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Verizon's FiOS is making cable companies nervous

24 October 2007 22:07 by Rich "vurbal" Fiscus | 29 comments

Analyst David Barden predicts that Verizon's FiOS network, which launched two years ago and now boasts growth of more than 10,000 customers in an average week, will have two million customers by year's end.

Although cable companies didn't take Verizon seriously when they first announced the service, no one is laughing any more. "Verizon is real," Steve Burke, Comcast Corp's chief operating officer, said last month at an investor conference. "Verizon is taking video customers from us."

FiOS may represent the most serious challenge yet to the dominance of cable companies for television and high speed internet customers. While cable companies have been able to hold on to internet customers and also gain market share as phone providers, traditional phone companies have been less successful with DSL and video offerings. Based on current and projected sales figures, Verizon is likely to break into the top 10 television providers, behind 6 cable companies and 2 satellite television providers.

With their non-traditional all fiber approach Verizon has some definite advantages over traditional cable television services. Not only does their pure fiber connection offer more bandwidth for everything from TV channels to internet uploading and downloading. The company also offers unique DVRs that can send recordings to different televisions.

Since they operate on a national scale, Verizon has the ability to completely alter the television and consumer broadband internet markets. In fact right now, their biggest concern is the cost of connecting customers and supplying channels, both of which cost significantly more than what cable providers pay.

