Wireless Surge Brightens Verizon View

Home Alone

The wireless excitement aside, analysts and investors say one takeaway from the Verizon conference call is not to get excited about the so-called fiber-to-the-home plans bandied about by the Bells earlier this year.

When asked for a progress report on their presumably budding fiber strategy, Verizon CEO Ivan Seidenberg offered no time or dollar commitment. Instead, he said the plans are continuing. "Our will to move ahead shouldn't be questioned," said Seidenberg.

But of course, observers are questioning just that.

Earlier this year, in a blatant attempt to demonstrate to regulators that the Bells had competitive fire, Verizon, SBC (SBC Quote) and BellSouth (BLS Quote) asked fiber-optic suppliers to bid for last-mile upgrade contracts. The bids are due this month, and Seidenberg says he was interested to see what the suppliers present.

"This is the most important decision they will make for the next 100 years," says Wilson. "Sure they want to hear from the suppliers. They'll probably pick out a few things they like and put it out for bid again."

But the fiber strategy was primarily intended to sway regulators toward a favorable ruling on industry prices. As it turned out, the regulators weren't swayed -- so fiber to the home will likely live on as a topic, but without any immediate buying decisions.

Investors had bid up fiber-optic shops like JDS Uniphase (JDSU Quote) and Corning (GLW Quote) in anticipation of good news from the Bells. Corning was down 13 cents to $9.57 in midday trading, and JDS was up 5 cents, or 1%, to $4.05.