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Research Reports & Briefs

Broadband Business Analysis: Verizon FiOS

September 2006 - 8 pages

Scott Sleek - Director, Broadband Advisory Services

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Following on Verizon's latest data on subscriptions to its new FiOS product, this report projects unit growth and market penetration for the fiber-to-the-premises service over the next several years. This concise analysis also offers insight on how legislation and technology developments could affect the long-term success of FiOS. Five charts are included.
SERVICE OVERVIEW

GEOGRAPHIC REACH
FiOS TV Uptake

PROJECTIONS

GROWTH DRIVERS
Telecom Law Reform
Cost Controls
More Speed
New Services, Applications
Competing Cable Capabilities
Pike & Fischer report says Verizon may be too optimistic on FiOS service

Silver Spring, MD, August 28 -- Verizon will likely fall short of its market penetration goals for its fiber-optic service (FiOS), consultant Pike & Fischer predicts in a report just published.

Although it acknowledges that the Verizon service is growing rapidly, Pike & Fischer concludes Verizon’s forecasts for FiOS are too rosy when compared to the historic growth patterns of other communications services, like DSL. However, a proposed law that would make it easier to deploy television service over the FiOS network could help the company accelerate its acquisition of new customers, the report says.

With its FiOS service, Verizon is delivering telephone service, broadband, and, in many markets, multichannel video programming. The Pike & Fischer report describes the service in detail, including homes passed, sales and penetration rates, pricing, and technology. Pike & Fischer states that Verizon’s FiOS service will probably be available to fewer households, and have a lower penetration of those households, than Verizon predicts. Even so, P&F figures that by the end of 2008, Verizon could amass about 2.2 million FiOS customers—about 17.4% of premises passed and 14.4% of total broadband units.

Pike & Fischer, a publishing and consulting company owned by BNA, Inc. regularly profiles all the major players in the broadband industry. It has been covering the telecommunications industry for more than 50 years.
Scott Sleek

Scott Sleek, Director of Pike & Fischer's Broadband Advisory Services, oversees the day-to-day operations of our market research services and leads the development of analytical publications and briefings. As part of his duties, Scott serves as Managing Editor of our online newsletter Broadband Daily. Scott also oversees the development of all Research Reports & Briefs and manages the Trackers & Projections database. He regularly tracks subscriber growth, market penetration and revenue growth in the markets for high-speed Internet, packet-switched telephony, interactive TV, wireless data and other forms of broadband communications and entertainment. Scott also fields all requests for customized research and works closely with customers to fulfill their market data and analysis needs. Scott has more than 20 years of experience as a writer, editor and researcher. Contact Scott at 301-562-1530, x291 / ssleek@pf.com.

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