Is Verizon too cheap or is fiber too expensive?

Rich Fiscus
18 Jun 2008 1:06

Verizon's FiOS has been marketed largely on the premise that running fiber to each building is the best way to build a network for the long term. Since the company is apparently preparing to boost the top download speed for many of their subscribers it seems somewhat odd that they're also talking about going backwards and using old fashioned copper for some new customers after 2010.
Both of those appear to be true though, and surprisingly not necessarily in conflict with each other. Although it's not official yet, Verizon is apparently on the verge of announcing that subscribers to Verizon's top service tier will see their download speeds increase from 30Mbps to 50Mbps in many of the 16 states they service.
That's the same speed already offered in a few states so it makes sense to bring it to everybody. Lower price plans are expected to see increases to 20Mbps and 10Mbps from 15 and 5 respectively.
So if they're increasing speeds what's with the talk of using copper for some future expansion? Basically it's a question of economics. So far Verizon has been able to stick with fiber because they're sticking to urban and suburban areas.
The problem comes when they decide to move into more rural areas. Running fiber gets much more expensive a the amount of cable per customer increases, which is exactly what they face in rural areas. It's the same reason rural areas tend to have fewer options for internet service now.
While it would be nice to see Verizon stick with fiber for every customer without exception, if they can deliver something faster, cheaper, and more reliable in areas where choices are limited right now it still has to be an improvement.

More from us
We use cookies to improve our service.