Verizon is selling 5 million access lines to Frontier. I expect the deal will go through — after all, a dominant carrier is getting smaller, there is no place where VZ and Frontier compete, etc., etc. What makes the deal interesting is what it tells us about the problem of relying on ILEC/Cable competition to drive broadband. Briefly, (a) we will be perpetually without fiber in a lot of places if we are going to wait for cable and ILECs to meet our needs; and (b) the real problem for is not just the high cost of deployment, but the need to show high rates of return to keep Wall St. happy. It is this latter that will keep telecom policy a very unhappy and complicated place unless we get out of our usual silos and start thinking about some holistic solutions.
More below . . . .