A Better Infrastructure
Fiber Runs Parallel To Existing Copper
Central Office
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.
26
Fiber Migration Process
Copper-Fed Home Configuration
Fiber-Fed Home Configuration
H
t
X
X
VZ Central Office
t
O
N
T
VZ Central Office
Over 700K customers better served
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.
27
What about fiber battery back-up?
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.
28
PowerReserve
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.
29
Where Are We Today?
• Over 700K fiber
migrations
OSP Dispatch Rates
• 1M dispatches avoided
Down 85%
• >30% upsell rate
Before
After
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.
30
What happens in copper-only areas?
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.
31
What Happens In Copper-Only Areas?
Central Office
Not everyone has access to fiber ...
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.
32
What Happens In Copper-Only Areas?
Central Office
… but another option is available.
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.
33
What Is Verizon Voice Link?
VVL Is
VVL Is Not
• Designed for voice-only
• Designed to replace all
chronic customers only or
copper
customers with immediate
• More expensive
needs
• Something developed in a
• A proven, reliable technology vacuum - there was
– Uses VzW network
extensive stakeholdering
– No wires to break
– Customer-managed battery
back-up
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.
34
Verizon Voice Link
Service Lights
Antenna
Voice Mail
Battery Indicator
Signal Strength
Line Ports
Power Button
Power Port
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.
35
VVL Migration Process
Copper-Fed Home Configuration
Wireless-Fed Home Configuration
Wireless
Device
t
t
X
X
VZ Central Office
VZ Central Office
Nearly 20K customers on VVL to date
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.
36
Where do we go from here?
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.
37
Where Do We Go From Here?
•
•
•
•
•
•
Network
Evolution
Consumers and
Mass Business
Scattered
Customer-specific
High-cost circuits
No FTTP build out
Reactive or Ask
Tagging
FITOF
TPCA
X-Toggle
Proactive
CMB
Legal / Reg
Fiber Build
VES
VGW
•
•
•
•
•
•
Network
Transformation
All customers
Specific geography
Wire Centerspecific
All copper circuits
FTTP build out
Mandatory
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.
38
Network Transformation Challenges
• Regulatory constraints
• Operational costs
• Complexity of solutions
• Customer Impact
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.
39
2014 Network Transformation Plan
• 6 wire centers, 5 states
• >2M feet of copper will
be retired
• 5 switches can be
powered down
Lynnfield,
MA
Orchard
Park, NY
Belle
Harbor, NY
Hummelstown,
PA
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.
40
Looking Ahead At Verizon
• Continue to migrate customers with chronic
issues
• Cap legacy services by creating new product
solutions
• Pursue plant retirement where practical
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.
41
Looking Ahead At Verizon
COPPER
GLOBAL
NETWORK
WIRELESS
FIBER
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.
42
Thank you
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.
43