Update: Added several East Coast states that got FiOS in recent months. See addendum below.
—————————-

Verizon’s FiOS TV service continues to grow, but not quite as fast as it used to.

From July to September, 191,000 people signed up to get TV service from Verizon FiOS, bringing the number of subscribers to the cable TV alternative to 2.7 million nationwide, according to the company’s third-quarter financial report this morning.

But 191,000 is about a 33 percent decline from the most recent quarter. Even compared to Verizon’s year-ago quarter, the number is lower. The last time Verizon’s net new customers didn’t break the 200,000 mark was in the second quarter of 2008.  Is Verizon’s FiOS TV service losing steam?

The growth rate decline was a big letdown. Sanford Bernstein, and analyst with Craig Moffett, called the drop in FiOS growth rates a “clear disappointment,” according to the Associated Press report. Wall Street had expected growth of 253,000 net new customers.

By comparison, AT&T said last week that its U-verse TV service added 240,000 customers during the quarter. Both U-verse and FiOS are offering TV services to compete with local cable companies.

Here’s a comparison chart of the growth of FiOS TV:

2009:

At least Verizon is making more money per customer. The average revenue per user was up 12.6 percent from the prior year as more customers signed up for triple-play bundles of TV, Internet and phone service.

During the third quarter, Verizon said the number of households that can order FiOS TV or Internet service grew to 14.5 million premises, which is 45 percent of people living in Verizon territory. Its goal is 70 percent.

A year ago, FiOS was available to 9.1 million users. Verizon has said it plans to build FiOS in areas where its telephone network already exists before expanding outside its territory. Its FiOS reach is on track to reach 15 million by the end of the year.

While the fledgling FiOS TV service continues to grow, many of us here in Orange County know that FiOS is difficult to find. Verizon offers the service in Brea, Cypress, Fountain Valley, Garden Grove, Huntington Beach, La Habra, La Palma, Los Alamitos, Seal Beach, Stanton, Westminster and certain unincorporated areas. (Get more information about FiOS in Orange County HERE.)

But TV and Internet is not available in all parts of these cities. In fact, Verizon said earlier this year that it was concentrating on areas where the company has built its fiber-optic network already and will target households in those neighborhoods. Expansion was put on hold here as the company went all out on the East Coast (see earlier story, “Verizon’s FiOS TV rollout slows in So Cal“).

Addendum: Based on this comment, I should clarify that by East Coast, Verizon really pushed FiOS in New York and New Jersey over the spring and summer. More recently, it expanded into Maryland., Delaware, Virginia, Rhode Island, Massachusetts, Washington D.C., and Pittsburgh, Penn. During that same time, the company announced expansions into Rancho Cucamonga and Fontana, Calif.

I’m awaiting an update about FiOS in Orange County and will add a link here when I get it.

As a whole, Verizon’s net income fell 9.8 percent from the prior year to $2.9 billion. Revenues rose 10.2 percent to $27.3 billion. A lot of growth came from its wireless division, which ended with 89 million customers, up 25 percent from last year. Wireless revenues were up 24.4 percent from a year ago to $15.8 billion.

For a closer look at Verizon’s results, here are links to the news release and its presentation.

From the web:

• Verizon’s FiOS Numbers Disappoint (PaidContent.org)
• Verizon profit dips, but wireless stays strong (C/Net)
• Verizon profit falls 30 percent on restructuring costs (AP)

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.