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Is Verizon’s $23 Bln FiOS Bet Working?

May 18, 2009  •  Post A Comment

It looks as if Verizon’s $23 billion bet in building FiOS service may be falling short, Advertising Age reports. Five years after starting, Verizon has a 27% penetration rate in the 16 states where it offers the service, short of its target of 35% to 40%, the trade paper says. It’s unclear if Verizon will be able to meet its goal, the publication adds.
—Aimee Picchi

2 Comments

  1. As a FiOS subscriber for a couple of years, I can tell you why Verizon isn’t meeting its goals: cost. The service is very good (though not excellent), but a comparable triple service (phone, Internet, TV) from Time Warner is 2/3 the price. Why is Verizon so expensive? They’re billing themselves as better than cable, but I can’t see any difference, and I’ve been in TV for 25 years. I’m a critical viewer, and digital cable stacks up pretty well against FiOS. The Internet connection is faster, but is it fast enough to make up the difference in price? In a word, no. I’m not entirely satisfied and there’s this nagging little voice telling me I’m getting screwed.

  2. The price issue isn’t to the consumer, it’s the install. It’s thousands of dollars to get the glass to the house so Verizon is cherry picking it’s opportunities. This is why it’s so sloooow in rolling it out. I know of at least two examples where a friend has the service but their neighbor can’t get installed and vis versa. Although Verizon is slow, once they get going momentum kicks in and they will just pick up speed. I would hardly bet against them in this game. George Gilder called this one 15 years ago. Telcos will win the video war over Cable.

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