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Verizon/AOL: Bypassing Title II with New Internal Infrastructure?

May, 2015

“The FCC’s chairman “said that he doesn’t see a role for the FCC in reviewing Verizon’s...recent proposed acquisition of AOL....’ I don’t think AOL has any [FCC-issued] licenses, so it would not trigger anything in that regard...,’” according to Telecommunications Reports. We at fibeReality believe that the fundamental unfairness of an Internet service provider being treated as a utility is at the heart of the AOL acquisition and we find the various other explanations that have been given in the market to be unpersuasive. First of all, the idea that Verizon would buy an antique as an initial step to competing directly against Google and Facebook seems absurd – Verizon craves full control of its networks currently enjoyed by these behemoth content providers. It has been over 30 years after the Ma Bell divestiture, and in a way, Verizon is being forced to go...

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Calix’s CEO Still at Top of His Game

February, 2016

Over the last 15 years or so, a lot of great executive talent has left the telecom/datacom optical space either because they made a killing during the bubble, it became time for them to retire, or perhaps they had the good sense to get out of an industry in which it can be extremely difficult to make money. One notable exception is the CEO of Calix, Carl Russo, who rather quietly has continued to use his exceptional skills in a fairly successful way to execute on a very focused business strategy in the space. While like any leader, he has his share of imperfections, Calix has been a company that reflects the best characteristics of the man himself, a solid identification with integrity and credibility, often sorely lacking in our business. When Cisco Systems bought Cerent at an incredibly high...

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If Verizon Has Vague Rationale, Think FCC

September, 2016

For Verizon, there has been the matter of a tremendous buildout of Fiber-to-the-Home (FTTH) infrastructure in the past, which was clearly cost prohibitive, or more recently, supposedly picking up this activity with solutions that do not make sense technically. There have also been the head-scratchers on the purchases of both AOL and Yahoo, the former we addressed over a year earlier. They all have one aspect in common. They are either a means of finding additional ways of obscurely taking fuller advantage of FCC rulings that are favorable to the service provider or of finding an outlet of escape from those regulations unfavorable to the company. During the last decade, Verizon appeared to be justifiably criticized by analysts on the Street and others for its massive construction of FTTH, particularly at the beginning of the process. The economics were not justifiable and there...

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