& 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   >   >>
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
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.
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 Interviews
AT&T: Creating Dynamic Networks to Meet Business Needs

5|26|17   |   4:24   |   (0) comments


As enterprises need more dynamic networks, service providers need to deliver on-demand, virtual services to meet those needs. AT&T is creating a networking fabric to mix-and-match SDN technologies for enterprise customers, says Roman Pacewicz, AT&T senior vice president for offer management and service integration, in an interview at Light Reading's
LRTV Interviews
EdgeConneX on Industry Headwinds & Tailwinds

5|26|17   |   2:41   |   (0) comments


At Light Reading's Big Communications Event 2017, EdgeConneX CTO Don MacNeil discussed the value of partnerships in the digital world.
LRTV Documentaries
4 Steps Toward a Higher Network IQ

5|26|17   |     |   (0) comments


At the Big Communications Event in Austin, Texas, EXFO CEO Philippe Morin explains how sensors and analytics can boost a network's intelligence and enable on-demand customer experiences. Find more BCE 2017 coverage here.
LRTV Interviews
BT's McRae Sheds Light on 4K Strategy

5|25|17   |   4:45   |   (0) comments


At Light Reading's Big Communications Event 2017 in Austin, Texas, BT Group's Chief Network Architect Neil McRae talks about what it took for BT to broadcast live sports in 4K. Catch up with all our BCE coverage at http://www.lightreading.com/bce.asp.
From the Founder
How the NIA Aims to Advance NFV

5|25|17   |   08:07   |   (1) comment


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.
LRTV Custom TV
Better Solutions That Address Growing Scale

5|25|17   |     |   (0) comments


For Comcast, the X1 rollout and 17-fold increases in broadband speeds in the past 16 years are among factors driving the need for Energy 2020 solutions that reduce cost and consumption, says Mark Hess.
LRTV Custom TV
Ethernity Network Delivers Instant Offloading of Network Functions With All-Programmable Intelligent NIC

5|25|17   |     |   (0) comments


David Levi, CEO of Ethernity Networks, explains that programmability of the hardware makes the company's All-Programmable Intelligent NIC uniquely beneficial for communications service providers that need advanced data appliances with agile support of virtualization. Utilizing the company's patented network processing technology, Ethernity offers data path ...
LRTV Documentaries
BCE 2017: Vodafone Gets Obsessed With Cloud-Native

5|25|17   |     |   (0) comments


Vodafone's Matt Beal updates us on Project Ocean and explains why simple virtualization isn't enough of a goal for network transformation. Catch up with other BCE 2017 keynotes and news at http://www.lightreading.com/bce.asp.
LRTV Documentaries
BCE 2017: Intel's Take on Network Transformation

5|24|17   |     |   (0) comments


In this BCE 2017 keynote, Lynn Comp discusses Intel's vision for areas such as analytics, automation and service assurance. For more videos and BCE coverage, see http://www.lightreading.com/bce.asp.
LRTV Documentaries
Order From Chaos: The Steve Saunders BCE Keynote

5|24|17   |   17:27   |   (0) comments


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 testing.
Think of this as the video sequel to the recent columns he's written about NFV and the prospect of a telecom app store. (See

LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
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
Cities Clamor for More Clout at FCC
Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
What's Blocking 4K TV Today
Alan Breznick, Cable/Video Practice Leader, Light Reading, 5/22/2017
Sonus & Genband Finally Combine to Form $745M Company
Dan Jones, Mobile Editor, 5/23/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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 ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
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.