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First Phase Of Verizon FiOS Build Coming To An End
Company will now focus on improving uptake in existing markets...
by Karl Bode Tuesday 12-Jan-2010 tags: Fiber · coverage · business · hardware
In 2010, Verizon will complete the first wave of their FiOS fiber to the home deployment. If you didn't get FiOS during that initial push you may be in for a wait, as we're seeing every indication that Verizon wants to pause and try to ramp up subscriber uptake in the areas they've deployed to before building out further. Speaking at an investor conference this week, Verizon CEO Ivan Seidenberg said the company's employees are "not going to get paid very much if they don’t get to 40%" penetration in existing FiOS markets. Despite advancements like bendable fiber and a new, smaller ONT for apartments, Seidenberg says they're still struggling with apartment deployments:

"We’re finding the gravity of getting into a 30-story building and dealing with landlords and cable companies is taking a little longer," Seidenberg said. "The operational complexity has, to some extent, been gating the opportunity for growth in net adds. It’s better today than it was years ago, but it should be seamless. It should be done in two days. It should be provisioned over the net."

Don't expect a major announcement for a next phase of FiOS until Ivan is happy with the uptake in existing deployment footprints. It should be interesting to see how Verizon treats the other half of their customers, most of whom are still on aging copper in less profitable towns and cities. Will Verizon's next deployment phase be as ambitious? Will they explore cheaper alternatives like fiber to the node to save money? Wait until LTE becomes commonplace and migrate rural users to it? If you're a rural Verizon customer you have to be particularly wary, given Verizon's shift toward selling off less profitable markets.

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chronoss2009
Premium
join:2008-09-23
kudos:2

landlord

yea like he wants ot have you dictate to him
and your telling him otherwise we'll make sure none of your tenants have tv , a phone or internet, as a threat . YUP that usually works
rossies

join:2007-08-06
Tarpon Springs, FL

At my curb but not my house

I hope this completion of the deployment includes getting from the curb of my property to my house. They buried fiber in my front yard in the Tampa market in October of 2008 and have yet to offer Fios to me or my neighbors. Seems like a waste of money.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
kudos:2
Reviews:
·RoadRunner Cable

Re: At my curb but not my house

said by rossies:

I hope this completion of the deployment includes getting from the curb of my property to my house. They buried fiber in my front yard in the Tampa market in October of 2008 and have yet to offer Fios to me or my neighbors. Seems like a waste of money.
Yeah, FIOS is in my city down the street but not mine!!

aciddrink

join:2000-08-26
Lexington, KY
At least FIOS is near for you. They haven't even announced interest in deploying FIOS to the midwest even though we've had Verizon as a DSL carrier out here for 10+ years.
Bob61571

join:2008-08-08
Washington, IL
Reviews:
·Frontier Communi..

1 edit

Re: At my curb but not my house

Aciddrink(don't know where you live from your profile),
Verizon is in midst of selling out all their Midwest(Ohio, Michigan, Indiana, Illinois, Wisconsin) landlines/wirelines to Frontier, so no Verizon FiOS for us.

Even the only Midwest Verizon FiOS in Ft. Wayne, Indiana area will transfer over to Frontier.

Karl (of dslreports.com) has many stories on this website, for your review.
Here's an original announcement in May 2009 from Wall St Journal.
»online.wsj.com/article/SB1242213···777.html

My suspicion is that Verizon believes that economy will not improve for a few years. So, they would rather invest $ in current markets, than spend $ on big capex in brand new markets. I believe that VZ's waiting on the economy, and hoping that technological advances/Moore's Law will allow them to build out newer markets at a lower cost in future.

aciddrink

join:2000-08-26
Lexington, KY
Reviews:
·Insight Communic..
·Windstream
·Comcast

Re: At my curb but not my house

Thank you for the information. I am in central Illinois.

I do remember hearing about a possible Verizon buyout a couple years ago, but I was unaware anything has actually been set in motion. Truly sad for the future development of broadband in the mid-west.

Z80A
Premium
join:2009-11-23

If they want to ramp up the uptake...

...they need to quit ramping up the price increases.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: If they want to ramp up the uptake...

1. Everybody's increasing prices.

2. Did you really expect that a fiber optic network would be cheap?

Z80A
Premium
join:2009-11-23

Re: If they want to ramp up the uptake...

And so long as they raise prices like cable, they will have difficultly competing with cable.

Price is king. Speed isn't.