Source: Wall Street Journal

Permalink to this article

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Discuss this article!	There are more user comments available, read them here
borhan9 (AfterDawn Addict) 25 October 2007 1:16
Well all i can say is i am glad that they are giving the rest something to think about b4 anything else. [ + quote]
theridges (AfterDawn Addict) 25 October 2007 2:31
Yep i have been waiting for them to come to orlando and do there thing...right when they come here im making the switch to the 15/2 ASAP. [ + quote]
salsa36 (Junior Member) 25 October 2007 9:25
Fios is so fast, it's really incredible, many times faster than cable. Comcast needed good competition......... [ + quote]
rosedog (Member) 25 October 2007 10:06
*Originally posted by jemaric:* i wish verizon was on the west coast Huh? They are, FiOS is already in my neighboring town and should be here by years end. Washington State y'all However it still doesn't change the fact that I HATE calling them. [ + quote] This message has been edited since posting. Last time this message was edited on 25 October 2007 10:07
dikdimond (Member) 25 October 2007 11:08
I'm hoping that Ohio gets on this sometime soon. I'm thirsty for more speed!! FiOS is the future,and Ohio is always behind in economic growth and modern technology. [ + quote]
benbnk (Newbie) 25 October 2007 11:35
Would like to see Verizon take on Comcast here in south Mississippi. [ + quote]
shagg (Newbie) 25 October 2007 12:48
Verizon should make Comcast and Brighthouse networks very very nervous. I'm in Tampa and have had FIOS since its introduction. The TV and Internet service is awesome. Their VOIP service is still too expensive compared to other companies like VOIP.com. [ + quote]
DarkJello (Senior Member) 25 October 2007 12:52
The biggest improvement I noticed when switching at home from cable to FiOS was signal degradation was no longer a problem. With cable you could noticeable tell when there were more people watching TV/using the internet, especially in a loss of picture quality noticeable even on standard definition TV's. I'm happy with the change, even though Verizon is trying to charge us for setting up all of the computers we had in the house, when they only set up one, getting that fee taken away is proving to be a royal pain in the arse. [ + quote]
mlsgiant (Newbie) 25 October 2007 12:55
I got Verizon FIOS here in Philly, PA. It kicks ***. Screw Comcast. People in this area weren't willing to switch to other providers such as satellite because the local sports channel (Comcast Sports Net) was only available to Comcast Cable Subscribers. But Verizon struck a deal and now carrys the channel. Interesting to add here is that Comcast right now is building the biggest skyscraper in Center City Philadelphia. When I was getting FIOS installed the installer told me that getting the deal to carry the sports channel was if Verizon would buy floor space in the new Comcast One Tower! Interesting? Could I smell future merger??? [ + quote]
saltynuts (Inactive) 25 October 2007 13:44
*Originally posted by mlsgiant:* I got Verizon FIOS here in Philly, PA. It kicks ***. Screw Comcast. People in this area weren't willing to switch to other providers such as satellite because the local sports channel (Comcast Sports Net) was only available to Comcast Cable Subscribers. But Verizon struck a deal and now carrys the channel. Interesting to add here is that Comcast right now is building the biggest skyscraper in Center City Philadelphia. When I was getting FIOS installed the installer told me that getting the deal to carry the sports channel was if Verizon would buy floor space in the new Comcast One Tower! Interesting? Could I smell future merger??? i live in philly in the germantown section of the city and they tell me i cant get fios yet what part of philly do you live in.because comcast is getting on my last nerve with my bill going up every couple of months this is bullcrap. [ + quote]
dikdimond (Member) 25 October 2007 14:16
^^^^ And Time-Warner does the same thing,it's only been a year since they officially took over from Adelphia in my area and they raised the pricing 2-3 months ago [ + quote]
bratcher (Senior Member) 25 October 2007 16:02
In Houston we have Comcast (formerly Time Warner) and AT&T's Uvers is slowly being deployed. Verizin FIOS? Forget it as it's no where in sight. If Fios ever came to my area I'd leave Comcast in a heartbeat just to get that 15 MB's internet speed. Versizon is offering 30 & 100 MB's in some areas. I wish I had that kind of of speed for my internet connection!! [ + quote]
eLeCTR0n (Member) 25 October 2007 19:47
i cant wait till they're available in my area. should be next month :) [ + quote]
joecable (Inactive) 25 October 2007 20:27
Folks, I live in Middleboro Massachusetts, have Comcast internet and FIOS is available in my town. In order to be competitive with FIOS, Comcast has increased my speed and I get twenty meg's down and two meg's up. NO price change. All I had to do was power cycle my modem. Try it and if this is not true in your town, call Comcast and ask why. Couple of facts. Ingress degrades signal quality. Roughly seventy five percent (roughly) of all ingress occurs inside the home where FIOS uses coaxial cable just like Comcast. Folks, you really won't notice much difference in video quality with FIOS. And you DO need to rent a set top box (in many cases the exact same box used by Comcast) for every tv because it is all digital, no cable direct tv's! At least with Comcast you can have a few boxes for the livingroom and bedroom and no need to rent a box for the kitchen tv (example, less used tv's) because Comcast has an analog/digital simulcast. And with FIOS you commit to a one or two year contract with early termination fees. Comcast has no contracts. I'm sure FIOS is a good product. Comcast is plenty capable of competing in quality and price. [ + quote]
lmanlo (Newbie) 25 October 2007 23:23
What is FIOS? Just want to know. How do you get FIOS? I'm with Verizon Wireless but don't really know about this feature. Can someone explain it good to me to understand. Thank You [ + quote]
svtstang (AfterDawn Addict) 26 October 2007 0:23
