& cplSiteName &

FiOS: Slower Sub Growth, Faster Upload Speeds

Alan Breznick
7/22/2014
50%
50%

While it continues to make market inroads against cable and satellite TV providers, FiOS's growth rate is definitely slowing down as the Verizon fiber-to-the-premises (FTTP) platform runs out of room to run.

Verizon Communications Inc. (NYSE: VZ) reported Tuesday morning that FiOS added fewer TV and Internet subscribers in the second quarter ending June 30 than it did a year ago, continuing a recent pattern as it reaches the limit of its FTTP network buildout. FiOS also added substantially fewer digital voice customers in the spring.

Specifically, Verizon reported that FiOS picked up 100,000 video subscribers in the second quarter, down from 140,000 a year ago. Still, the telco now has 5.4 million pay-TV subscribers, more than all US cable operators except Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC).

Similarly, on the broadband side, Verizon said FiOS netted 139,000 new broadband subscribers, down from 161,000 a year earlier. Nevertheless, due to these gains, Verizon now has 6.3 million FiOS Internet subscribers and 9.1 million overall broadband subscribers, more than nearly all US MSOs again.

With the all-fiber FiOS network now passing 19.3 million homes and small businesses, Verizon executives maintain that they still have some room to grow. But, with FiOS Video's penetration rate now at 35.3% of homes marketed and FiOS Internet's penetration rate at 40.1% of homes marketed, it's getting harder to see where that growth will come from.

Seeking to seize the competitive broadband edge from cable operators, Verizon announced Monday that it's upgrading FiOS's upstream capacity to deliver much faster upload speeds on all of its Internet tiers. Under this program, FiOS will offer symmetrical upload and download speeds on every broadband tier, including up to 500 Mbit/s on its fastest Quantum tier, by the end of the year. That makes Verizon the first US broadband provider to take that step. (See Verizon FiOS Boosts Upload Speeds .)

Verizon executives said they're making this move because of internal projections that upload activity on the FiOS network will double by late 2016. They also cited a recent IDC study that more than 20% of US broadband households are now "power users," uploading nearly as much content as they download. IBC projects that the number of power users will rise by 60% by 2017.

The across-the-board FiOS upstream increases will undoubtedly put more pressure on cable operators to do the same. Although US MSOs like Comcast, Time Warner Cable, and Cox Communications Inc. have matched or come close to matching FiOS's speed increases on the downstream side through the use of DOCSIS 3.0 technology and fiber-fed lines, they are more constrained on the upstream side until the next-generation DOCSIS 3.1 standard gets deployed.


Want to know more about DOCSIS 3.1 and other cable next-gen technologies? Check out this coverage of our Cable Next-Gen Technologies & Strategies event last March.


On the video side, Verizon is seeking to re-stoke FiOS's growth momentum by pumping up FiOS Quantum TV, a whole-home HD-DVR service that provides six tuners and 1 terabyte of DVR storage. In its latest promotion, FiOS is now offering free Quantum TV-enhanced service for 24 months to new triple-play customers who sign up by September 20.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(12)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 9:50:26 PM
Re: Cut the price
Yes and with the increasing use of legal streaming services for movies and music and even live broadcasts, I have to wonder if illegal torrenting would go on a long term decline.


jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 9:45:02 PM
Re: Cut the price
Very good point!

You'd have to show that there are key "performers" who can bring in more hits, on average, than what randomly waiting around for the next "Baby Pours Mush on Head" or Rebecca Black fluke would.

Then there's the matter of firsthand news.   Does it attract responses?   And at what cost compared to the endless series of Feeds that simply publish the same story as each other?

I'm reaching here, as you can see ...  
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
7/22/2014 | 8:33:13 PM
Re: Cut the price
What's the incentive for companies to pay people to contribute to social media when people are wiling to do it for free?
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
7/22/2014 | 5:51:13 PM
Re: Cut the price
I would like to know just what that 20% is uploading - that seems like a lot of data going back and forth. 

Perhaps its torrents - but I would be surprised to know that one-fifth of subscribers are doing that. Of course, I could be underestimating how many people are using peer to peer network that hog so much bandwidth. 
brookseven
100%
0%
brookseven,
User Rank: Light Sabre
7/22/2014 | 3:57:33 PM
Re: Cut the price
So, do you see Cable dropping their price?

I see Cable doing the same thing as Verizon.  Only low speed DSL is close to being a low cost product.

Verizon and the MSOs are working on the put in more and slowly raise prices model.

The competition doesn't exist.  The bad news is that it if did exist they would just lower their prices and drive the new player out.  Note Google is studiously avoiding FiOS ciites.

seven

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 1:55:50 PM
Re: Cut the price
Lots of different kinds of jobs.  For example, Social Media Jouralists.  People paid to roam around with a tablet and video, record and write down their observations in posts.   The whole vast hierarchy of publishing that was destroyed by the Internet could make a comeback.  

The missing component has always been...Monetization.   Facebook is one example of how the Internet creation content has been privatized (the Post replaces the Web page).    This provides the kind of base that can start to reward people who contribute with incomes in return for the types of infotainment that keep people glued to their tablets.

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
7/22/2014 | 1:50:58 PM
Re: Cut the price
Okay, so when I saw "more of these fees going to content creators," I have to admit, my knee jerk reaction was that content is too costly as it is. 

