AT&T CEO Randall Stephenson has called upon the FCC to hasten its review of the carrier’s bid to retire its PSTN and move to all-wireless networks for consumers, which would do away with traditional public phone lines. The carrier also wants to move its networks from what it call expensive data centers to a more efficient cloud-based design, reports ComputerWorld.
Stephenson, at a Goldman Sachs conference said, “there’s no guidance on how to move the industry from an old, archaic technology to a modern technology.”
Stephenson said that he’s encouraged that incoming FCC Chairman Tom Wheeler “knows how fast [the wireless industry] moves …and knows that regulations can actually slow the rate.”
AT&T said on Monday that it will launch its own fiber-powered, super-fast home Internet service on December 1 in Austin, a city that Google has said it would deploy its own speedy Google Fiber service. It would start with speeds of 300 megabit per second, before upgrading customers to 1 gigabit per second next year.
In the first six months of this year, Verizon’s nonwireless business made only $87 million in operating profit, reports the NY Times. That’s paltry compared with the business’s roughly $20 billion in sales.
As of September 2013, Verizon FiOS, their fiber initiative was available in 16 states. Verizon has passed 18 million homes with 5 million customers, but is now winding down their FiOS expansion. Much of Verizon’s FiOS unit was sold to Frontier Communications.
In the first 6 months of the year, Verizon Wireless brought in roughly twice as much revenue as their landline business, but it made close to $13 billion in operating profit.
Wireless service is much more profitable than landline service. That’s partly because landline service has been regulated since 1913, while the wireless business generally has not.
By eliminating regulations – and the landline competition – carriers now stand to make a killing. Tom Wheeler may be the carrier’s best friend.