Transcript Verizon`s Corporate Profile 2011

Overview of Verizon &
Global Public Policy Issues
for the Internet Ecosystem
Chris Boam
Director, International Public Policy
and Regulatory Affairs
7 October 2011
© 2007 Verizon. All Rights Reserved. PTE12065 03/07
Washington, D.C.
Verizon Communications
Innovative Communications, Information and Entertainment – Around the Globe
Wireless
106M total connections
America’s largest and most
reliable wireless network
Launched next-generation, 4G
high-speed broadband wireless
network in 2010
Broadband access in 264 U.S.
major metropolitan areas
Industry-leading customer
loyalty for U.S. wireless
providers
Consumer and
Small Business
Largest 100% fiber-optic
network in the U.S.
Transforming from traditional
telecom into a broadband and
entertainment business
4.5M FiOS Internet subscribers
and 3.84M FiOS TV
subscribers
8.6M Wireline Broadband
connections
16.1 million premises passed
with FTTH
Enterprise Business
Enterprise (including 96% of
Fortune 1000) and government
customers worldwide
The world’s Most Connected
Global IP Network. *
Manage 260K+ servers,
routers, devices
Leading provider of managed
information security services
150+ countries, 2700+ cities
485,000 route miles of cable
over six continents
* Telegeography, Global Internet Geography Report, 10 Dec. 2010
2
Statistics as of 8/11
Connecting Customers around the Globe
– the Power of IP Networks
Verizon’s International Presence
Global Internet
Backbone
Investments in
more than 80
Undersea Cables
Europe-India Gateway
(EIG) next
International IP
Network for
Enterprise services
Verizon Business in Europe:
• Voice, Global Data Link (GDL), Private IP (PIP), Frame/ATM, IP,
•
3
Dial, and a premiere suite of managed service solutions,
including – IT, security, communications, cloud-based
applications and networking
VzB-International Headquarters located in Reading, U.K.
(approximately 1,800 employees)
Expanding Broadband Deployment is a Key
Social Policy Goal to which Verizon is Committed
Capital Expenditures (in US$ billions)
Figures used are as of 1Q 2011
4
Source: All values from Yahoo Finance data, with the exception of:
Deutsche Telekom, Telecom Italia, News Corp. – from earnings reports
VZ
700
LTE
ODI
Advancing 4G Wireless Broadband
with LTE/700MHz
Why Long Term
Evolution (LTE)?
•
•
•
•
Significant throughput
Low-latency, IP-based
Global standard
Scale economies
What is our Open
Development Initiative
(ODI)?
•
•
•
•
Any
Any
Any
Any
device
application
content
distribution
– Currently covering more than 160 million Americans in 143
markets; more than 185 million in 175 markets by EOY-2011
– Expand to national coverage of the U.S. by 2013
– Speeds 10 x faster; latency reduced by 50%
– LTE being deployed globally
– “It’s about a firefighter who can download the design of a
burning building onto a handheld device, a student who
can take classes with a digital textbook, or a patient who
can have face-to-face chats with her doctor.” *
Moving
aggressively
to utilize the
spectrum and
deploy LTE
* U.S. President Barak Obama, State of the Union Message, 25 January 2011
5
What is FiOS?
•
Began in 2005 – to-date, $23 billion in an all-digital fibre-optic
network extends to the customers’ premises (FTTP), with
another $1.5 billion investment planned in 2011.
– “Triple play” – supports digital voice and high-speed Internet at speeds of up to
150/35 Mbps in more than 2,000 communities in 12 states and D.C.
– FiOS TV – Up to 597 total channels and on-demand now offered in 200 cities in
12 states + D.C., with web- and mobile-enabled programming guide, DVR
programming and parental controls
150 HDTV channels, 3D content (9/2011)
– more than cable –
25,000+ VoD titles total
3,800 HD VOD titles each month
Conducted 2nd successful field trial of an XG-PON system than can transmit data at 10 gigabits per
second (Gbps) downstream and 2.4 Gbps upstream—trial demonstrates the future-proof capabilities
of the FiOS network and how it will be ready to handle higher bandwidth demands (3DTV) (July 2010)
6
Exceptional FiOS Results
Verizon FiOS TV Subscribers
3.5M
Verizon FiOS Internet
Subscribers and Penetration
3500000
3000000
2500000
4500000
1.9M
2000000
4000000
1500000
943K
1000000
500000
100%
3.9M
2.5M
3500000
348K
70%
60%
2500000
0
2005
2006
80%
3000000
3K
2007
2008
2010
1000000
A 57% increase in availability, coupled
with 28% in penetration.