IOW, if they expect to see an uptake with their endless price increases...they're in for a long wait.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: If they want to ramp up the uptake...

said by Z80A:

And so long as they raise prices like cable, they will have difficultly competing with cable.

Price is king. Speed isn't.

IOW, if they expect to see an uptake with their endless price increases...they're in for a long wait.
Do you really see any people here canceling FiOS and going back to cable because they raise the prices? Didn't think so.

Van
Premium
join:2009-07-08
New Orleans, LA

Re: If they want to ramp up the uptake...

said by fifty nine:

said by Z80A:

And so long as they raise prices like cable, they will have difficultly competing with cable.

Price is king. Speed isn't.

IOW, if they expect to see an uptake with their endless price increases...they're in for a long wait.
Do you really see any people here canceling FiOS and going back to cable because they raise the prices? Didn't think so.
I see more and more people talking about such a move. Much more than in the past. If it continues, I wouldn't be shocked if more left for cheaper cable.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

1 edit

Re: If they want to ramp up the uptake...

said by Van:

I see more and more people talking about such a move. Much more than in the past. If it continues, I wouldn't be shocked if more left for cheaper cable.
Talk is cheap. I'll believe it when I see actual cancellation. The FiOS fanboys here aren't going to cancel and go back to Comcast and Time Warner.

Besides they have that nasty ETF to deal with. They aint goin' nowhere.

Van
Premium
join:2009-07-08
New Orleans, LA

Re: If they want to ramp up the uptake...

said by fifty nine:

said by Van:

I see more and more people talking about such a move. Much more than in the past. If it continues, I wouldn't be shocked if more left for cheaper cable.
Talk is cheap. I'll believe it when I see actual cancellation. The FiOS fanboys here aren't going to cancel and go back to Comcast and Time Warner.

Besides they have that nasty ETF to deal with. They aint goin' nowhere.
Maybe they are lying but I doubt it. If the prices keep increasing and others stay the same, money will talk in the end....as it usually does.

In the last 3-5 months, I have seen more people discussing why they didn't choose FiOS or why they left FiOS and it always came down to price.

Before then, I really hadn't heard a SIGNIFICANT amount of posters ever talk about that. Significant mind you, of course we have always heard a few bitch about price.
Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
Bear in mind too that very few people out there fall into the "fanboy" category. There are plenty of people here who will spend what it takes to get the best experience they can. But they're a minority. The majority are far more sensitive to price.
--
"Religion allows people who would otherwise be arguing about whether the Death Star could beat a Borg Cube to have a place of respect within society."

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: If they want to ramp up the uptake...

said by Corydon:

Bear in mind too that very few people out there fall into the "fanboy" category. There are plenty of people here who will spend what it takes to get the best experience they can. But they're a minority. The majority are far more sensitive to price.
Agreed but two things make people switch to Verizon.

1. The prices

2. The perception (right or wrong) that FiOS provides an overall better experience.

#1 is a straight numbers game. However, Verizon is offering a lot of deals to sweeten the pot - free this, free that, gift cards etc.

#2 is subjective, especially with Cablevision markets and people who want to keep their analog service. Cablevision in particular has been putting up a damn good fight against FiOS and is even winning in some cases. But things like "more HD channels" and "nerve shattering internet" will drive a lot of people to FiOS.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: If they want to ramp up the uptake...

said by fifty nine:

said by Corydon:

Bear in mind too that very few people out there fall into the "fanboy" category. There are plenty of people here who will spend what it takes to get the best experience they can. But they're a minority. The majority are far more sensitive to price.
Agreed but two things make people switch to Verizon.

1. The prices

2. The perception (right or wrong) that FiOS provides an overall better experience.

#1 is a straight numbers game. However, Verizon is offering a lot of deals to sweeten the pot - free this, free that, gift cards etc.

#2 is subjective, especially with Cablevision markets and people who want to keep their analog service. Cablevision in particular has been putting up a damn good fight against FiOS and is even winning in some cases. But things like "more HD channels" and "nerve shattering internet" will drive a lot of people to FiOS.
Apparently Verizon is having trouble with uptake. They`re obviously going to have the sweeten the pot even more. Raising prices is not going to make it easier for them.

hambone42
Peace, through superior firepower
Premium
join:2002-02-02
Manassas, VA

Re: If they want to ramp up the uptake...

said by sonicmerlin:

