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Verizon: 30% or More of Our Users Will Never Get FiOS
by Karl Bode 12:38PM Wednesday May 07 2014
Meaningful expansion of Verizon's FiOS services has been on hold for years now -- outside of existing franchise obligations like New York City, and even those appear to be seeing nowhere near the kind of penetration Verizon hinted at. For years Verizon executives have had sort of a "wait and see" response when asked about possible expansion, but Verizon CFO Fran Shammo this week provided the strongest indication yet that FiOS have nots should not be holding their breath.

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"We'll continue to fulfill our FiOS LFAs (franchise agreements) we will complete (the FiOS deployment) with about 19 million homes passed," Shammo told attendees of the Jefferies 2014 Global Technology, Media and Telecom Conference this week in Miami. "That will cover about 70 percent of our legacy footprint; 30 percent we're not going to cover," stated Shammo.

That 19 million homes "passed" doesn't necessarily mean served, meaning the number of Verizon customers that can't get FiOS could be significantly higher than 30%. That 30% obviously doesn't include the millions of users already sold to companies like Frontier and Fairpoint.

"We will continue to harvest that copper network and those customers and keep them as long as we can but we will not be building FiOS out to those areas," Shammo said of those unfortunate 30%. By "keep them as long as we can," Shammo actually means getting rid of them as soon as possible. Given consumer protections in many states, Verizon's been making a very clear effort to drive many of those users to cable or wireless via DSL rate hikes or by forcing them to sign up for an unwanted copper POTS line.

Verizon's seeing a significant slowdown in the uptick of new customers as the market saturates and Verizon refuses to expand, though Shammo told attendees he blames that on the "harsh winter" in the Northeast.

131 comments .. click to read

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A Matrix Ant
United State
·Time Warner Cable

3 recommendations

reply to CXM_Splicer

Re: So then, what's an acceptable rate?

said by CXM_Splicer:

Was Verizon planning on putting the cable companies out of business? What kind of uptake numbers were they projecting before the roll out?

I remember the days when DSL and cable had wars. Please bring those back, but with fiber and cable!
Ant @ AQFL.net and AntFarm.ma.cx. Please do not IM/e-mail me for technical support. Use this forum or better, »community.norton.com ! Disclaimer: The views expressed in this posting are mine, and do not necessarily reflect the views of my employer.


4 recommendations

reply to buzz_4_20

Re: You'd Think

Exactly. The people running Verizon are total idiots. They should be planning to cover 100% of their current copper territory, and eyeing lucrative markets to overbuild other providers will an all-fiber plant. They should also continue the MPEG-4 conversion and improve their channel line-up as a result, in addition to making the 150+mbps packages for more reasonable to compete with Comcast. Heck, they should offer a gig package, they have the capability to do that with GPON.


Centereach, NY
·Verizon FiOS

3 recommendations

reply to CXM_Splicer

Re: So then, what's an acceptable rate?

said by CXM_Splicer:

Was Verizon planning on putting the cable companies out of business? What kind of uptake numbers were they projecting before the roll out?

They were probably expecting far higher uptake rates in their original FiOS deployment plans. Of course, they probably would have met those goals if they stuck to the plan and hadn't raised FiOS prices so much recently.

FiOS used to be a great product at bit lower price. Now they're an average product at a higher price.


Purcellville, VA
·T-Mobile US
·Verizon Online DSL

6 recommendations

Oh the money!

VZ is terrible. They will in the end be the only ILEC that decides to not upgrade a single thing and let 30-60% of their network rot on the poles (decades old Copper not maintained, with DLSAMs from the 1990s).

The end game here is to drive everyone into the arms of Cable (gentleman's agreement with Comcast whom servs most of VZs landline footprint) and drive the rural customers onto the overpriced 4G LTE services.

I read reports that shortly after VZ sold off their POTS networks in New England to Fairpoint, DSL speeds suddenly got higher - just a little bit of investment can squeeze a bit more life out of the copper, if it was not wrecked due to ingress of water.
(Yes I know that newer cable has Goop, but if the splices get exposed...)

Frontier is in rougher shape, as they got VZs really abandoned areas (W. VA for example - both ex-GTE and ex-Bell were in rough shape).

VZ signed contracts with state PUCs that will never be fulfilled, took advantage of grant money and raised our phone rates promising a modern network that will NEVER happen. AT&T and CenturyLink have done similar, but not to the extent of VZ.

This whole mess with obtaining a modern telecom network for the next century is why I am convinced that the 1984 breakup of Ma Bell actually spawned a monster. The old System was technology focused - releasing groundbreaking technology and upgrading the network on a regular basis. The principle of Universal Service was followed.

And we broke it up, rather than re-regulating it for the future - for what? Long Distance competition?

Could have forced that on the system and kept it intact.

VZ CFO: Oh the money! So wonderful. I love 4g. Wire bad. 4g good. ohhhhhh -rolls around in piles of money-
VZ Engineering: Sir, our networks are failing - customers are defecting and we have no budget to do anything.
VZ CFO: Just duct tape/trash bag it. Remember, Bag on Strand policy.
VZ Engineering: This wont last.
VZ CFO: Who cares, its cheap. Wires are not LTE. LTE is great. I love LTE. OOOOH LTE. -rubs face with Samsung Galaxy S5, then snorts ground up $100 bills-

-the next day-

VZ Engineering: But we need that to take care of the network. We hoard equipment as you wont let us buy any!
VZ Engineering: That isn't true.
CEO: Throw out that old junk or I fire you all and replace you with subcontractors from Zimbabwe.

(This actually happened - VZ was caught throwing out dumpsters full of new equipment - splice cases, pedestals, fiber, copper, ONTs, line cards....insane! The Zimbabwe part did not though. )

Only in Murika, right guys?



4 recommendations

reply to buzz_4_20

Re: You'd Think

They spend more than 120 billion to buy out Vodaphone, but cant find a way to complete the FiOS build for another 20-30 billion? That's just embarrassing.


Limestone, ME

2 recommendations

They would want more customers.

I guess the high profit margins of Wireless are deafening.