Ged Carroll @r_c

Seidenberg’s Folly?

Published: (Updated: ) in 传播媒体 | media | 미디어, 创造力 | innovation | 독창성, 商业 | business | 상업, 工艺学 | technology | 기술, 无线网络 | wireless |무선 네트워크, 电信 | telecoms | 통신, 经济 | economics | 경제학 by .

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Who is Ivan Seidenberg?

Ivan Seidenberg is head of Verizon, a U.S. telecoms company based in New Jersey, they jointly own one of the U.S.’s largest mobile phone operators with Vodafone and are provide landlines to Americans living on the eastern seaboard. They are a direct descendant of the Bell Telephone Co. a former telecoms monopoly rather like BT prior to privatisation. Verizon was one of the baby Bells made by the break-up of the previous company. It was originally called Bell Atlantic but has grown beyond its roots by acquisition and joint venture.

What is a folly?

A folly is the ruins of a great accomplishment that never gets finished. The English landscape is dotted with disused and crumbling monuments. Many of the follies were made by industrialists who spent the wealth generated by textiles mills, shipyards and heavy industries. A more modern day version of this would be the expensive shower curtains purchased by L. Dennis Kozlowski during the recent Tyco scandal in the U.S.

What’s the SP?

In January, at the Consumer Electronics Show in Las Vegas, Seidenberg laid out a plan to spend two billion dollars digging up and replacing the copper cables that lie between the customers house and the telephone exchange, replacing it with strands of glass called optical fibre.

This is interesting because:

Verizon until now has been very focused on creating shareholder value, broadly that means working the business in such a way that they keep paying a dividend and the share price keeps going up. In order to do that you need to avoid ‘bet the farm’ type moves, or anything that may unsettle institutional shareholders. One of my frustrations working as a PR consultant agency-side with Bell Atlantic mobile (a predecessor of Verizon) was trying to get my spokespeople to say anything daring, visionary or forward-thinking. We struggled to send out news, even issuing European  press releases about mobile phones donated to battered wives shelters in New Jersey

If Verizon are successful, it may encourage other telcos to do the same thing, they may not be so lucky….

Seidenberg and the False Prophet

Seidenberg’s bet reminds me of George Gilder a strange mix of techno sage and right-wing evangelist that America is good at putting out. He foresaw a golden age for the information economy brought about by photonics and charged many business executives a whole pile of money for a newsletter about companies that he felt was at the vanguard of the revolution.

George’s vision hasn’t come to pass, yet Seidenberg’s plan sounds like something straight from the Gilder playbook including the lack of profit imperative.