& cplSiteName &

FiOS Turns the Screw on Cable

Mari Silbey
4/22/2013
50%
50%

U.S. cable operators take note: Verizon Communications Inc. announced gains for its FiOS broadband and video services offerings as part of its strong first-quarter results. That's noteworthy because while the cable sector suffered attrition of its video customer base during 2012, Verizon's FiOS gains have come not only from building new fiber access infrastructure in more U.S. markets but also by gaining customers in existing markets: That means Verizon is continuing to increase penetration in neighborhoods where its fiber access network is already deployed. Verizon isn't the only company pressuring the cable operators: AT&T Inc. also grew its video customer base in 2012. (See Good News/Bad News for Cable TV.) Verizon's first-quarter numbers show steady gains: Internet service penetration jumped from 37.3 percent in the fourth quarter of 2012 to 38.2 percent in the first quarter of 2013, while video service penetration jumped from 33.3 percent to 34.1 percent. Verizon gained 188,000 FiOS broadband customers, taking its total to 5.6 million, and added 166,000 video service subscribers, taking that total to 4.9 million. (See Verizon Operating Revenue Up 4.2% in 1Q13.) Now that the operator's new fiber deployments have slowed -- see FTTH Quietly Grows 10% in North America -- Verizon has to rely on improving penetration rates to increase revenues and that new focus appears to be working. Not only have FiOS revenues grown 15.1 percent year over year, but Verizon says its average monthly revenue per user for FiOS stayed above $150 during the first quarter. AT&T and Time Warner Cable Inc. will both report their first-quarter earnings later this week, while Comcast Corp., Charter Communications Inc. and Cablevision Systems Corp. will follow in early May. — Mari Silbey, Special to Light Reading Cable

(12)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/29/2013 | 1:52:31 PM
re: FiOS Turns the Screw on Cable
mmqos,

Sorry for the delay in the response, I was travelling. Verizon in 03 was run by the wireline guys. Its now run by the wireless guys. See the problem?

Also, nobody is overbuilding each other as an incumbent. Comcast is not overbuilding Charter or Cox. See the thing?

And yes, wireless is taking over the voice world. My guess would be that 25 years from now few if any folks get a land line.

seven
soldack
50%
50%
soldack,
User Rank: Light Beer
4/28/2013 | 12:33:12 PM
re: FiOS Turns the Screw on Cable
In the philly subburbs, VZ and Comcast trade 1 year specials. They are about the same price once the specials are done. Comcast will do more to keep you a customer while VZ will let you walk away rather than get aggressive to keep you. They have a disloyalty program it seems. The quality is good though. I dumped both and just use comcast for cable, and hulu, netflix, and amazon, and over the air for TV and magic jack for a home phone.
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
4/23/2013 | 10:06:41 PM
re: FiOS Turns the Screw on Cable
Seven:
Yes I understand all about the biz side of Vz but as Bob Dylan sang, the times they are a'changin' including a LOT of management and policy changes at Vz since 2003.-á
You wrote-
"The reason you don't get FiOS is that AT&T is your incumbent wireline carrier for residential service."

Yes that is the old incumbent SP paradyme but one that has been changing with cable (Comcast) now being successful offering triple play services given their (Comcast's) higher speed I'net connections at very competitive prices.-á Xlnt marketing too.-á att seems to be conceding their wireline biz as well here, with marketing focus on cellular and providing existing wireline customers declining service. -á
MMQoS
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/23/2013 | 3:28:46 PM
re: FiOS Turns the Screw on Cable
The reason you don't get FiOS is that AT&T is your incumbent wireline carrier for residential service. -áThe fiber you talk about is business/transport not residential. -áVerizon stated in 2003 (and shown no plans to alter this) that they are not planning to put in FiOS where they are not the incumbent LEC. -áIn fact, they sold some properties over time particularly more rural ones to Fairpoint and Frontier.

As to West Coast, they absolutely deployed FiOS in Orange County where they are the ILEC. -áThey deployed faster there than anywhere else...even Keller.

seven
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
4/23/2013 | 6:28:33 AM
re: FiOS Turns the Screw on Cable
Brook:
Don't understand yr comment: "Are you somewhere in rural CA? Or a VzW sub in an AT&T property?"-á No, I'm in the heart of Silicon Valley where Vz Wireline is not the incumbent even though they have a large fiber footprint via Brooks Fiber/MCI/WC, now Vz Business.-á You seem to be mixing VzW with Vz Wireline.-á As far as I know Verizon has not deployed FiOS anywhere on our west coast even though they have vocal customers asking for high speed from their acquisition of GTE.
Even Google with their ftth program don't want to offer 21st century fiber connections to our hi tech area even though the Yahoo CEO lives 3 blocks away.-á Even with VzW LTE (and I helped with that at Nortel) it is no substitute for the b/w potential of ftth and I helped develop the FiOS Multiscreen service.
My only option other than reverse is to go to my local Vz Wireless store and ask to sign up for Comcast TV because in our area, the Dish and Direct birds are so close to the horizon that my "tall trees" interfere with the signal.
MMQoS
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/23/2013 | 1:30:27 AM
re: FiOS Turns the Screw on Cable
mmqos,

You are in a Verizon property in CA without FiOS? -áHmmm....as I recall the OC was some of the fastest and largest deployments. -áAre you somewhere in rural CA? Or a VzW sub in an AT&T property?

