Summary
1. Back in early 2007, we indicated that there was a stronger possibility of Verizon selling off its properties in Pittsburgh. 2. The advantages are clear in including the NFL city in a package. 3. However, if Verizon is forced to make substantial investments in Pittsburgh, it is not out of the question that it would keep the lines there.
Analysis
Verizon could find a means of connecting the metro with its concentrated FiOS build-outs along the I-95 corridor. Nevertheless, a key advantage in selling off a large city like Pittsburgh would be to make a deal much more attractive to telcos interested in the western Pennsylvania assets. In addition, the Buffalo area has received some FTTH installations from Verizon and it is definitely up for sale. Certainly, the deployment of fiber makes these NFL cities even more appealing to potential purchasers.
It is probably no coincidence that it took “about 15 months of negotiations” with the City Council. The RBOC was doing its best to drag its feet. It also has a lot of breathing room. Verizon could unload Pittsburgh before it is required to “provide high-speed Internet, phone and cable TV access to at least half of the city's households within three years,” let alone “for all households within six years.”