Apparently Verizon is having trouble with uptake. They`re obviously going to have the sweeten the pot even more. Raising prices is not going to make it easier for them.
Then it sure seems like they're going in the wrong direction, if this previous news story »Verizon's FiOS ETF: $360 Starting January 17 is accurate. I can't speak for others, but the proposed new rate structure and doubled ETF is making me reconsider the jump to FiOS, even with all the issues I've had with Comcast over the years.
--
Sarcasm is the Body's Natural Defense Against Stupidity

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS

Re: If they want to ramp up the uptake...

said by hambone42:

said by sonicmerlin:

Apparently Verizon is having trouble with uptake. They`re obviously going to have the sweeten the pot even more. Raising prices is not going to make it easier for them.
Then it sure seems like they're going in the wrong direction, if this previous news story »Verizon's FiOS ETF: $360 Starting January 17 is accurate. I can't speak for others, but the proposed new rate structure and doubled ETF is making me reconsider the jump to FiOS, even with all the issues I've had with Comcast over the years.
the 17th can't get here soon enough. I want to change my bundle so I can get the 35/35 tier. And if for some unforseen reason I have to move.. oh well..I signed the agreement so I have to pay the ETF. that's life. It certainly won't stop me from getting a new bundle. ETFs have never stopped me before with DirecTV and Comcast. So why would it make any difference with FIOS?

Van
Premium
join:2009-07-08
New Orleans, LA

Re: If they want to ramp up the uptake...

said by aaronwt:

said by hambone42:

said by sonicmerlin:

Apparently Verizon is having trouble with uptake. They`re obviously going to have the sweeten the pot even more. Raising prices is not going to make it easier for them.
Then it sure seems like they're going in the wrong direction, if this previous news story »Verizon's FiOS ETF: $360 Starting January 17 is accurate. I can't speak for others, but the proposed new rate structure and doubled ETF is making me reconsider the jump to FiOS, even with all the issues I've had with Comcast over the years.
the 17th can't get here soon enough. I want to change my bundle so I can get the 35/35 tier. And if for some unforseen reason I have to move.. oh well..I signed the agreement so I have to pay the ETF. that's life. It certainly won't stop me from getting a new bundle. ETFs have never stopped me before with DirecTV and Comcast. So why would it make any difference with FIOS?
Not everyone has an extra few hundred to cancel a service

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS

Re: If they want to ramp up the uptake...

said by Van:

Not everyone has an extra few hundred to cancel a service
I don't either but I understand that if I sign the contract that I am legally liable for it. And I have no intention of trying to get out of obligations that I approved when I signed up.

hambone42
Peace, through superior firepower
Premium
join:2002-02-02
Manassas, VA

Re: If they want to ramp up the uptake...

said by aaronwt:

I don't either but I understand that if I sign the contract that I am legally liable for it. And I have no intention of trying to get out of obligations that I approved when I signed up.
Exactly my thoughts on the subject.

I just started the second year of a two-year contract for my VZW cellphone. The difference between that situation and FiOS is that if I move from this area, I can take the phone with me and still be reasonably certain I'll be able to use the service. There's no guarantee that I would be able to do the same with FiOS, since I can't predict today when, where, or if I might move within the next two years. I'm not interested in signing a contract with Comcast for a bundle, for the same reasons.

Verizon, Comcast, and the rest are obviously free to establish whatever contractual restrictions they think are smart and/or profitable. I am equally free to decline their terms; I am a little curious, about how they measure or estimate lost sales due to these contract terms.
--
Sarcasm is the Body's Natural Defense Against Stupidity

Truth b Told

@cox.net

Re: If they want to ramp up the uptake...

Few things...

$360 ETF is prorated $15/mo

If you move and you are not moving to a FiOS area - NO ETF

Cellphones have ETF
Cable Bundles have ETF

Rob23

@windstream.net
IF you read page 6 of the transcript you get a different view of the take rate. He also said fios " Turned EBITDA positive in 2008 Operating income positive in 2009 which we are close to but not quite there and net income positive "?" the year after that......."

fanfare

@ptd.net
They are having trouble with "uptake" as you say mainly because of landlords of large apartment complexes (as Ivan eluded to). You are crazy if you think anyone ... and I mean anyone, would switch back to cable once they tried FiOS. It would be like switching back to Broadcast TV after you had cable installed; the progression is exactly the same. Cable TV was first invented here in my area. People said the same thing (what? "PAY" for television? ... television is free!... nobody will ever take cable over EM broadcast!) Guess what? TV broadcast over EM wave is shutting down everywhere... it was a done deal from the moment the first tv was connected to a wire.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by fifty nine:

said by Z80A:

And so long as they raise prices like cable, they will have difficultly competing with cable.