As to Frontier, please note that Verizon upgraded equipment continuously pre-sale of properties. -áFrontier not so much. -áThe ex-VzW FiOS was a very small part of the Frontier purchase (mostly in Oregon if my memory is working properly) and Frontier did not have other indigenous video properties outside of Elk Grove.

seven
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
4/23/2013 | 12:32:08 AM
re: FiOS Turns the Screw on Cable
My question for you LR investigative people to investigate, is when do McAdam and Shamano wake up and realize that FiOS is a money maker and maybe more importantly a way to keep their existing wireline customers?-á The other question I have is when FiOS returns 100% of the profits to the company while Wireless has to be shared with Vodaphone why all of the huge emphasis on VzW?-á-á
Verizon has customers out here in California who are crying for FiOS.-á att is losing internet-á connections to Comcast because Comcast is offering higher speed and has better marketing.-á Verizon, with access via all of the MCI/Worldcom fiber they acquired out here, and some positive work with local jurisdictions, could come in and blow both of them away.
Guess as a stockholder, I'll have to find a way to address the next qtrly meeting via video.

And to sjaynes970's comment about premise equipment, having fancy HD DVR equipment is not working out here for att especially as their TV signal is not true High Definition.-á Verizon could bring in any of several DVR options and that situation could be remedied in a heart beat.-á
MMQoS
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
4/22/2013 | 8:38:34 PM
re: FiOS Turns the Screw on Cable
Since many cable companies continue to post declines in cable TV subscriptions quarter after quarter, they might think anything on the positive side is a jump!
sjaynes970
50%
50%
sjaynes970,
User Rank: Light Beer
4/22/2013 | 6:22:05 PM
re: FiOS Turns the Screw on Cable
In our market, Frontier Communications purchased the business from Verizon. -áThe-ápremises equipment for FIOS is sadly lacking compared to Cable or Satellite, especially the HD DVR equipment. -á

Sadly, Frontier has no public plans for improvement, so many of their customers are being shuffled to Dish Network as an alternative in their bundled offerings. -áDish Network is not a workable solution for everyone, due to unworkable lines-of-site for many subscribers. -áPersonally, I was fortunate in that DirecTV's satellite field-of-view -áwas sufficiently different than Dish Network's that I could use them as a provider. -áMy new "un-bundled" packages are competitive with the Frontier FIOS + Dish Network bundle, but that's a lost revenue stream for Frontier.

From what I read while formulating my new strategy for pay-TV for the next two years, I believe my story is not uncommon in Frontier's markets.

The good is Frontiers Internet connectivity via FIOS is unparalleled. -áThe Bad is they seem to be abandoning the TV part of their offering.

If Verizon is to continue the win new customer base, in the era of ever increasing use of HD content and equipment, they must maintain or exceed parity with the other service providers' on-premises equipment offerings i.e. Genie and Hopper.
msilbey
50%
50%
msilbey,
User Rank: Blogger
4/22/2013 | 5:58:22 PM
re: FiOS Turns the Screw on Cable
Mendyk- I actually hesitated over using the word "jumps" but decided in the time span of a single quarter it was valid.-á

As for penetration, Verizon describes it as actual subscribers as a percentage of potential subscribers.-á
Page 1 / 2   >   >>
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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
What WTTX Can Deliver

2|23|17   |     |   (0) comments


Mohamed Madkour explains the benefits of WTTX while Dimitris Mavrakis discusses the challenges of delivering home broadband access.
LRTV Custom TV
Huawei on Mobile Broadband

2|23|17   |     |   (0) comments


Mohamed Madkour shares his vision on MBB for the next three years.
LRTV Custom TV
Analysys Mason Talks About the Future of Digital Operations

2|23|17   |     |   (0) comments


The future of digital operations has three key aspects: 1. Highly automated operations for both service and network; 2. Highly converged BSS/OSS for business and resources; 3. Highly merged management and control for real-time cloud native operations.
LRTV Interviews
Software Trends in the Telecom Sector

2|23|17   |   03:40   |   (0) comments


Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
LRTV Custom TV
Huawei's Pre-MWC Analyst Briefing 2017 Highlights

2|22|17   |     |   (0) comments


Huawei shares its vision for this year's MWC.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
LRTV Interviews
Key Trends for Mobile Operators in Developing Markets

2|20|17   |   06:37   |   (0) comments


Ovum's Matthew Reed talks to Scott Bicheno from Telecoms.com about the challenges and opportunities facing mobile operators in the developing markets of Africa and the Middle East.
LRTV Documentaries
YouTube Takes on Facebook Live-Streaming

2|17|17   |     |   (0) comments


Popular 'YouTubers' will be the first to get the new service on their smartphones. You have been warned.
LRTV Custom TV
Open Source NFV/SDN Automation

2|17|17   |   05:54   |   (0) comments


AT&T ECOMP (Enhanced Control, Orchestration, Management and Policy) code is transitioning into the Linux Foundation for placement into open source. In this video, Carol Wilson provides an update on the maturation of open source ECOMP and meets with industry leaders from AT&T, Bell Canada, Orange, Linux Foundation and Amdocs to discuss what this means for the ...
LRTV Documentaries
Uber & NASA Collaborate on Flying Car Project

2|16|17   |     |   (0) comments


Is Uber for real? Well, it's hired NASA engineer Mark Moore to lead the project, and he wouldn't come cheap.
LRTV Documentaries
Zuckerberg Tries Out the Oculus Rift VR Glove

2|15|17   |     |   (0) comments


Facebook CEO shows off a new way to interact with the Oculus Rift virtual reality headset: an Oculus glove.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
Sarah Thomas, Director, Women in Comms, 2/21/2017
Broadband Has a Problem on the Pole
Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
Verizon to Start Fixed 5G Customer Trials in April
Dan Jones, Mobile Editor, 2/22/2017
Sprint to Go Gigabit Crazy at MWC!
Dan Jones, Mobile Editor, 2/22/2017
MANO Marriage: ECOMP, Open-O Converge as ONAP
Carol Wilson, Editor-at-large, 2/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.