Historically, Verizon (VZ) has held it’s FiOS FTTH subscriber numbers close to the vest, and has not provided detailed information about penetration rates or success metrics. Today, they opened the kimono.
Here are the highlights:
Verizon has now put a solid stake in the ground by which investors can judge ROI and market success. While much of the above news is not new, I expect Verizon will provide updates with this granularity on a quarter by quarter basis.
It’s clear to me that Verizon is totally committed to cannibalizing it’s copper plant and DSL customers. It is refreshing to see such a large company aggressively deploying new technology, particularly going against the grain of short-term oriented Wall St. thinking. I use the FiOS service at home, and it is remarkable. (See my install notes here)
Verizon, more than any other company in the world (with the exception of NTT), has evolved the corporate DNA to deploy last mile fiber cheaply and make it work. It will be interesting to see the impact if (when?) they decide to apply this expertise to business customers. This could have a stunning effect on competitive telecommunication providers, as Verizon would not be forced to lease their new optical right-of-way, and competitors would be forced to use a deteriorating plant, maintained by Verizon, and all additional costs passed on to the lessee.