Verizon's Exit

The writing has been on the wall.  In 2010, Verizon sold its wireline assets in 14 states to Frontier Communications.  Last week, it announced an agreement with Frontier to sell its wireline assets in 3 additional states (California, Florida, and Texas).  While it will maintain its presence in 9 northeastern states and the District of Columbia, is this only temporary?  Over the past few years, Verizon has scaled back its fiber build and focused most of its resources on mobile.  With the Frontier sale, Verizon will shed 31% and 21% of its FIOS internet and video customers, respectively.  In wireline telecom and broadband, has the regulatory oversight and its related costs become too much for Verizon? 

As it moves closer to “the exit”, what does it mean to the customers it leaves behind?  What does it mean for wireline broadband competition?  The simple answer to both questions…it’s not good.