Fiber to the Premises Dick Lynch EVP & CTO November 19, 2009.

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Presentation transcript:

Fiber to the Premises Dick Lynch EVP & CTO November 19, 2009

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 2 Why fiber? Why fiber-to-the-premises (FTTP)? VZ FTTP deployment Future of fiber Outline

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 3 Bandwidth Demand Source: Infonetics and Alcatel-Lucent 1kbit/s 10kbit/s 100kbit/s 1Mbit/s 10Mbit/s 100Mbit/s 1Gbit/s Mbit/s 100 Mbit/s 1Gbit/s /TXT Photo sharing/posting VoIP Gaming Music streaming/download Video streaming/download Social media

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 4 Why Fiber? Bandwidth – with headroom –Today (50/20 Mbps) –Future (00s/00s Mbps) Leading competitive solution –Quality –Reliability Cost effective solution Lower operating cost than copper –More immune to weather –Less active equipment –Cost curve improving Not enough wireless spectrum Fiber Solutions Enhance Capabilities and Efficiencies

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 5 Fiber to the Premises Architecture

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 6 VZ FTTP Program Status Homes Passed (M) % Data Penetration Homes Passed (M)Data Penetration

Confidential and proprietary material for authorized Verizon personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement. 7 Future of Fiber Build costs declining –Innovations –Scale Operating costs declining –Y/Y –vs. copper Profitable field of use increasing –MDUs –Less dense areas Performance improvements –Speeds –Symmetry up/down Only technologies not bounding demand Ultra High Definition TV Business Ethernet HD Video Teleconferencing Home Health Services Smart Grid