& cplSiteName &

Verizon FiOS Slows Down Again

Alan Breznick
4/24/2014
50%
50%

In a sign that its FiOS platform may have saturated the market, Verizon Communications Inc. (NYSE: VZ) reported Thursday that it signed up far fewer new video and broadband subscribers in the first quarter. Verizon also signed up significantly fewer TV and data customers for FiOS than AT&T Inc. (NYSE: T) did for its similar U-verse suite of services. (See AT&T U-verse Gains Broadband, Video Subs.)

Verizon picked up just 57,000 FiOS Video customers in the winter quarter, down markedly from 92,000 customers in the previous quarter and 160,000 a year ago. As a result, the telco ended the quarter with 5.3 million FiOS Video subscribers, still more than most US cable operators but increasingly less than U-verse's total.

Likewise, Verizon netted a relatively modest 98,000 FiOS Internet subscribers over the first three months of the year, as it continued to switch its dwindling base of copper DSL subscribers over to its fiber network. That's well below the 126,000 new subscribers that it added in the fourth quarter and the 188,000 that it added a year earlier. Verizon closed out the quarter with 6.2 million FiOS high-speed data subscribers, more than most cable operators again, but now well behind U-verse.

The growth slowdown appears directly related to Verizon's decision not to extend FiOS's reach beyond its existing markets. Although the penetration rates for FiOS's two main services continue to edge up, both take rates have now scaled 35% of the homes in FiOS markets, indicating that there's little room for more growth. Verizon now offers FiOS to 18.8 million homes, far fewer than AT&T has accumulated in its still-expanding U-verse universe.

Not surprisingly, Verizon executives played down FiOS's decelerating growth in its earnings report this morning. Instead, they stressed the still-growing penetration rates for FiOS Video and FiOS Internet, which now stand at 35.0% and 39.7%, respectively. They also emphasized the healthy increases in FiOS revenues, which rose to $3 billion in the quarter, up 15.5% from the year-ago period.

Verizon officials said that a majority (51%) of their FiOS Internet subscribers now take FiOS Quantum, its highest broadband tier with download speeds of 50 Mbit/s to 500 Mbit/s. That's up from 46% of FiOS Internet subs at the end of last year.

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

(30)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 3   >   >>
OldNHMan
50%
50%
OldNHMan,
User Rank: Light Beer
5/1/2014 | 2:51:21 PM
Re: Unfortunate
I have certainly seen smaller operators doing well deploying fiber, even in low density semi-rural and rural areas. One such, TDS, just bought out a small telco in a nearby town here in NH and has started running fiber along all of the existing copper. Their plans are to decommission the copper after the fiber build-out has been completed. The copper is in such bad shape it was cheaper for them to replace it with fiber than to build out new copper. I don't know if they're building out using PON architecture or point-to-point, but this isn't the first time they've done this. It appears they've been able to make it work. I guess they don't feel the need for a quick turnaround and are willing to go for the long term return.
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/29/2014 | 9:13:01 AM
Re: Unfortunate
 

MMQoS,

No sir, I was an executive at AFC.

seven

 
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
4/29/2014 | 4:06:12 AM
Re: Unfortunate
brook:

So you were a semiconductor (ASIC guy at AFC)?  Even more interesting as I was a network architect at National Semi for Ethernet, FDDI and hate to admit it but ATM, then moved to Nortel R&D as a sytems guy and was FSAN lead.

Enjoyed working with the triBoC on the PON project after being one of the founders of MEF.  Still frustrated though with slow VDSL from at&t in my locale.

MMQoS

 
brookseven
50%
50%
brookseven,
User Rank: Light Sabre
4/28/2014 | 11:38:54 PM
Re: Unfortunate
MMQoS,

Yes, there is a relatively (compared to NY + Boston + Philly) small number of subs in SoCal.  There are slow growth parts of AT&T (mostly in the former Ameritech properties).  But if you compare the overall demographics you will see that Verizon has a lot higher percentage of low/no growth properties.  If you look at the way that Verizon has sold off properties, they only kept the growth GTE properties.  Texas - Florida - California.

As an aside, SoCal used to have the highest percentage penetration of FiOS - even higher than Keller.

I have no idea if you know me or not.  I was not a big fan of going to FSAN meetings and I used to send our systems guys to them.

seven

 
MMQoS
50%
50%
MMQoS,
User Rank: Light Sabre
4/28/2014 | 9:37:18 PM
Re: Unfortunate
seven:

You hit the nail.  As one of the creators of GPON in FSAN, many times we discussed that once the fiber is into the home you win.  It is just the cost of deployment and maybe more, getting the municipalities to allow free access. 

So while I agree that LR posters etc need to do their homework, I don't agree with you that "Verizon is located in primarily low growth to negative growth population states."  When you worked for AFC you should remember that there are a lot of Vz (ex GTE) subs in So. Calif.  I think that the reason is surely ROI but more that Ivan and Mark are no longer execs and the VZ Wireless crew is running the show.

BTW do we know each other?

MMQoS   
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
4/28/2014 | 12:15:10 AM
Re: Unfortunate
Is it possible that Verizon might not see the investment in FiOS as worth the payoff. Is the subscription rate meeting their goals and expectations? In other words, in the areas served are a sufficiently large percentage of households subscribing to the service to make it pay off?
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
4/27/2014 | 9:31:44 AM
Re: Unfortunate
Ah, I had heard the opposite from Verizon customers.  Is this relatively new?
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
4/27/2014 | 8:34:24 AM
Re: Unfortunate
There may be limited growth as costs rise and customers determine it's just not worth the extra tariff to get those higher speeds. It's still surprising to me just how slow a connections allows one to view video without problems. Why pay for super high speed at double or more the cost when an economy price will do the job for most consumers.
unbearable
50%
50%
unbearable,
User Rank: Light Beer
4/26/2014 | 6:23:39 PM
Re: Unfortunate
The "many" who are paying $70 for Google's product are located in cherry-picked cities and cherry-picked neighborhoods, where Google campaigned for years to entice the population to pressure their politicians to give Google a free pass on regulatory hurdles and have the taxpayers assume the corporate liability for the network.

Whether these chosen cities are profitable or not, will likely never be known - despite their celebrity status among writers like you, and despite their pledge to not be evil, they are certainly not going to be forthcoming with the actual financials for each Fiberhood, especially if such disclosures might threaten their ability to maintain their 3% net corporate tax rate or subject them to anti-trust scrutiny.

I can only imagine the headlines you'd write if Verizon did the same, and required entire neighborhoods to take a loyalty pledge - prefund and sign contracts, prior to obtaining service commitments for Fios.

 

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
4/26/2014 | 3:34:39 PM
Re: Unfortunate
The phone company here, CenturyLink, is offering 12-40Mbps fiber speeds for $20 a month (for one year or else for multiple years if you bundle with phone service).

I don't know what happened with FiOS except that it seems like they've taken an exceedingly long time to roll it out, and then there's word of Google maybe offering 10Mbs speeds for free (charging only for their 1Gbps service).

Can anyone tell me -- with fiber -- do all these companies run their own fiber cables?   The reason for monopolies in cable TV was that they didn't want to have run 3, 4 or 5 cable lines in the same neighborhoods.   Isn't it the same with optical fiber?  

 

Really, I thought it was the local phone companies who laid fiber to the COs for VoIp and that we are only talking about the last mile from the CO to the home for fiber.  Or does each company (google, FiOS, CenturyLink) have its own complete network from home to backbone?
Page 1 / 3   >   >>
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
The Finger-Lickin' Fone: A Plucky Effort?
Ray Le Maistre, International Group Editor, 7/14/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
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.