Cable Technology Feature Article
FiOS Network Propels Verizon's Consumer Revenue
By Ashok Bindra, TMCnet Contributor
To maintain its leadership in delivering bundled FiOS (News - Alert) services to consumers, businesses, government, and wholesale customers, Verizon continues to expand its fiber-optic network. Toward that end, the company recently completed the installation of fiber-optic cables between two critical switching offices in Lower Manhattan, less than seven weeks after Hurricane Sandy.
In fact, in a blog post on “The Montley Fool Blog network” site, Jacob Wolinsky wrote that Verizon (News - Alert) has been trying to take more of the nation’s FiOS market.
Consequently, its overall market share has been increasing since the beginning of the year, despite 4G LTE (News - Alert) growing rapidly. Verizon posted third quarter (Q3) consolidated revenue of 56 cents in diluted earnings per share, compared with 49 cents per share the same quarter in 2011, a 14.3 percent increase. But, the FiOS network, which led to strong overall growth among US customers, has been outstanding.
Verizon added 136,000 new FiOS Internet connections and 119,000 new net FiOS video connections in Q3. As a result, at the end of Q3, the company offered a total of 5.3 million FiOS Internet connections and 4.6 million FiOS video connections, representing year-over-year increases of 14.4 percent and 15.4 percent, respectively. Also, the blogger indicted that the FiOS network propelled consumer revenue will grow by 4.6 percent compared to Q3 2011, the highest year-over-year quarterly revenue increase in a decade.
Despite growth, the number two telecom carrier continues to face competition from proponents of 4G LTE, namely AT&T, T-Mobile and Sprint (News - Alert) Nextel. Hence, as per the blog, Verizon continues to improve its network to maintain the lead.
In fact, to ensure that FiOS network improves its wire line revenue, Verizon has been constantly improving its FiOS network this year. For instance, to enable FiOS customers to watch their favorite professional football teams, Verizon launched online access to NFL network programming.
In addition, Verizon expanded its next-generation 100 Gbps network to enable more network routes in the US and two additional routes in Europe. Plus, the company also took advantage of the fully activated Europe/India gateway submarine system.
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Edited by Brooke Neuman