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Thursday, January 22, 2015

FIOS Not Seeing Cord Cutting

Verizon released its fourth quarter earnings, and unlike some cable operators, FIOS grew basic subscribers, an increase in additions over the same period last year.  They also cited an increase in internet subscribers, also larger an increase than a year ago.  On the wireless side of the business, the subscriber base grew as well with an increasing number of customers accessing smartphone capabilities for their cell phones.  

According to Multichannel, "Verizon said it added 116,000 FiOS video customers in the fourth quarter, up from 92,000 in the year-ago period, and tacked on 145,000 FiOS Internet subs, up from 126,000.  Verizon ended 2014 with 5.64 million FiOS video subs, good for a penetration rate of 35.8%, and 6.61 million FiOS Internet subs, for penetration of 41%."

Verizon said it added 116,000 FiOS video customers in the fourth quarter, up from 92,000 in the year-ago period, and tacked on 145,000 FiOS Internet subs, up from 126,000.

 

Verizon ended 2014 with 5.64 million FiOS video subs, good for a penetration rate of 35.8%, and 6.61 million FiOS Internet subs, for penetration of 41%.

- See more at: http://www.multichannel.com/news/technology/verizon-fios-drives-sub-growth-q4/387132#sthash.3SUAx27g.dpuf

Of course the demand on both wired and wireless is for faster speeds and more connectivity across devices.  Verizon clearly needs to invest in additional bandwidth as rivals try to undercut them on pricing.  As to the question of cord cutting, Verizon continues to defy the odds, taking new customers as opposed to seeing overall declines in their yearly base.  Pricing and margins may have to decline in order to maintain that subscriber growth.  Still, given how connectivity has become almost a utilitarian demand by households and individuals, Verizon seems poised to remain the leader in the marketplace. 

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