SPOTLIGHT: Lehman Brothers: Verizon may want to rethink FTTH

Lehman Brothers analyst Blake Bath says Verizon should substantially scale back its fiber-to-the-home plans to a fiber-to-the-node alternative. The carrier's FTTH initiative cost the company more than $1 billion in free cash flow last year. The costs could double this year and hold steady at $1 billion to $2 billion through 2010. Since analysts think FiOS related revenue will be less than $1.5 billion by 2010, Bath argues rather convincingly the cost points don't add up. Article

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