At UBS’s Global Media Conference Verizon COO Denny Strigl gave some details on what he sees as the opportunity in opening the network/supporting Google Android, namely:
- new customers acquired cheaply
- new applications developed by third-parties for Verizon phones
- companies other than Verizon supporting those applications/services
- greater likelihood that new generation of G4 connected devices will link-up to Verizon’s network
On the video front, Strigl says the “the question is if, not when” FiOS TV comes to a neighbourhood near you. Unlike the cable operators like Comcast and TWC, Verizon still believes in the “quad-play” (voice, wireless, data, TV) and will offer it on one bill as a differentiator.
Notes on Strigl’s talk after the jump.
1:16: What about mobile advertising. Is VZ interested? Strigl says he’s “certain” the market is moving this way, but he has misgivings. Verizon won’t be first-to-market on mobil advertising, he says. “It must be opt-in.”
1:12: Will VZ offer a push-to-talk feature? “I would say ‘stay tuned.'”–Strigl.
1:10: What are your thoughts on the quad-play now that cable ops appear to be abandoning it? Strigl: We think its very important. today only two providers have the ability to do that quily and easiy in oen bundle. we thin it is significant differentiator. we think its an important competitie advantage.
1:07: On expanding FiOS to other markets: “The question is not if, but when. The gating factor is the lengthy process of negotiation with each municipality, but we will get through it. When we finally turn on Manhattan we will have significant upside.”
1:03: UBS analyst asks about holiday sales but then lets Strigl get away with a non-answer. Strigl: Our product lineup is “strongest we’ve ever had” with Juke, Pearl, Voyager. “Our stores are busy.” Great, thanks.
1:02: Do you expect competitors to follow (and open up their networks)? Says he can’t predict what they will do, but if they study it, as VZ did for 18 months, they will probably arrive at the same conclusion.
12:56: First question on Verizon’s open access plan, and support of Google’s Android… Strigl says Verizon will support Android with its open access model. He says opening the network “will be a phenomenal new source of revenue for us.” Think of new applications we can’t think of on our own. It’s open application for others to develop apps and expand revenue, and for Verizon to do the same.
12:53: Strigl says Verizon can both cut costs and provide better customer service. This means asking customers to do more self-guided troubleshooting online, paperless billing, better web sites. Also, no doubt, harder/impossible to get a real person on the phone.
12:48: 1.3 million FiOS data customers (20% penetration) and 700k FiOS video subscribers (15% penetration). Says FiOS to be EBITDA positive in 2008, and operating income positive in 2009.
12:42: Strigl on opening the Verizon network: “Our decision to open the network to all devices and software gives customers the option to bring own device and run their own applications. It presents huge opportunity to increase customers and number of devices that connect to network as it evolves to a G4 network. It will usher in new era of connected devices. The result will be more differentiated value proposition and much lower cost of customer acquisition.”
12:39: On wireless business: Priority is to sustain performance and differentiate around superior network and products. Will focus on retail customer with new devices, flexible price plans, new bundles with wireline service, more data features
12:32. Talk commences. Strigl says will talk about how Verizon will measure success on going-forward basis. Verizon will participate in the FCC’s 700 mhz auction in January, but he’s barred from discussing that further.
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