Price is king. Speed isn't.

IOW, if they expect to see an uptake with their endless price increases...they're in for a long wait.
Do you really see any people here canceling FiOS and going back to cable because they raise the prices? Didn't think so.
the only downside to fios: AVAILABILITY.
--
When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee

Z80A
Premium
join:2009-11-23

Re: If they want to ramp up the uptake...

And the worst billing on the planet.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3
said by Z80A:

Price is king. Speed isn't.
... sigh... this isn't true... what ever the consumer finds more of a value to them IS king... not everyone shops on price.. not everyone shops on speed..

Z80A
Premium
join:2009-11-23
Reviews:
·Cox HSI

3 edits

Re: If they want to ramp up the uptake...

Go look at the DSLR/Archive and you will see speed isn't king, even with the nerds on DSLR. The vast majority avoid the 50/20 tier.

»/archive?f=g&d···Graph+it

And for the general population it is even more true. They simply don't buy the fat$ tiers. They buy the cheaper bottom end tiers.

Offering 50/20 doesn't mean anything if it's $99+/mo. Telcos SMOKED cable in new adds when they offered their dirt cheap DSL and then they themselves got smoked when they hiked the prices. Triple play, limited time promos, free this free that...it all speaks to the indisputable fact that price is king.

If speed was king, Verizon would see 100% of available fiber customers buying FiOS over cable or DSL and this whole article is about how people aren't and VZ is stopping to focus on it. They can focus until they are blue in the face. They won't see the big "uptake" they're looking for unless they drop the price.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: If they want to ramp up the uptake...

First off, I don't care about any statistic or group thinking from the people on this site.. not one bit.. it's not an accurate depiction of the general buying public, for one...

Second, yes, speed did matter and still does.. people still call for faster speeds.. only, at the same time, they're calling for lower prices.. so I believe there is a little of both in the mix, which is what I just said.

When phone came in with the cheaper rates on DSL, people soon figured out it wasn't a great deal afterall.. look at the number of people dropping land lines for cell and voip. Now that $14 DSL line they were underpricing became $50 and $60 ... and what did you get? a 768 or 1.5 meg line? yea.. that's real value. I'd still rather pay the $42 fee to cable and get those faster speeds that everyone salavates for... daily.

There is also a reason why the 50/20 speeds are priced the way they are.. it's not that they are expensive.. it doesn't cost more to send the same amount of data faster, per say, but it does stop more people from wanting it.. so yes, again, there are people that will shop by price... I said that. I never said "speed was king".. I said that people buy for what they need..

Also.. just becuase VERIZON'S 'fios' is available doesn't mean everyone will jump on it.. are you not getting what I'm saying? People make their own choices for what best suits themselves! You're now saying that Fiber is king.. or should be... I can tell you right now.. if Verizon was my phone provider, I'd STILL take Comcast anyday over dealign with such an incredibly insane phone company such as Verizon.. I'd much rather shove their fiber up their collected butts and see if the light shines out their noses than to use their services.

You forget SOOOO many aspects as to why a consumer makes the choice they do.. MANY people here would jump on VERIZON'S "fios" product becuase people here tend to be more technically included and want fiber.. if you don't see that, you're not reading close enough. Verizon needs to do more than just drop the price to get more customers.. they need to improve thier crappy customer service AND their plague of billing problems as well.. you see, people haven't forgotten that they're stil the nasty phone company they've been beat up by for years... so they're not going to all believe that verizon all the sudden found religion and will be better simply becuase they have fiber service.

You must be young or younger becuase there are many people that still, to this day, HATE the phone company for the years and years of their abusive powers they had government rights over on the people with.. back in the old day, their motto was "we dont' have to care, we're the phone company"...

bottom line.. there is NOT one simple reason why a product succeeds or fails.. there are many reasons.. so to say 'price is king" is invalid.. PERIOD! That may be for you, and those that think like you, but for me.. its many things.. speed, price, offerings, company reputation, policies, and overall value of what I'm getting for my money.. I choose the lesser of the two evils that work for ME..

Van
Premium
join:2009-07-08
New Orleans, LA

Re: If they want to ramp up the uptake...

said by fiberguy:

people still call for faster speeds.. only, at the same time, they're calling for lower prices.. so I believe there is a little of both in the mix, which is what I just said.
Where? Like, can you show me one time someone demanded more speed for LESS than they currently paid?

I see many here complaining (like myself) that I am getting the same service every year yet being charged more and more and more for it.

