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Average Verizon FiOS bill is $135; TV service still growing

July 27th, 2009, 8:20 am · 6 Comments · posted by

Verizon FiOSIt’s earnings time and the little factoids we glean from the  TV companies’ reports are whether they grew, didn’t grow, and by how much.

Verizon, which reported this morning, said its FiOS TV and Internet service grew. Surprised? Well, here in certain parts of Orange County, the company’s roll out of its fiber-optic TV and Internet service seemed to be at a standstill (see the earlier, “Verizon’s FiOS TV rollout slows in So Cal“). Verizon confirmed that much, although its take on slow down was that we here in O.C. were among the first and fastest to get the FiOS services. Growth efforts are now being concentrated elsewhere.

The company added 300,000 net new FiOS TV customers and 303,000 net new FiOS Internet customers. That brings FiOS numbers to 2.5 million TV users, up 82.1 percent from a year ago,  and 3.1 million Internet users, up 51 percent from a year ago.

While the service has taken a long time to get up and running, FiOS is definitely a way for Verizon to boost revenues. The average customer bill was $135, or nearly double the average Verizon customer.

Verizon FiOS grew in the second quarter 2009.The other interesting note in Verizon’s second-quarter earnings report is sales penetration, which is how many households in an area that can order FiOS actually do. In areas with FiOS Internet, penetration rates were at 28.1 percent by end of June, compared to 23.5 percent a year ago. Overall, 11 million premises can order FiOS Internet.

As for TV penetration, rates jumped to 24.6 percent, compared to 19.7 percent a year ago. Overall, 10.3 million premises can order FiOS TV.

Verizon began offering FiOS TV and Internet to 650,000 new homes during the second quarter for a total of 13.8 million premises or 43 percent of its wireline customer base.

With numbers in the 20 percent to 30 percent, the majority of residents are still opting for a different TV service. It may be hard for some FiOS lovers to understand why. Since FiOS gets to homes via fiber optic cables, the company can offer more channels and uncompressed high-definition video. Its Internet service offers upload speeds of up to 20 megabits per second and download speeds of 50 mbps.

Verizon believes that when it unveils new FiOS neighborhoods, the competing cable TV company scours neighborhoods offering better deals to keep customers from switching. Hence, instead of expanding, Verizon is concentrating on areas where FiOS service is available, like Seal Beach, to get penetration rates higher.

While FiOS is taking off, older technologies are in decline. FiOS helped offset Verizon’s losses in the DSL Internet users, which fell by 117,000 customers during the quarter. But that is apparently not enough to save its older wireless business. Bloomberg News is reporting that the company plans to cut 8,000 jobs in its wireless division by the end of the year.

More TV earnings news:


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Posted in: Video & TV
 
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 6 Comments

  • Roger says:

    For me, Time Warner was charging me the same rates as FIOS. With FIOS I get so many more channels and faster internet. How can I not switch!?!? bye…bye….cable!

  • Kingo says:

    PLEASE come to RSM!

  • goodbye TW says:

    Bye bye TW. I switched to Fios. It is awesome.

  • Thieves says:

    We’re getting robbed blind.
    We just got back from France, and with Free.fr, we got DSL internet access, telephone with free calling even to the U.S., 150 channels of Hi-Def TV, and a DVR all for $25 Euros a month (about $35 at the exchange rate).
    When is the U.S. going to catch up to Europe?

  • Spence says:

    That’s a lot of money to watch 12 minutes of content and 15 minutes of commercials followed by more garbage. Paying for TV is a ripoff! They fill the cable box or satellite box with garbage and then expect the user to pay for it and the advertiser to pay for it. In the end, the consumer pays for it twice. It’s a big scam and that’s all it is…… And people wonder why they can’t afford to pay for TV, movies, Disneyland, video games and DVDs. How far does Hollyweird think the dollar can be stretched….????

  • jon says:

    full of crap

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