Monday, July 28, 2008

Verizon FiOS TV Growth Slows in 2Q08

The growth in Verizon's FiOS TV IPTV service slowed in 2Q08. It ended the quarter with 1.382 million FiOS TV subscribers, up 176 thousand from 1Q08. This is the first time that the quarterly growth in FiOS TV subscribers was below 200 thousand since 2Q07. FiOS TV penetration was 19.7 percent at the end of the quarter. FiOS is available for sale to 7 million homes and passes 9.6 million homes.

The dip in FiOS TV growth reflected a dip in FiOS broadband subscribers, adding 187 thousand subscribers in 2Q08 giving a total of 1.974 million FiOS broadband subscribers. This is the first time that the quarterly growth in FiOS broadband subscribers was below 200 thousand since 1Q07. Verizon exceeded 2 million FiOS broadband subscribers in July 2008. FiOS penetration was 23.5 percent at the end of the quarter. Its FiOS ARPU is not more than $130. FiOS broadband is available for sail to 8.4 million homes and passes 11 million homes.

Verizon has made the following changes to its FiOS service recently:
  • It will launch FiOS in New York City
  • It offers a 50 Mbps downstream/20 Mbps upstream service to its entire FiOS footprint
  • It offers more than 100 HD channels
In spite of this slow down, Verizon is doing well with FiOS. I expect that its sales will pick up, especially in 4Q08.

2 comments:

Scott said...

"FiOS is available for sale to 7 million homes and passes 9.6 million homes."

What is the difference between "for sale" homes and "home passed" homes? Why don't Verizon sell to all homes passed?

Bob Larribeau said...

There is typically a delay between when the fiber is installed and when the service is available and when the marketing rollout is performed. You see these lags with both Verizon's FiOS and AT&T's U-verse.

Bob