If I got better service every year, chances are low that I would be complaining when the price increases
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: If they want to ramp up the uptake...

You'd have to be blind not to see it... it's a common cry here on BBR.. people want more speed and think it should be cheaper since the technology is aged.. Search BBR, you'll find it yourself..

Second, the major cable players, at least, have been charging pretty much the SAME price for years and have increased the speeds.. they RECENTLY have started to inch up the price by a buck or two, or have increased modem rentals, which you're able to buy your own and not rent one. (that's your choice) The rate increases you are likely talking about are those of the video portion.. but interenet prices have largely stayed the same for almost a decade, for the most part.

PHONE on the other hand HAS raised their rates.. they're constantly wheeling and dealing with their prices.. they've fallen as far as $12.95 a month and fluctuate all the time.. that's the phone company and anyone that follows my posts know how I feel about the phone company and their pricing games..

So, you're saying you're not getting better service? and you're on Cox and Comcast? They've both dramatically increased their speeds... and who is to say that you need to see an ANNUAL SPEED INCREASE....? That's a desire, but it's never been implied that they do that..

Again... your interent bills have NOT gone up, with cable at least, anythign dramatic.. yet your speeds have.. from 1.5 to the average 12 meg or more is pretty substantial if you ask me.

I think you're seeing what you want to and ignoring a lot of facts... There are people here ALL THE TIME wanting more and to pay less for it..

See 14 replies to this post

tiger72
SexaT duorP
Premium
join:2001-03-28
Saint Louis, MO
kudos:1
paying customers are paying customers. If they want uptake, their pricing needs to be more competitive rather than raising rates.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: If they want to ramp up the uptake...

said by tiger72:

paying customers are paying customers. If they want uptake, their pricing needs to be more competitive rather than raising rates.
They're already cheaper than cable in many places. The only reason cable is cheaper in some places is because cable is feeling the heat from competition.
fiberguy
My views are my own.
Premium
join:2005-05-20
kudos:3

Re: If they want to ramp up the uptake...

said by fifty nine:

said by tiger72:

paying customers are paying customers. If they want uptake, their pricing needs to be more competitive rather than raising rates.
They're already cheaper than cable in many places. The only reason cable is cheaper in some places is because cable is feeling the heat from competition.
This is an interesting statement you make... it's funny where the shoe is on the other foot... phone used to RAPE THE HELL out of the consumer until cable came along.. a lot of people seem to forget just how expensive phone was, and quite honestly, still is in many cases.

Phone isn't innocent.. so it's time to stop pretending.

It's about competition.. not phone, not cable, not satellite.. it's competition period.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: If they want to ramp up the uptake...

Oh I agree, and I distrust Verizon and big pseudo monopolies in general.

But in the video delivery market there are now several choices, and two choices for many people who don't have a view of the Southern sky.

meh37II

@verizon.net
Ditto. (You beat me to it. )

Their mantra should be: "less is more". (Slower speeds at lower prices will mean more customers.)
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: If they want to ramp up the uptake...

They can do that with DSL. 3/768 for $30 is a decent deal IMO.

meh37II

@verizon.net

Re: If they want to ramp up the uptake...

said by iansltx:

They can do that with DSL. 3/768 for $30 is a decent deal IMO.
Yes, they can... and they did (I used to have it, before I got FiOS). But when FiOS rolls in, it rolls right over DSL--they stop offering it. Verizon really has no FiOS tier that's particularly appealing to those people who have not already chosen to get FiOS. Give people what they want, and they'll buy your product. 5/2 for $30 will pull in more new customers than 15/5 for $50 (and, yeah, some current customers will drop down to that, but, really, wouldn't Verizon rather they go to a cheaper tier than leave for another ISP?).

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

40% Penetration?!?!

That is a rather tall order, especially when there is really no competition between the incumbent carriers. They don't compete on price. They don't really compete on content give or take a few channels. Cable has their stupid fees for video services such as "Premium Outlet Fee" and Verizon has "FCC Line Charge". Basically if you at least somewhat happy with the carrier you have, why are you going to switch? Many people grouse at Cablevision here on Long Island but you won't save any money with FiOS and will probably have to fight billing errors left and right. OTOH, if you are fan of HGTV and/or Food Network then FiOS is a good option at this point.
--
I support the right to keep and arm bears.

jmn1207
Premium
join:2000-07-19
Ashburn, VA

Re: 40% Penetration?!?!

