A huge cost for vz in the vbg group is the 3rd party last mile providers. Vz doesn’t seem to negotiate great rates with comcast, tw, att etc. . we lose customers because our prices are too high. When the circuit goes down it’s usually due a last mile provider issue. Cost of all the offshore people needed in repair is a drag on vz financials. With Vz only focused on products with margin, Could they sell off this group or just continue to make deep cuts )let customers go elsewhere) and shrink the business unit?
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@3yej+1khaG9BR Did not know that - would probably help if they got involved again!
I know WINDSTREAM was discounting 30% for 5 year contracts (maybe that’s why they went bankrupt, but hey, now their board is made up of members from their largest creditors, and their CFO became their CEO!
The problem is because finance does not lease using optimal purchasing terms from the vendors. They use 3-year terms instead of portable 5-year terms, causing a 5% on average higher rates. In addition, they are unable to negotiate or implement deal specific discounts so other competitors use better procurement policies than Verizon. When Federal worked with carrier management 10 years ago the systems allowed for both and won many bids.
And when we lose the out of footprint business that we lease lines for I wonder how very slow we are to get rid of said leased lines if we even do
Vz adds a nice % to the 3rd party last mile provider access/ott in non vz footprint but the overall rates are not competitive internet circuit business is lost to att, lumen and so on. Internet circuit revenue in non vz footprint is definitely not growing. Vz wants margin but customer have other options. Vz voip is a lot of work relative for little revenue anymore and many customers are getting rid of desk phones.
Revenue would actually decline if VZ abandoned out-of-footprint (called OTT or Over The Top) internet and enterprise VoIP services. You’d have worse quarters and worse bonuses.