Customer demand for additional or faster services Cost of operating - PDF document

Panel: Obsolescence of Narrowband Assets Robert Garringer, Verizon TFI Communications Technology Asset Valuation Conference January 24 ‐ 25, 2013  Customer demand for additional or faster services  Cost of operating & maintaining old technology  Cost of operating & maintaining old technology  Capital cost of Replacement technology Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material. 1

 Replace old copper based network with fiber network  Maintenance cost of copper vs fiber  Maintenance cost of copper vs. fiber  Verizon to continue FTTP overbuild  “Sandy” repair/replacement will be all fiber  Move copper in trouble pairs in FiOS overbuilt areas to FTTP  AT&T has also announced plans to pass additional  AT&T has also announced plans to pass additional customers with U ‐ verse  In non ‐ overbuilt areas move customers to Home Fusion  Move network to all IP Protocol  Preferred technology – Ethernet  Preferred technology Ethernet  Replace Digital Circuit Switching  Softswitching  LAG Equipment Line Access / Aggregation Gateways  Switch Bypass  Technologies being replaced g g p  SONET  Frame Relay  ATM Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material. 2

FiOS CO Channel Bank GWR d l a t i g i TDM GW OLT Private Line FiOS FiOS FiOS POTS/Data FiOS POTS/Data FiOS Switch Collapse Customers served via both FTTP & copper systems pp y CS2K Aztek H.248/GE GR303 DLC PRI/DID Or Coin/ CB CB IDSN/ TDM TDM P-Phone P Ph Host Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material. 3

 Excess Capital Costs  Replacement Cost Analysis Replacement Cost Analysis  Excess Operating Expenses  Copper Maintenance  Digital Switch Electricity Usage  Functional Obsolescence Analyses  Excess Capacity  Operating two networks to service same customer base  Customer Loss  Replacement Cost Analysis Presented at TFI Communication Technology Asset Valuation Conference Jan 24 ‐ 25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material. 4