& cplSiteName &

FiOS: Slower Sub Growth, Faster Upload Speeds

Alan Breznick

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   >   >>
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.

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
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?
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. 
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.


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
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?"
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!
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.
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   >   >>
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments

Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment

As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments

Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments

VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments

Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments

In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments

Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments

How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments

Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments

In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments

Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments

CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
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
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Are IP/Optical Integration Initiatives Moving to Silos?
Faisal Khan, Network Operator Technology Planning Dept., 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
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.