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Summary:

If recent comments by CEO Ivan Seidenberg are any indication, Verizon Communications isn’t making retrenchment plans.

As the economic crisis continues to wend its way through world markets, telecom companies such as Qwest have begun putting the brakes on some of their growth initiatives. But if recent comments by CEO Ivan Seidenberg are any indication, Verizon Communications isn’t making retrenchment plans. Speaking at the Dow Jones-Nielsen Media and Money conference earlier this week, Seidenberg reportedly told the crowd that Verizon wasn’t worried about the fluctuating stock market and was going ahead with its previously announced plans. According to Deal Journal, he said:

“We have to retool the work force. We’re not going to do it by hunkering down. We’re going to do it by reinvesting…we can’t allow this period in which we feel bad about dislocations to take away from what America should be doing, which is creating competitive edge. If we ever lose our nerve to continue to take risk, then we’re in a lot of trouble.”

So bring on the fiber and bring on Alltel! Seidenberg is pressing the FCC to approve Verizon’s proposed $28.1 billion buy of the cell phone maker service provider that will require the company to take on $22.2 billion of Alltell’s debt and refinance another $7.7 billion coming due this year. The FCC is expected to vote on the merger at its Nov. 4 public meeting. As for fiber, Verizon’s still pushing FiOS to new markets as part of its $18 billion plan to offer fiber to the home. Seidenberg may be content to take risks despite the stock market’s gyrations, but given the debt Verizon will need to take on, I think he might be wearing rose-colored glasses.

  1. Alltel is a mobile phone service, not a cell phone maker.

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  2. Carolyn Pritchard Thursday, October 16, 2008

    @jk: That’s been fixed, thanks.

    best, Carolyn

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  3. He needs to reinvest in their customer service…it is absolutely brutal. He s/b made to call one of their 800#s for service, spend 10 minutes weeding through the IVR, then transferred 3x before he gets hung up on.

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  4. I can see why Verizon is continuing to push there Fios, it ROCKS!!! I got the service a few months ago and the picture quality blows away what the cable companies have to offer. I LOVE MY FIOS!!! Keep it up Verizon.

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  5. Stacey Higginbotham Thursday, October 16, 2008

    Parkite, I’ve had to call VZ customer service on several occasions. I always brace for the worst, but I’ve never actually had a problem getting my issue solved, or waited long on hold (maybe 2 minutes) to get it solved. I may be the only person in the world with such luck, but I actually think the customer service at VZ is pretty good.

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  6. [...] According to Akamai data, the average global broadband speed in the last three months of 2008 was 1.5 Mbps, though South Korea had an average speed of 15 Mbps. The U.S. came in at No. 17 with an average speed of 3.9 Mbps, though I’m sure that’s going to change in coming years with the wide-scale adoption of DOCSIS 3.0-based broadband from Comcast and fiber offerings such as Verizon FiOS. [...]

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  7. [...] the wireline side, Verizon’s investments in laying fiber to the home for its FiOS product are resulting in a 13.7 percent increase in average revenue per user, and the [...]

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