Simply put, it is a fiber optic connection. Verizon has not implemented the technology in a lot of places yet, google fios + your area and check availability. The price increase from middle of the road cable connections is negligible and the speeds are insane....15/2 connection...yes please :) [ + quote]
DADEO1 (Member) 26 October 2007 1:34
What ? [ + quote]
JOHNSTARR (Senior Member) 26 October 2007 2:00
I've been dreaming of a fios connection for quite awhile but it looks like I will have to settle using a seedbox cause my primary connection sux azzz. It's gotta feel like hitting the lottery if it's available in your area :( XBOX 1.4 Zenium Gold SP Solderless Maxtor 300 GB PREMIUM 360 IXTREME 1.2 [ + quote]
svtstang (AfterDawn Addict) 26 October 2007 3:04
*Originally posted by DADEO1:* What ? That aimed towards me? If so, I will dumb it down: Da speedz b real fast! ;) [ + quote]
mlsgiant (Newbie) 26 October 2007 3:31
*Quote:* *Originally posted by mlsgiant:* I got Verizon FIOS here in Philly, PA. It kicks ***. Screw Comcast. People in this area weren't willing to switch to other providers such as satellite because the local sports channel (Comcast Sports Net) was only available to Comcast Cable Subscribers. But Verizon struck a deal and now carrys the channel. Interesting to add here is that Comcast right now is building the biggest skyscraper in Center City Philadelphia. When I was getting FIOS installed the installer told me that getting the deal to carry the sports channel was if Verizon would buy floor space in the new Comcast One Tower! Interesting? Could I smell future merger??? i live in philly in the germantown section of the city and they tell me i cant get fios yet what part of philly do you live in.because comcast is getting on my last nerve with my bill going up every couple of months this is bullcrap. [ + quote]
Mez (Senior Member) 26 October 2007 7:14
In DC Comcast is so bad they have taken away the ability to sue. In one of our bills there was a note that if you did not vote no at a particular web site in 30 days you would not be able to take action against them in case of a real problem. This week a women found another way to get back at them. She had been visiting customer service every day for a week without satisfaction. The last day she put a large hammer in her purse and put it to good use. She smashed their computers. I have never paid full price for Comcast. It is not worth it. I always sign up for their deals then cancle when the rate goes up. After a week or so they offer the same rate again $19/month per service. The last time they offered me $30/month for internet for a year before I could cancle. They make money hand over fist at $19/month. They figure you all don't care if they just tack on an additional 20-80 bucks a month. [ + quote]
joecable (Inactive) 27 October 2007 1:24
*Originally posted by Mez:* In DC Comcast is so bad they have taken away the ability to sue. In one of our bills there was a note that if you did not vote no at a particular web site in 30 days you would not be able to take action against them in case of a real problem. This week a women found another way to get back at them. She had been visiting customer service every day for a week without satisfaction. The last day she put a large hammer in her purse and put it to good use. She smashed their computers. I have never paid full price for Comcast. It is not worth it. I always sign up for their deals then cancle when the rate goes up. After a week or so they offer the same rate again $19/month per service. The last time they offered me $30/month for internet for a year before I could cancle. They make money hand over fist at $19/month. They figure you all don't care if they just tack on an additional 20-80 bucks a month. That is ridiculous. How is it that you think you know what the fair market price for what their service should be? How do you figure 20-80? You don't know what your talking about. Everyone wants everything at a price they decide. We live in a free market. Comcast offers their service at a competitive price, key word being competitive. Go find a service for your 20-80 less, I guarantee you won't get the same level of service. Such a sense of entitlement. Stupid. Nothing's cheap these days, maybe your better suited for dial up. You have a beef about the vote though, I've never heard of that. But I guarantee you are exagerrating in some way. Everyone just loves to hate the cable company. It's been this way for years. Competition is good, but as they say the grass is always greener.... [ + quote] This message has been edited since posting. Last time this message was edited on 27 October 2007 1:38
fonzbear (Newbie) 27 October 2007 5:40
sadly, i live in qwest terrority and because of laws and other crap, wherever qwest has DSL, version FIOS can NOT compete! [ + quote]
pryme_H (Senior Member) 27 October 2007 13:07
This is great for customers! This will bring competition to other cable companies. Hence, preventing cartel... [ + quote]
lsn2this (Junior Member) 1 November 2007 15:56
Hey fios,take it nation wide A.S.A.P.!! Comcast Blows~! [ + quote]
FBerfle (Newbie) 1 February 2008 23:20
*Originally posted by mlsgiant:* I got Verizon FIOS here in Philly, PA. It kicks ***. Screw Comcast. People in this area weren't willing to switch to other providers such as satellite because the local sports channel (Comcast Sports Net) was only available to Comcast Cable Subscribers. But Verizon struck a deal and now carrys the channel. Interesting to add here is that Comcast right now is building the biggest skyscraper in Center City Philadelphia. When I was getting FIOS installed the installer told me that getting the deal to carry the sports channel was if Verizon would buy floor space in the new Comcast One Tower! Interesting? Could I smell future merger??? This is total ignorant crap. Comcast occupies 100% of the new tower, which it does not own but simply leases from a real estate investment company. It hasn't offered a square inch to anybody except its own staff and that of the companies it has acquired since the tower commenced construction. The idea it would put Verizon (which is HQ'd in NYC, not Philadelphia) in the middle of the henhouse is so ludicrous it defies even elementary logic. Quit spreading unfounded speculation. [ + quote]