Verizon Extends FiOS to SMBs

Building on the success it has enjoyed so far in the residential markets, Verizon Communications Inc. (NYSE: VZ) announced today it's expanding its FiOS footprint to include small and medium-sized businesses.

Verizon says it will build out its network this year to cover 200,000 businesses, or 80,000 multiple tenant units (MTUs). Just as "multiple dwelling unit" (MDU) is a fancy term for apartment buildings, MTUs refer to office parks and other building complexes made up of business customers.

Verizon was already offering FiOS to standalone business such as a doctors' offices. But after pitching the idea to business owners last fall, Verizon decided to expand to MTUs. The service will be marketed and installed in much the same way it is for MDUs. (See Fiber-to-the-MDU: Verizon's Manhattan Project and FiOS in NYC: Verizon's Daunting Task.)

The announcement comes as Verizon considers expanding its residential FiOS footprint as well. Last week, chief operating officer Denny Strigl told a Deutsche Bank AG conference that Verizon could build out the network to exceed the original goal of passing 18 million homes by the end of 2010.

Strigl offered no hints on how significantly Verizon could exceed this goal, but he did suggest it could happen “without significantly changing the capital requirements."

Verizon passes close to 10 million homes with FiOS. It has more than 1.2 million FiOS TV customers and 1.8 million FiOS Internet customers.

— Raymond McConville, Reporter, Light Reading

Kreskin 12/5/2012 | 3:38:38 PM
re: Verizon Extends FiOS to SMBs
Fiber-lite CLECs can't compete with this. It's a matter of time and a slow death. VZ won't immediately crush them, it will be slow such that regulators don't get to curious.

CLECs have had since 1996 to figure out how NOT to depend on Ma Bell. I feel no sorrow to those thinking Ma Bell is a benevolent organization.

CLECs without fiber ... game over.
rjmcmahon 12/5/2012 | 3:38:33 PM
re: Verizon Extends FiOS to SMBs VZ may not want to rebrand fiber access to businesses as something other than FiOS. FiOS gives me the impression of "triple play" with a strong focus on TV. Most SMBs don't need TV services. Also, historically businesses have paid much higher prices than consumers for telco services. The FiOS branding will come with a mass market, consumer price expectation making it more difficult to set pricing in way to maximize profits.

Better may be to come up with a new branding. Also, I'd suggest to use the best technology available and ditch PON.
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