From what I have read, it seems that FiOS offers stable, consistent, symmetrical speeds at all hours of the day when compared to Cablevision. That might be more significant than more HD channels or a better picture quality. The billing errors are not typical for the majority of the customers, but that is one of the bigger complaints. Still, the overall product is typically rated very high, and there just isn't much else to complain about.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: 40% Penetration?!?!

But as more internet hogs move to FIOS, cable internet congestion will disappear

jmn1207
Premium
join:2000-07-19
Ashburn, VA

Re: 40% Penetration?!?!

said by patcat88:

But as more internet hogs move to FIOS, cable internet congestion will disappear
This is very true. Before FiOS was available at my house, I was completely surrounded by FiOS users for a few years. My Comcast connection was great at 16/2 using DOCSIS 1.1. I was content, but jumped at the chance for increased upload speeds as soon as FiOS was available to me. Most people would not even notice much of a difference. It's those mailers they throw on your door handle or mailbox with the bundled discount pricing that get people to call about changing their service.

Now with Comcast DOCSIS 3.0 in the area and FiOS available, while the prices are not that competitive, at least I have the option to switch providers without seeing a drastic change in service features and quality.

fanfare

@ptd.net
But it won't matter because cable will still want to cap the amount of data you can use in a month (due to -what they say- are network constraints) As we move to more and more bandwidth intensive apps..... those who have the pipe will crush the others.
iansltx

join:2007-02-19
Golden, CO
kudos:2
Reviews:
·Verizon Online DSL
·Comcast
If you're thinking that 40% market share for a superior product is a hard thing to reach, a local telephone cooperative, despite competing with Verizon in some areas and TWC in many, has 70% market share. The reason: a large portfolio of services, including speed tiers that go from 768/128 all the way up to 40/10. From what I hear the majority of folks are around the 5 Mbit mark.
dak70

join:2007-05-01
Warminster, PA

Can FiOS compete?

Does this indicate that FiOS is failing? I have FiOS and love it but let's face it at the end of the day FiOS is just cable TV. FiOS was supposed to revolutionize the industry due to its bandwidth and speed. The reality of FiOS has been small incremental improvements coupled with excruciatingly long roll out times. VZ is determined not to compete on pricing but hasn't differentiated FiOS from cable TV. In my opinion, the handful of poorly executed widgets are not a differentiator. If Verizon is no longer installing new FiOS, I wonder if software and widget improvements will be slowed or canceled?
In the Philadelphia area people literally curse the name of Comcast but FiOS still has low penetration because Comcast has been offering prices that VZ simply cannot match. VZ's costs to build and maintain the FiOS network are too high to compete on price. When customer can get $100 triple play from Comcast, they don't care about the incremental video improvement that FiOS offers.

See 12 replies to this post

matt314159
Premium
join:2006-01-18
Hesperia, CA

Bummer

It's kind of a bummer the way they're doing it; Last october, my area was scheduled to complete the build by the end of november and go live by late january or thereabouts; In January, the status had changed to on hold indefinitely.

Okay, well Charter will continue to get my money; Their 60mb service has been working great for me. I just can't believe Verizon would halt their deployment---that was almost finished---in the face of that kind of competition.

Van
Premium
join:2009-07-08
New Orleans, LA

Living in an apartment complex currently

I will agree with him in that landlords (I am a landlord, btw, back at my other home in another city) in my current area are an absolute pain to deal with

To get anything done, it takes weeks on end when it should take probably 3-4 hours in a single day.

It's laughable how lazy some people are with their jobs.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

why not wire up current neighborhoods?

By me they didnt even wire up the whole town. They skipped blocks and refuse to do anymore. How does verizon expect to make money by not wiring up entire neighborhoods?

espn420

@rr.com

Try 18% penetration in Florida

Verizon stopped their forward FIOS deployment in the six county Florida market when approximtely 2/3 of their footprint was built out. Their penetration numbers were a woeful 22% initially and have churned to a miserable 18% (currently).

The incumbent cable operator for the majority of the Florida footprint is Bright House and they have handled the competition in a spectacular fashion. No installation fees, no long term contract and basically no bullshit. Verizon, not so much. Their attitude from the beginning was that of the proverbial 800 pound gorilla, without the usual manners. Most folks recognize Verizon's product is vastly superior but the market share remains with the incumbent.

Multiple dwelling unit build outs are also very slow, as the incumbents have signed a majority to long term bulk agreements.

Great idea; lousy implementation.


NJBoricua75
Born And Raised

join:2000-09-13
Brooklyn, NY

1 edit

Told you so...

