GNG News Guy
03-03-2008, 02:40 PM
http://i.dslr.net/urls/62/4062.gif (http://www.dslreports.com/shownews/Embarq-Also-Doesnt-See-Business-Case-For-FiOS-92333)
With former Embarq CEO Dan Hesse now trying to revitalize Sprint (http://www.thegng.org/shownews/92259), Sprint spinoff Embarq promoted their top lawyer, Tom Gerke, to the role of CEO. Gerke had taken over as interim CEO with Hesse's departure, and the company apparently liked what they saw. Like Qwest (http://www.thegng.org/shownews/92195) last week, the new boss starts things off by saying he doesn't see the business sense (http://telephonyonline.com/independent/news/embarq-gerke-ceo-0303/) in the kind of money Verizon is spending to upgrade their network to fiber (that's code for they aren't seeing enough competition, don't have that kind of money, and their timid investors wouldn't want to spend it anyway):"We haven t seen a business case that justifies some of the investments that Verizon and AT&T have made because of the geography and our particular markets, he said. We re offering 10-Meg service, and we continue to make sure we have the bandwidth that is necessary for HSI high-speed Internet . We also see a lot of non-linear entertainment coming in the future. We have our new portal we migrated to that includes our video store with 5000 movies, 5000 music videos and 1000 television episodes that our customers can pull down over the 10-Meg pipe. There is a newer generation of customers that wants to see something when they want to see it.
Like Qwest, Embarq might be making the right decision to stay out of the TV business if broadband video delivery makes CableTV in 2012 look like the copper phone lines of 2008. However, they may find cable competitors eating their lunch if they stick with milking copper via ADSL2+.
read comment(s) (http://www.dslreports.com/shownews/Embarq-Also-Doesnt-See-Business-Case-For-FiOS-92333)
With former Embarq CEO Dan Hesse now trying to revitalize Sprint (http://www.thegng.org/shownews/92259), Sprint spinoff Embarq promoted their top lawyer, Tom Gerke, to the role of CEO. Gerke had taken over as interim CEO with Hesse's departure, and the company apparently liked what they saw. Like Qwest (http://www.thegng.org/shownews/92195) last week, the new boss starts things off by saying he doesn't see the business sense (http://telephonyonline.com/independent/news/embarq-gerke-ceo-0303/) in the kind of money Verizon is spending to upgrade their network to fiber (that's code for they aren't seeing enough competition, don't have that kind of money, and their timid investors wouldn't want to spend it anyway):"We haven t seen a business case that justifies some of the investments that Verizon and AT&T have made because of the geography and our particular markets, he said. We re offering 10-Meg service, and we continue to make sure we have the bandwidth that is necessary for HSI high-speed Internet . We also see a lot of non-linear entertainment coming in the future. We have our new portal we migrated to that includes our video store with 5000 movies, 5000 music videos and 1000 television episodes that our customers can pull down over the 10-Meg pipe. There is a newer generation of customers that wants to see something when they want to see it.
Like Qwest, Embarq might be making the right decision to stay out of the TV business if broadband video delivery makes CableTV in 2012 look like the copper phone lines of 2008. However, they may find cable competitors eating their lunch if they stick with milking copper via ADSL2+.
read comment(s) (http://www.dslreports.com/shownews/Embarq-Also-Doesnt-See-Business-Case-For-FiOS-92333)