Verizon looks to expand backhaul as revenue stream
Published: 30 March, 2009
READ MORE: Verizon
Verizon and AT&T are always accused by rivals of having an unfair advantage because they control such a high proportion of their own backhaul lines, whether fiber or copper, improving their cost base. Now Verizon plans, not only to build on that advantage as it rolls out more fiber, but to make it a new revenue stream, by offering it to other carriers.
The extension of fiber through Verizon's territories will improve its capacity to support its own 3G and 4G cellular networks, as the uptake of mobile data mushrooms. In a statement, the operator said its Ethernet fiber optic network would provide "ultra-high quality" links to cell towers and mobile switching offices, "difficult to achieve when using traditional copper-based or microwave links." But the fiber is available, via the wholesale division Verizon Partner Solutions, to third parties too. These will be offered a choice of a switched Ethernet service, an all-Ethernet option or Ethernet over SONET.
There is speculation over which carriers would feel comfortable depending on a competitor in this very strategic area. Clearwire might be expected to rely on Sprint's recently upgraded backhaul, where it does not have its own systems in place, and AT&T Wireless would presumably turn first to AT&T Wholesale, although there might be some cross-deals where the two giants' territories are complementary. Verizon may well be looking to tier two or new entrant 3G operators such as Cox Communications, Leap Wireless, MetroPCS or Cellular One.
Also from Verizon, the carrier has confirmed that it will start to carry netbooks soon, on a subsidy model, following in the example of AT&T and, of course, the European cellcos.
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