FAIL!!! I bet the Dolan's are smirking at this news. Fios in New York City by 2015??? Yeah RIGHT!!! NYC is a concrete jungle and the article states they're still struggling with deploying apartments even though they now have bendable fiber theres now other obstacles. Gee what a surprise.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Told you so...

said by NJBoricua75:

NYC is a concrete jungle and the article states they're still struggling with deploying apartments even though they now have bendable fiber theres now other obstacles. Gee what a surprise.
The bigger problem is landlords who never return calls to VZ construction and only count cash all day in their office, then threaten to sue Verizon for tresspassing if they try to put in FIOS.
NeoandGeo

join:2003-05-10
Harrison, TN

.

I don't see FiOS within 300 miles of my location, and I am in partial ATT 3G coverage.

That looks worse than terrible.
kd6cae
P2p Shouldn't Be A Crime

join:2001-08-27
Palmdale, CA
Reviews:
·Vitelity VOIP
·AT&T U-Verse

What about those who want FIOS but can't get it?

I'm in a verizon area. I would love to get FIOS here, as I want more upstream especially and time warner cable just can't/won't even provide what they advertise let alone anything better. I however live in an older neighborhood with decades old copper and therefore my best service I can get from Verizon is 1.5mbps/384kbps ADSL.. A friend of mine about 8 miles away however is in a newer development that was lucky enough to have FIOS deployed to it and she has 20mbps/5mbps service and it beats the pants off even my time Warner cable service. My friend is the only person I know in the Lancaster area that has FIOS. Why doesn't Verizon realize that there are people such as myself who want FIOS service and would do anything to get it if only Verizon would make it available! The average person if they have a stable connection and they don't care about speed will happily stick to low speed DSL and be perfectly happy. But for those of us who need the speed, especially in the upstream direction, verizon should concentrate on deploying to their entire footprint! When FIOS came around I was so excited, I figured that within a couple years I'd be on a FIOS connection myself. Now it looks as though that will never happen. How can Verizon not want new customers to sign up for an awesome service? If they deploy the damn service, I can tell you users will come, especially here in a crappy Time Warner area. Get it together Verizon, and deploy to all your customers, so everyone can enjoy your services!

See 8 replies to this post
caco
Premium
join:2005-03-10
Whittier, AK

That is a hell of a moral booster.

Verizon CEO Ivan Seidenberg said the company's employees are "not going to get paid very much if they don’t get to 40%" penetration in existing FiOS markets.

I'm sure he includes himself in that statement.
--
Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

1 edit

Re: That is a hell of a morale booster.

said by caco:

Verizon CEO Ivan Seidenberg said the company's employees are "not going to get paid very much if they don’t get to 40%" penetration in existing FiOS markets.

I'm sure he includes himself in that statement.
What he said:
“We’re averaging just under 30% [FiOS penetration] for the whole property,” Verizon CEO Ivan Seidenberg said at an investor conference today. “My people think they can get to 34%. They’re not going to get paid very much if they don’t get to 40%. The question is how quickly we can get there.”
The boss thinks they can get to 40%. The employees think they can only get to 34%. It is good mgt to set a target HIGHER than what the employees think is fair. And bonuses & compensation should be based on busting their asses and not just reaching an easy target.

But whatever the target, it sure looks like deployment in to new areas could be a year or more away.
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My BLOG .. .. Internet News .. .. My Web Page


EyeBision

@verizon.net

Re: That is a hell of a morale booster.

The boss thinks they can get to 40%. The employees think they can only get to 34%. It is good mgt to set a target HIGHER than what the employees think is fair. And bonuses & compensation should be based on busting their asses and not just reaching an easy target.
Good management? Apparently you don't work for Verizon or your a manager suckling off of his tit. I am an employee there and I have to tell you, the management structure (especially towards the top) are so far removed from reality that it is severely hurting company morale and throwing customers away - for example, look at the new DRM. From my perspective, their outright draconian treatment of the workers is shameless. We are labeled guilty until proven innocent. On one hand, we have a meeting and they're telling us we are one of the best in the nation for productivity from one manager, then another comes in the next week telling us we need better numbers or there will be heads rolling. They are the quintessential micro-managers, wanting to know every possible variable down to the minute and want every job coded correctly without fail. Otherwise you will be disciplined. We are to "wow" each customer and try to upsell whenever possible and have them begging us to give us their money.

