Verizon CEO exiting one dying business for another

The NY Times reports that Verizon CEO Ivan Seidenberg has finally accepted that his landline business is going to keep sliding:

Mr. Seidenberg said that his “thinking has matured” and that trying to predict when the company would stop losing voice landlines “is like the dog chasing the bus.”

This is being touted as the most progressive thing anyone has ever heard (which might be true, coming from a telecom exec), but the irony is this:

“Video is going to be the core product in the fixed-line business,” Mr. Seidenberg declared. And the focus will move from selling bundles of video and landline to video and cellphones, he added.

That’s freaking hilarious. Verizon thinks video will replace all their landline revenue losses. They are jumping into Video just as it is approaching its end of life, or the beginning of the end anyway. People are starting to “cut their video cord” just as they began cutting their landline cord a few years ago.

My son’s dorm room at college includes a landline phone, Internet, and a cable TV connection. They actually have a phone plugged into the landline (probably mostly to talk to the school’s internal numbers, like the I.T. dept to keep the Internet working). They do not have a TV and don’t have anything connected to the CATV wall jack – and they don’t seem to miss it much.

Over the years to come, there will be as many people dropping Verizon’s video service as there are people dropping landlines today.  So this seemingly “progressive” view is sort of like saying we’re finally abandoning Betamax and embracing HD DVD!

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