Verizon to Pass 70% of Its Homes with FiOS by 2015

Verizon to Pass 70% of Its Homes with FiOS by 2015

Verizon’s FiOS fiber network will pass 70% of the residences
in its footprint in the next year or so, not just the 40% we
have been reporting, according to Verizon’s director of media
relations Bill Kula. The FiOS network already passes about 60%
of its residences and is the US’ largest all-fiber network.

It’s like the ninth inning of a baseball game, he said, with
the company maxing out at about 70% coverage sometime in the
next year or so.

Two things have happened since we reported the 40% number:
Verizon has expanded the FiOS footprint and has sold off some
of its copper wire networks to the likes of Fairpoint
Communications, Hawaiian Telecom and CenturyLink.

At the end of Q3 2012, the FiOS network passed about 17.4
million homes and Verizon plans to build it past another
500,000 or so residences by the end of 2013.

The company’s top FiOS broadband offering is 300 Mbps down and
65 Mbps, which is currently just beyond the reach of the
cablecos DOCSIS, although Comcast is offering 300+Mbps, but
only to residences that are within 100 yards or so of its all
fiber Metro Ethernet network, not to residences on its HFC
network.

The five speed bands that Verizon offers over FiOS are:
Download speed in Mbps
FiOS DSL
15 1
50 3
75 7
150 15
300 in selected areas

There are some areas, he said, such as the sparsely populated
areas of eastern Texas’ piney woods, where Verizon does not
offer DSL. Their broadband alternative, he said, is Verizon
Wireless, of which Verizon owns 55%.

Kula pre-denied a rumor that we have never heard, which is
that Verizon plans to discontinue the FiOS service. FiOS now
accounts for 60% of the company’s revenue from its wireline
business, so it’s unlikely that it would discontinue that
lucrative service.

Kula said that many of the residences that are in its upcoming
expansion are in condos (MDUs) such as are found in Florida.
However, offering FiOS to a condo resident means Verizon has
to get the approval of the buildings’ owners, many of whom are
likely to have existing agreements with the local cableco.

Kula also provided these factoids:

November 22-29, 2012
States with FiOS Service: 12, plus District of
ColumbiaCaliforniaMarylandPennsylvaniaConnecticutMassachusetts
Rhode IslandDelawareNew JerseyTexasFloridaNew
YorkVirginiaSubscribers:FiOS TV4.6 millionFiOS Internet5.3
millionPenetration: (customers as a percentage of potential
customers)FiOS TV32.90%FiOS Internet37.00%Premises marketed
to:FiOS TV13.9 millionFiOS Internet14.3 millionFiOS
NetworkPremises Passed:17.4 million
Verizon estimates that by 2015, a bit more than two years from
now, the average US home will have between nine and 15
connected devices. It wants to be ready for the increasing
demands for broadband speeds that they cause, at least in its
all-fiber FiOS network.

Concerning the company’s position on new xDSL copper wire
technologies, Kula said he would find out and get back to us.

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