Verizon

I had the opportunity to go to the Supreme Court to watch the oral arguments in a case called United States v. Carpenter. Carpenter deals with what standard law enforcement must meet to obtain cell site location information from a wireless carrier, which fundamentally is about the appropriate balance between privacy and security. This is an issue of great interest to Verizon.  Verizon joined an amicus brief in the case this summer, and we will host an event in Washington, DC to discuss it in more detail in the new year. 

Verizon Communications announced it has completed the $1.8 billion purchase of XO Communications’ fiber-optic network business. Verizon’s purchase and integration of XO’s fiber network will help the company extend its suite of high-quality network services to its enterprise and wholesale customers. In addition, it will help the company in its plans to densify its cellular network, and to deploy new 5G technologies.

Integration of all XO operations and facilities is expected to commence immediately. The company expects to achieve significant synergies by incorporating XO’s fiber assets as part of its current network operations. Verizon anticipates the transaction will deliver in excess of $1.5 billion in operating and expense savings in net present value. In addition to the fiber transaction, Verizon has entered into an agreement to lease certain wireless spectrum from former XO affiliate NextLink Wireless. Verizon has an option, exercisable under certain circumstances, to buy NextLink.

As 2016 comes to a close, this is a time of both reflection and looking ahead. At Verizon, we could not be prouder of the work our dedicated teams have accomplished over the past 12 months to improve our customers’ experience. From introducing new services like LTE Advanced on our next gen network, to providing more mobile content to our customers with go90, to expanding Verizon’s position in exciting new technologies such as 5G, the Internet of Things, telematics and smart communities; it’s been an exciting year.

The next Congress and incoming Administration have an opportunity to modernize the nation’s antiquated communications laws in ways that will better protect consumers, foster innovation and encourage market competition across the Internet ecosystem. Today’s rigid laws and regulations built around legacy services must give way to new, more flexible approaches that are more aligned to the realities of the converged digital marketplace. Rather than relying on outdated technology-specific regulations, we need a modernized legal framework with broad parameters that is tailored to promote competition and protect consumers in today’s ever-changing environment.

Verizon Communications announced it has entered into a definitive agreement to sell 24 data center sites to Equinix, Inc in a transaction valued at approximately $3.6 billion. Equinix will own and manage 24 Verizon customer-facing data sites, consisting of 29 data center buildings, in the United States and Latin America. The transaction is expected to close by mid-2017. This transaction aligns with Verizon’s strategy to focus resources in areas that will help drive digital transformation for enterprise customers, while providing world-class service. The sale does not affect Verizon’s managed hosting and cloud offerings, or its data center services delivered from 27 sites in Europe, Asia-Pacific and Canada.

Earlier this summer, Verizon hosted a mobile technology training session for local senior citizens in Washington DC. There, I saw first-hand the promise that mobile technology holds for seniors. From staying connected with their families, to accessing community resources, senior citizens represent a significant (and growing) portion of the “mobile-first” generation.

At a more recent class held in September at the Knollwood Military Retirement Residence in Northwest DC, I spoke with several participants to understand how, in their own words, their smartphones and tablets are enriching their lives. Dr. Jerry Earll, a retired physician who practiced internal medicine and geriatrics, spoke about the ways mobile technology has changed medicine for both patients and practitioners. “Technology offers real-time updates and helps to expand differential diagnoses for a particular group of symptoms. You can determine the side effects of pharmaceuticals instantaneously. It also empowers patients to take preventive measures to protect their health.”

In the context of network interconnection, communications policymakers have the benefit of a real-world experiment with two very different approaches to interconnection, which have existed in parallel for decades.

One model is the proscriptive regulatory approach that governs traditional voice communications. The other is the IP interconnection model in which commercial negotiations have created a flexible, adaptable network ecosystem that has seen unprecedented innovation and investment. This voluntary, commercial interconnection model has been nothing short of a tremendous success.

In the IP interconnection model, each service provider negotiates an agreement with several other providers, the terms of which vary according to the networks’ needs. Because there are multiple paths (aside from direct interconnection) available for any one provider to reach another, there are no compulsory agreements and each party is assumed to receive equitable value from an agreement to connect. IP interconnection has allowed for innovation and flexibility in response to changes in end users’ demands.

Recently, Level 3 decided to call attention to their congested links into Verizon’s network. Unfortunately, they are now the one “trying to get a free ride on someone else’s network” and failing to “keep the interest of their customers paramount.”

Fortunately, Verizon and Netflix have found a way to avoid the congestion problems that Level 3 is creating by its refusal to find “alternative commercial terms.” We are working diligently on directly connecting Netflix content servers into Verizon’s network so that we both can keep the interests of our mutual customers paramount.