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Volume 28 / No. 039
Verizon CFO: Owning Linear TV Content Not Necessary
Just because its rival AT&T is buying Time Warner doesn't mean Verizon will do the same. At least not in the near term.
Reiterating CEO Lowell McAdam's recent comments, Verizon CFO Matt Ellis said " we don't believe that we need to own
the traditional linear TV content. " Speaking at the Morgan Stanley Technology, Media & Telecom Conference Tuesday, Ellis
said AT&T's pending merger doesn't change Verizon's content strategy. " It's important to us that we have mobile digital
rights to some of the content that we think will be important in a mobile bundle, " the CFO said. The telco's mobile streaming
service go90 features millennial-targeted content and the company is looking to step up its online presence with its
Yahoo purchase. Yahoo shareholders still have to vote to approve the transaction. More mobile content is coming as Verizon
readies to launch ixed 5G wireless services, capable of delivering gigabit speeds. The company is testing the service
in 11 locations with different consumption needs. Commercial launch is expected next year, according to Ellis. The plan is
to offer 5G service outside Verizon's service footprint, he said. Verizon recently re-entered the unlimited game, which AT&T
followed with its own unlimited offering. Ellis said the company evaluated its network prior to the launch to ensure it could
support unlimited usage. " If we would do unlimited [service], we couldn't do it at the expense of network performance, " he
said. It's a little early to talk about responses but the company has seen what it expected to see with the launch, he said.
" We are seeing a nice uptick. " Verizon has a MVNO arrangement with Comcast, which the MSO activated. Comcast
plans to launch wireless service as part of a bundle by mid-year this year. " The product itself is going to save you money
by taking our bundle...We're going to sell more products, not including wireless, but broadband, as a result of this offering, "
Comcast CEO Brian Roberts said during the same conference late Monday. Ellis said Verizon is happy with the arrangement
and " we look forward to them launching those products. " Meanwhile, there's a convergence of wireless and home
broadband and 5G will play an important part of that. The convergence is necessary as connected homes continue to
evolve. " We're getting ready for a day when you have a smart music system, a smart refrigerator, smart devices and they
all just work in their home. Hopefully, the bits per home continue to rise and the company with the best network, deined
as wired and wireless, will have a real advantage, " Roberts said.
YouTube TV: YouTube's announcement on Tues that it will launch a live streaming app at some point this year is only the
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Cablefax The Magazine - March 2017

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