Verizon Downplays DSL in FiOS Markets

Verizon Communications Inc. (NYSE: VZ) confirmed Thursday that it will stop selling DSL services in areas where FiOS is available. "We are taking a hard look at all of our product lines and rationalizing those that are not meeting our strategic and financial requirements," CFO Fran Shammo said on a conference call with investors.

In the first quarter, Verizon lost 89,000 DSL customers while customers severed 440,000 voice connections and the company added 180,000 FiOS TV and 193,000 FiOS Internet customers. It ended the quarter with more than 5 million FiOS customers, with more than half of those customers subscribing to a service tier of 20Mbit/s or higher. The average revenue per user for FiOS is $148 per month.

Verizon will continue to sell DSL in areas where FiOS isn't available. But the telco has diversified lately so that it can provide bandwidth to consumers in some other way that doesn't require use of its old copper phone lines.

For example, Verizon's new HomeFusion product is a fixed-broadband Long Term Evolution (LTE) service that's already up in some markets, offering downstream speeds of 5Mbit/s to 12Mbit/s and 2Mbit/s to 5Mbit/s upstream, albeit with strict consumption caps. HomeFusion is considered a broadband play in rural areas outside the reach of Verizon's copper plant, but that could change. Shammo said Verizon expects to have HomeFusion available to 10 million homes by next month.

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— Jeff Baumgartner, Site Editor, Light Reading Cable

Flook 12/5/2012 | 5:35:39 PM
re: Verizon Downplays DSL in FiOS Markets

I take it VZ isn't concerned that those non-FiOS subs could go to an MSO instead of switching to FiOS. Would be interesting to see how many do that.

shygye75 12/5/2012 | 5:35:37 PM
re: Verizon Downplays DSL in FiOS Markets

$148 a month in ARPU from Fios users sounds high, considering the sub-$100 entry point that Verizon is using to attract new customers.

steve q 12/5/2012 | 5:35:36 PM
re: Verizon Downplays DSL in FiOS Markets

That is true if Verizon does not find a better way to give those cust that have dsl something better and faster then wireless they more likely go to comcast . The idea of Verizon wireless saying that you can use the HomeFusion to replace dsl is not going to work if you have to pay a higher price for the data then you did with dsl,and with the new smartphone you have the hotspot that will be the same speed as homefusion. And most people are looking for faster speed in there data and fios is the only way to get that with out going to the cable.

paolo.franzoi 12/5/2012 | 5:35:36 PM
re: Verizon Downplays DSL in FiOS Markets


On the mix of BPON and GPON.  Kinda curious for personal reasons.  I think I have a good idea just wondered if they would say anything.




Duh! 12/5/2012 | 5:35:34 PM
re: Verizon Downplays DSL in FiOS Markets

I had the impression that they weren't selling DSL to new customers in FiOS served areas, but grandfathering existing ones.  At least for now.  Part of the business case for FTTH was always lower operations and maintenance cost realized by retiring the more labor-intensive copper network.

Duh! 12/5/2012 | 5:35:34 PM
re: Verizon Downplays DSL in FiOS Markets

Upcharges for programming packages, extra lines, etc. plus rate increase after the end of the initial contract period.

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