1.5M
2000000
1500000
90%
50%
687K
375K
12%
21%
24.9%
27.2%
40%
30%
15%
20%
500000
10%
0
0%
2005
2006
2007
Subscribers
2008
2010
Penetration
70% of subscribers are new to Verizon broadband
* Green box figures as of 2009, all others 12/2010
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Decreasing Cost and Transforming
the Maintenance Process
Network Trouble Report Rate – Outside
Plant (per 100 subscribers)
1.01
Well on the way to
where we wanted
to be.
80%
0.20
Cost Per Premises Connected
Voice & DSL
$1,220
FiOS
Total field maintenance dispatches and OSP-related
dispatches are already showing solid declines
* Percentages reflect 2006 data
$933
$880
$700
'Jan 06
8
'Aug 06
'Dec 06
'proj. 10
One of the
benefits of fiber,
certainly, but PON
architecture,
particularly
Verizon’s Network: an Integral
Part of the Internet
• Every day, more than 100 million people connect using a Verizon
network:
–
–
–
–
–
–
1.7 billion text messages are exchanged (> 190 billion in the 2nd quarter of 2011 alone)
50 million video/pictures exchanged
400 million emails received
8.7 petabytes of video streamed – the equivalent of 4 million full-length movies
5 billion potential threats monitored and acted upon
1 billion phone calls are connected
• Network management – constant technical innovation, enabling
services for businesses (for example):
– Blocking a distributed denial of service attack
– Facilitating seamless video and interactive conferencing solutions
– Providing virtual private networks (VPNs)
For consumers (for example):
– Blocking spam or phishing emails
– Enabling real-time home medical monitoring
– Delivering the highest quality IP television experience
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Verizon’s Position on Net Neutrality
•
Verizon continues to champion the consumer-driven open Internet.
– Verizon agrees that the Internet must remain an unrestricted and open platform to
access lawful content, services and applications, a principle we affirmed with our
wireless Open Development Initiative and the proposed framework we announced with
Google in August 2010.
•
Verizon believes that Europe adopted a sound policy around these issues in the
course of its Electronic Communications Framework Review, with:
– An emphasis on transparency
– Recognition of the importance of network management
– Reliance on ex post competition law to address alleged problems, use of case-by-case
approach, possibility of minimum QoS obligations
•
In December, the FCC issued an order on network neutrality that also emphasizes
transparency – we support the notion of appropriate transparency, though we note
that too much disclosure can be problematic in some areas (e.g., security practices).
•
Importantly, the FCC adopted a case-by-case approach to addressing issues that
might arise. The FCC also exempted enterprise services from these obligations.
•
These points notwithstanding, Verizon is concerned that the FCC has acted outside
of the authority available to it by law. That concern about legal jurisdiction is the
focus of our judicial appeal.
10
Next Steps for U.S. Broadband
•
There is no doubt that U.S. policies have produced results:
– Approximately 98% of the U.S. has access to at least one platform (cable) for
broadband service (85% have access to at least two, including cable and DSL)
– Only 37% of U.S. broadband subscribers rely on DSL for their broadband, a strength in
platform competition that is rare globally.
– Over 68% of American households take-up broadband.
– The ITU ranks the U.S. 4th in average broadband price, behind Macao, Israel and H.K.
– The take-up of mobile Internet by users is roughly 30% of all U.S. subscribers (highest
globally), whereas it’s 19% in Japan, 16% in the U.K., 7% in France.
•
But as highlighted in the FCC’s National Broadband Plan:
– We need to reach those who don’t have broadband, but to do so, we need to take a
hard look at our subsidies – how we support efforts to build out to underserved areas
– Mobile broadband rollout in the U.S. has been rapid and a global leader, but for it to
continue, we need more spectrum and an open and orderly process to access it
– Addressing demand will be critical, to emphasize to the remaining 32% of U.S.
households, who don’t take-up broadband, the relevance of it to daily life
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Action Agenda – Unlocking Potential
From the Internet Ecosystem
•
What we know: The Internet Economy, supported by information and
communication technologies, will strengthen our capacity to improve the quality of
life for all our citizens. *
•
What we need:
– A stable, reliable and trusted infrastructure, capable of addressing and responding
to emerging risks and threats. *
– Foster innovation and ongoing expansion of the Internet by avoiding regulation
that could jeopardize “the open, decentralized and dynamic nature” of the Internet. **
– Stimulate investment and competition in the development of high-capacity
information and communication infrastructures. **
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* From the “Declaration on the Future of the Internet Economy.”
** From “Internet 2018: a Business Vision paper for the OECD Ministerial.”