But you are not talking about the traditional content creators, right? What kind of compensation do you expect or want to see for the "great number of laborers who contribute to social media?"
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 1:49:01 PM
Re: Cut the price
Well it comes down to the math.

Obviously just cutting the price for existing customers loses them money, but if it gains that many more customers, and they expect to increase it slightly in the future, and perhaps get into the content creation business then overall it might be worth their while.

Like with broadcasting, the addition of each new customer -- assuming they don't live out in the sticks -- will be very minimal.   I mean, for the cost of running a wire you get $55 a month?  Geeze!  I need a business like that!
alrefaee1
50%
50%
alrefaee1,
User Rank: Light Beer
7/22/2014 | 1:39:19 PM
Re: Cut the price
I would love to see VZ cut the price and willing to clamor/slam my fist on the table for that. As consumers though, we have no leverage. The real question is why would they? What incentive do they have? They've probably measured price elasticity vs subscriber growth and they likely know that dropping the price, unless it's significant, won't maximize profits, maybe not even revenue. It will only likely add more cost (bandwdith, interconnect, support, capital intensity, etc...). A great recommendation and wish; not likely to happen anytime soon.
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 1:37:25 PM
Re: Cut the price
Well, with my Android phone and Google+, I now see that every photo and video I make are auto-uploaded to the Cloud, so I should be thankful for faster uploads and it "clears the road" for consuming download.

I'm also not against putting more money into the hands of The Internet in general because I think we are getting very good content for the price, but I'd like to see more of these fees going to content creators rather than just operations.   Netflix is leading the way with original programming, but at some point, we have to move capital and income to the great number of laborers who contribute to social media which in turn draws customers into using that same media.

 
Page 1 / 2   >   >>
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
LRTV Documentaries
OPNFV Summit: Key Takeaways

6|22|16   |   03:28   |   (0) comments


MANO shortfalls, an increasingly bloated open source ecosystem and the cultural challenges for network operators were among the key takeaways from the OPNFV Summit in Berlin.
LRTV Huawei Video Resource Center
Bringing Ultra Broadband to the South Pacific

6|22|16   |   7:55   |   (0) comments


At Singapore's UBBS 2016 summit, Light Reading speaks to Lim Chee Siong, Huawei's CMO in the South Pacific Region.
LRTV Custom TV
Juniper's NFV Platform

6|22|16   |     |   (0) comments


A telco cloud is a key enabler for service providers to deliver virtualized services to their customers. Juniper has a differentiated approach with an open and comprehensive NFV platform to build the cloud of the future for multiple use cases.
Women in Comms Introduction Videos
Infinera: The Glass Ceiling's Been Broken

6|22|16   |   4:34   |   (0) comments


Shannon Williams, an engineer by trade and now the director of sales for Infinera's major accounts, draws confidence from being a female in a male-dominated industry and hopes other women will too as industry dynamics swing in our favor.
LRTV Custom TV
RAD Demonstrates SD-WAN Functionality at BCE 2016

6|22|16   |     |   (0) comments


In conjunction with Versa Networks, RAD demos a joint solution for SD-WAN implementation. The solution uses RAD's ETX-2i, a vCPE platform integrating a powerful IP and Carrier Ethernet NID/NTU with a field-pluggable x86 NFV module that runs Versa's FlexVNF for SD-WAN functionality. The demo implements SD-WAN over a simulated service provider footprint by deploying ...
LRTV Custom TV
Radware on Virtualizing Network Security

6|21|16   |     |   (0) comments


Radware's Michael O'Malley highlights the benefits for service providers of virtualizing network security.
LRTV Huawei Video Resource Center
Huawei 2016 UBBS World Tour: Singapore

6|21|16   |   02:39   |   (0) comments


Highlights from Huawei's UBBS World Tour event in Singapore.
LRTV Custom TV
The FlowBROKER Solution

6|21|16   |     |   (0) comments


During a demo at the Big Communications Event 2016, Accedian director of product line solutions Greg Spear demonstrates how the FlowBROKER distributed packet capture solution (part of Accedian's SkyLIGHT platform) can be used to troubleshoot and resolve QoE issues.

FlowBROKER is the industry's first lossless remote packet capture solution, which uses ...

LRTV Documentaries
BCE 2016: Dell & the New World Order

6|21|16   |   22:48   |   (0) comments


Dell's Jim Ganthier on how the very essence of enterprise is being affected by digital disruption – and how the cloud can help companies find a path forward.
LRTV Documentaries
BCE 2016: The CSP of the Future

6|20|16   |     |   (0) comments


Traditional telecom operators have been adopting new ways of doing business from the IT sector and emulating web-scale companies in their technology adoption. Are these strategies succeeding? A panel of experts at BCE considered the evidence...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
FCC to Vote on 5G Spectrum on July 14
Dan Jones, Mobile Editor, 6/20/2016
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
Twitter Buys Magic Pony... Not That Kind
Mari Silbey, Senior Editor, Cable/Video, 6/20/2016
AT&T Settles on LTE for Cellular IoT
Dan Jones, Mobile Editor, 6/22/2016
Google Fiber Buys Webpass in Wireless Play
Iain Morris, News Editor, 6/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Mark Dzuban, president and CEO of SCTE/ISBE, sits down with Steve Saunders in Light Reading's New York office to discuss the society's Energy 2020 campaign, including its mission to benefit the environment, enable economic benefits and the key challenges facing cable operators wanting to reduce energy consumption.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.