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

1

Presented at TFI Communication Technology Asset Valuation Conference Jan 24‐25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material. 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

2

Presented at TFI Communication Technology Asset Valuation Conference Jan 24‐25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material.  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

3

Presented at TFI Communication Technology Asset Valuation Conference Jan 24‐25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material.

Channel Bank GWR FiOS CO OLT TDM GW FiOS POTS/Data FiOS Private Line FiOS POTS/Data FiOS FiOS

Switch Collapse

Customers served via both FTTP & copper systems pp y

H.248/GE GR303 DLC Aztek CB

Coin/ IDSN/ P Ph PRI/DID

CB TDM CS2K Or

P-Phone

TDM Host

4

Presented at TFI Communication Technology Asset Valuation Conference Jan 24‐25, 2013 Please contact Mr. Garringer or TFI regarding reproducing presentation material.  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