& 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   >   >>
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.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
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 Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
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.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Comcast Will Go Wireless in 2017
Mari Silbey, Senior Editor, Cable/Video, 9/20/2016
Sprint CEO: We'll Lease Spectrum as Soon as Possible
Dan Jones, Mobile Editor, 9/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
You Thought Your Customer Service Was Unreliable... Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.