Bell Atlantic to Announce Winning Broadband Vendors for Full-Service Network

Strategic Insights -

Bell Atlantic plans to announce winning vendors for its fiber, copper, and coax full-service network within the next two weeks. President and CEO Ray Smith announced this during a news conference after the company's annual shareholder meeting. While Smith refused to reveal the names of the winning vendors, contracts had not yet been signed. A recent Wall Street Journal report named AT&T, DSC Communications Corp., and General Instrument as the likely winners of the large-volume regional holding company business.

Key Takeaways:

  • Bell Atlantic plans to employ all three wireline technologies (fiber, copper, and coax) for its full-service network, showing a desire for flexibility in wireline plant.
  • The company is still waiting for the FCC to approve its 214 video dialtone (VDT) application, which would allow it to transport video signals and offer full-service-network offerings.
  • Bell Atlantic is interested in selling its Asymmetrical Digital Subscriber Line (ADSL) services in low-density rural areas, which could be a significant revenue stream for the company.
  • The company believes residential customers will spend an average of $200 to $250 per year for broadband, interactive video services.
  • Bell Atlantic is considering using copper lines despite its plans to deploy fiber, due to the potential for selling ADSL services in rural areas.
  • A three-judge panel in Pennsylvania has recommended that state regulators reject Bell Atlantic's proposal for automatic yearly increases in phone rates to help pay for a state-wide fiber network.

Statistics:

  • $200 to $250: the average annual amount residential customers are expected to spend on Bell Atlantic's broadband, interactive video services.
  • $16 billion: the cost of Pacific Bell's fiber-coax architecture upgrade.
  • 214: the number of Bell Atlantic's video dialtone (VDT) application, which is still pending with the FCC.
  • 36%: the percentage of Bell Atlantic's customers living in rural areas that the company is targeting with its ADSL services.

Sources:

  • The Wall Street Journal
  • FIBER OPTICS NEWS
  • Bell Atlantic's annual shareholder meeting