Verizon Communications Inc. (NYSE:VZ) To Shift From Copper Lines To Fiber As It Expands To More Areas

892
Verizon Communications Inc. (NYSE:VZ)

Verizon Communications Inc. (NYSE:VZ) has plans to do away with the use of copper phone lines, and it will switch to fiber cables.

Click Here For More Market Exclusive Updates & Analysis

Documents provided by the Philadelphia Inquirer indicate that the company’s policy called “Fiber is the Only Fix” will force users to switch to a fiber optic service. It means that the company’s technicians will recommend the only solution to fixing copper cables in areas where the firm has a fiber network will be the installation of fiber cables. This remedy is designed to force people who still rely on copper cable phones to upgrade to fiber connections which are a better alternative.

Those who will not be willing to make the jump to fiber will not receive any help. In short Verizon’s decision on the matter is not to repair damaged copper cables. The company has also announced plans to expand the Fios fiber-optic network to more areas with Boston on top of the list. Verizon has already launched Fios in most of the towns that are close to Boston. The company started construction of the Fios network about ten years ago with the aim of connecting as many homes as possible. The network cost the company more than $23 billion, and it exists in more than 12 states.

Verizon was previously not able to secure a deal with Boston until now, and the new deal has a lot of similarities with Google Fiber from Alphabet Inc (NASDAQ:GOOGL). The latter pays special attention to areas where it has been requested by many people instead of introducing the service to the entire city. Verizon claims that it will set aside more than $300 million which will be pumped into the project over a period of six years. The company plans to launch the project this summer, and it will expand throughout the city over time.

The project is good news for the telecommunications firm but in other news, Verizon workers in two unions have plans to launch a go-slow against the firm. The 40,000 employees in the unions will strike on Wednesday morning because the company has not renewed their union contract since August.

An ad to help with our costs