Light Reading

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   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?