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Cable Technology Feature Article

March 30, 2010

Verizon To End FiOS Rollout

By Alice Straight, TMCnet Web Editor

Verizon (News - Alert)Communications Inc has indicated that it is ending the building phase for the network and will not be seeking additional TV franchises.

The company will continue build out networks in markets it has already announced.

Verizon began building its all-fiber network nearly six years ago. The network has allowed Verizon to add TV services to its lineup as well as blazing Internet speeds of up to 50Mbps download services.

Verizon ended 2009 with 2.86 million FiOS (News - Alert)TV subscribers and 3.43 million FiOS Internet subscribers. While most customers take both services, not all Internet subscribers have access to TV services just yet.

One of the main issues Verizon has faced is the need to negotiate franchise agreements with each town or city where it wants to offer TV service. And those municipalities have “build-out” requirements Verizon must meet to bring its fiber to all customers in town. Verizon says it spends $750 per house to bring FiOS to a neighborhood and an additional $600 to bring the fiber to a home when a customer wants to buy the FiOS service.

The FCC (News - Alert)has put together a 10-year National Broadband Plan to encourage affordable broadband service for every American.

Alice Straight is a TMCnet editor. To read more of her articles, please visit her columnist page.

Edited by Alice Straight