dslreports logo

story category
Verizon Again Confirms FiOS Expansion is Over
Sorry Buffalo, Alexandria, Baltimore and Boston
by Karl Bode 08:58AM Friday Mar 23 2012
We've noted for some time that Verizon's FiOS expansion is over, with the exception of areas (mostly large cities) where they're still pursuing franchise build-out obligations. Given that this leaves not only millions of rural customers but major cities (Buffalo, Boston, Alexandria, Baltimore) only older DSL lines, the question has always remained whether expansion could be fired back up at a later date. With Verizon's new deal with the cable industry those questions have grown somewhat louder, with many wondering if the deal included under-the-table agreement by Verizon not to expand FiOS into any new cable territories.

Click for full size
Testifying before Congress this week to defend the deal, Verizon's General Counsel Randal Milch made it rather clear that Verizon had never had any intention to expand FiOS further. As the webcast (around minutes 35 and 66) notes, Milch made it pretty clear that there's no plan for FiOS expansion -- adding that "Wall Street punished us for investing in FIOS."

Verizon's strategy has been to upgrade key markets with FioS, sell a large chunk of unwanted markets, then fill in what's left with either mobile or fixed LTE services that cost less to deploy and support for numerous reasons. There might be a day where Verizon singles out some areas where it just doesn't make sense to leave customers without upgrades -- like Boston -- but it's pretty clearly not happening anytime soon.

Wireless is Verizon's quarterly returns love affair now, since it's a sector where the company can enjoy non-unionized labor while charging users $10 per gigabyte in overages. Keep in mind they're also planning an over the top video partnership with Red Box to be launched later this year that will be layered on top of their fixed LTE service as Verizon pushes for nationwide branding.

104 comments .. click to read

Recommended comments

Looking at the bigger picture

2 recommendations

reply to tim tim tim

Re: no more government!

I am with S_engineer... make Internet a federally regulated utility. It is simply too important to trust to a few greedy mega-corporations that can't seem to get their acts together. The fact that we are falling so far behind in technology simply because it isn't deemed profitable enough is unacceptable.

I would take it one step further and say that communications providers should be run as non-profit organizations. All revenues should go back into the system... not into shareholders' pockets. We don't need them leeching off the system.



2 recommendations

reply to S_engineer

Re: "Wall Street punished us for investing in FIOS."

We did it with the interstates, why not do the same with something as crucial as our data networks...

I noticed the Aussies are rolling out a national wholesale FTTH network. That way their government owns and control the underlying infrastructure, while much like a road, any number of businesses can utilize it and resell their services over it.

Once again government will have managed to create a significantly more competitive market than the private sector alone; which in reality, contrary to GOP rhetoric, for obvious reasons hates competition.

The fact is that the private sector does not have the stomach for long-term investments mandatory for projects like this.

This quarterly-driven outlook is also why the world has significantly overtaken us in infrastructure and large scale projects and quite frankly it's a weakness that countries like China are exploiting.

This private only policy post Reagan has failed America in every aspect.


New York, NY

2 recommendations

This is everything that's wrong with America.

You Americans are digging your own grave with your unchecked greed.

Have fun being a third world banana republic to the upcoming Chinese-dominated world, Americans.


Carlisle, PA

2 recommendations

reply to Tomek

Re: "Wall Street punished us for investing in FIOS."

said by Tomek:

Companies are driven by profit. Investors want their low-tax income and care less.
I remember when verizon was defending FIOS push.

And that's why they should be OK with FIOS. We've been looking at houses lately as we just sold ours. In those houses that had FIOS available every one of them had a FIOS box on the wall. Those that were not vacant many were also FIOS TV subscribers as well.

I know in our neighborhood (got FIOS in 2008) I'm seeing more and more FIOS Boxes show up on houses. In the house we just bought you can get FIOS and I'm thrilled. No Comcast (I would have dealt with them) and hopefully I can just take my FIOS boxes with me.

It is a great product and much better than Comcast. Shame they won't build it out more. As a Verizon shareholder I'd like to see them in a better long term position than short term.

And now I can actually see the point. With the advent of mobile devices people are no longer connected at home.

Really? People need good connections at home. I know I work from home, have an online bakup, VOIP, and an Apple TV. I love our 20/15 FIOS connection with no caps. I also love my data on the go but I need a good connection at home. I don't know anyone that has given up their high speed internet for the stuff on their phone. And with overages and limits I don't see that happening any time soon either.


·Verizon FiOS

2 recommendations

reply to FloridaBoy
said by FloridaBoy:

C'mon S, got to keep that stock price up!! Never mind a bigger payout later, we need cash now!!

gone are the days of long-term investment...now it's all instant gratification!

Chicago, IL

2 recommendations

"Wall Street punished us for investing in FIOS."

So anything that moves America forward, gets pushback from the new American aristocracy known as Wall Street. Chinese wages...here we come!
"Thanks for the dance... and cut yourself a slice'a throat! "
- Curly (HOI POLLOI, 1935)