Out of our technicians, there are maybe 2 out of the whole group that are happy. The others are so fed up with the treatment that we are either hopelessly looking for other employment or going to school to finish our degrees to one day do the same as the first group. Others just bitch and complain but just put up with it. Hey Ivan, I have your 40% right here a$$hole. I'm not a salesman and it's not my job description. I am a technician and a damned good one at that. Stop having your sales team cut us off at the knees and selling numerous dvr's to old timers that can't even wrap their mind around the concept of a widget for christsakes. Does anyone here have any idea how long it takes to teach an 85yr old with macular degeneration how to use all the functions of a fios remote???

lol. If I don't laugh, I will cry. peace.

Rob23

@windstream.net

Re: That is a hell of a moral booster.

He also said " So where we have offices open for sale for more than 36 months our penetration rates are 35% to 40%. In some markets, we are close to the 45% to 50%."
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

Can you hear them (customers) now?

Higher customer base AND higher ARPC (average revenue per customer)?

Umm, yeah.. lemme get back to you on that one..
Higher prices, higher ETF's and lack of any comprehensive evolution of the cable-tv & digital voice (POTS) products make Verizon lucky to have 10-12% of the market let alone 40% or more.

Once 1/17/2010 rolls around in a few days let's see how good the deals become. With higher gas prices coming to town.. nobody's going to want to hear about higher prices from Verizon (unless the cable companies dare raise theirs higher than Verizon's).
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Can you hear them (customers) now?

said by tmc8080:

(unless the cable companies dare raise theirs higher than Verizon's).
And they will according to Craig Moffet.
jmt380

join:2009-04-05

What smaller ONT?

I don't know what Verizon is smoking. I just had Fios installed into my condo last week. The ONT they used was almost twice the size of my last ONT (was an apartment in the same city).

This new ONT takes up almost 1/2 the wall of my hall closet.

perki

join:2008-12-01
Santa Maria, CA

Bad Joke

For the first time in history a man says the following

"thank god for the cable company"

Without them i'd be stuck at 180 kB
hussle87
Premium
join:2008-01-06
Sykesville, MD

Re: Bad Joke

yeah and I can't even imagine the cap that would be implemented.

Warren969

@cogentco.com

Still waiting in Brooklyn, NY for FiOS deployment

Verizon has wasted 100s of letters in red, red & white, white envelopes to my house over the years on their claims of FiOS being "right around the corner" and "the best/faster/diverse" way to utilize the internet.

So my house in Brooklyn, NY is still not part of the FiOS area in New York City.

Got another piece of mail from Verizon and an insert in the Verizon Wireless bill about FiOS. Seems Verizon can send mail to my house but putting the fiber wires to the neighborhood isn't in their plans till 2020.

So Dish Network, DirectTV, Cablevision and the Verizon high Speed DSL over copper is the only choices.

Verizon should stop generating paper waster about FiOS to save money for Ivan's compensation package for 2010-2015.
mmmmna

join:2010-01-04
Center Barnstead, NH
Reviews:
·TDS

Fi... whut?

No soup for me. In 2005, ADSL service was made available at my address. The nearest fiber is 1/4 mile down my driveway. Ahhh! The rural life!!!

At least I have ADSL.

wesm
Premium
join:1999-07-29
Redmond, WA

Something to be said for being in D/FW

In my little burb (not the one to the left, it's closer to Keller), Verizon just finished wiring southern Keller--the part served by AT&T--and, I supposed, figured they'd do the next town over while they had the trucks out. Since Verizon came in, there's now five video providers (AT&T, Verizon, Charter, DISH and DirecTV, in no particular order) and four Internet (Verizon, AT&T, Charter and Clear). It's a pity none of them are playing off each other to keep prices down, though...
--
Opinions expressed here are mine and not my employer's. This posting is provided "AS IS" with no warranties, and confers no rights.
Warren96

join:2009-11-13
Brooklyn, NY

Re: Something to be said for being in D/FW

If prices stay the same, then you have a Cartel in your area.

A thing that the U.S.D.o.J. frowns upon, and every state attorney general aren't too happy with either.
munky99999
Munky

join:2004-04-10
canada
Reviews:
·Cybersurf Intern..

CANADA!

Lets get that first phase going in Canada. We have no competition at all in Canada.

I would gladly get Fios over the shitsandwich options I have now.

The tv option I'm not so sure about. If I have 5 tvs. Do I need to get 5 boxes for each tv? That's the main reason I havent gone anywhere near the new digital box tv offers. Also with fios? what wiring is being run around?

Despite those concerns. I'd still without a question drop my current garbage.

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