Verizon Cutting Back On FiOS Roll Outs: A Fiber Dream Dies

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News Posted: Sat, Mar 27 2010 9:57 PM
The recession has a lot of negative effects, but largely, thetechnology industry has continued to flourish. Unfortunately, one ofthe greatest competitors in the Internet industry seems to be scalingback their efforts, and the tough economic conditions are primarily toblame. Verizon made the news in a big way a few years ago, promising toreally add a dose of competition to markets that only had a couple ofISP choices (mostly from cable and DSL providers).

The FiOS Internet service was unique; it provided a fiber-basedalternative that delivered fiber all the way to the home, which enabledusers to purchase speeds well over 100Mbps. Those speeds arepractically unheard of, but FiOS was forcing other ISPs to reallyconsider their offerings. Verizon was able to roll FiOS out to 18 totalstates, with some getting a lot more coverage than others. FiOSprovided Internet, TV and phone (if a customer chose), and all weresaid to be of excellent quality. In fact, the worse problems FiOS gaveVerizon were in the customer service area; demand was so great thatmany offers weren't honored, which generated a good bit of negative PR.



Based on a new Associated Press report, Verizon will be scaling backfuture FiOS roll outs, only completing them in markets that they havepromised service and not adding fiber to any area that's not in thatpool. The company will continue to add fiber to homes in Washington,D.C., New York City and Philadelphia, but some other hopeful cities(like Baltimore and Boston) are now out of luck.

We know fiber expansion is expensive, and Verizon has already spentbillions on the effort, but it's still tough to see an industry leadingculling their efforts. Hopefully DOCSIS 3.0 will flourish in order tokeep those 100Mbps speeds coming to consumers, but if you were countingon Verizon to bring those types of speeds to your router, you canprobably keep on wishing.
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Remember what I was saying about companies evolving forward to provide all in one solutions.

I really doubt this will go away. It will probably evolve into something more segregated to supply multiple: smaller monthly payments until everyone gets used to that. Then they will up the price for the final version.

Once all the PS3's and Xbox's demand more one cable solutions. I am sure we will see this become more and more of the standard for the home solution. Then these companies will figure out how to use the existing cable lines to update the Fiber cables to adapt to the new tech.

It will probably be only a matter of time these companies will have to do something to compete with the current wave of USB G4 units everyone is getting to replace their cable and DSL lines.

I am sure if Verizon is not going to keep up with this, then Time Warner or AT&T will pick up the open markets they leave behind.

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I really hate this recession......!!!!!!!!!!

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ch4dr0x replied on Sun, Mar 28 2010 8:45 AM

Comcast wins; Flawless Victory.

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ch4dr0x replied on Sun, Mar 28 2010 9:26 AM

I submitted this to digg.com for you!

http://digg.com/hardware/Verizon_Cutting_Back_On_FiOS_Roll_Outs_A_Fiber_Dream_Dies

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Inspector replied on Sun, Mar 28 2010 11:22 AM

Well theta il still be doing this for newyork which is all good for me, sorry for those that won't be getting it. I do hope google chooses my area for testin as I would fet that instead! : D

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Kyouya replied on Sun, Mar 28 2010 11:38 AM

I wish we had anything close to FiOS in Canada. However, with the bandwidth quota, it is really difficult to get anything regardless of how fast the connection is. In the end, I rather have unlimited bandwidth with low to average speed than limited quota with FiOS speed.

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3vi1 replied on Sun, Mar 28 2010 1:00 PM

>> Unfortunately, one of the greatest competitors in the Internet industry seems to be scaling back their efforts, and the tough economic conditions are primarily to blame.

This is the same company that said FiOS profits were up 46.7% in 4q 2009, and annual revenue was up 11%, right? The same one that shed $4.4B in debt from their bottom line in 2009?

I don't think this has so much to do with the economy as the fact that it costs them a lot of money to roll out FiOS to new areas (something their investors have been complaining about), relative to the money they are making hand over fist in wireless and other areas.

I thought their annual revenue jumped like $10+B in the last year... so I don't yet understand what, economically speaking, would cause them to scale back FiOS (other than hope of returning their stock price to 2007 levels).  I personally think it's a short-sighted move, but oh well - great news for competing cable companies, I guess.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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Time Warner has recently started offering their own competing service, called "Wideband", which is a little slower and more expensive than FIOS.

Don't wait too long Verizon!

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3vi1 replied on Sun, Mar 28 2010 6:43 PM

gibbersome:

Time Warner has recently started offering their own competing service, called "Wideband", which is a little slower and more expensive than FIOS.

Don't wait too long Verizon!

Hmmm... well I guess that totally gets around any government mandates on "broadband" service and net neutrality.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

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Well living here in Richmond, VA they have been rolling out Fios for 3 or so years now. It is still spotty where you can and can't get it. So if they are cutting back how long do they plan it to take to set up a city? 10 years +?

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AKwyn replied on Sun, Mar 28 2010 10:25 PM

It's a shame how bad customer support and bad PR can slow down a dream.

At least the cities mentioned are still getting FiOS. Verizon needs to get their *** together.

 

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Inspector replied on Sun, Mar 28 2010 11:05 PM

Bob, same here in Brooklyn NY. I'm still waiting for them to set it up in my area. My cousin already has it! :( if they take 10+ years i bet google can bet them to it :P lol

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Dave_HH replied on Mon, Mar 29 2010 8:59 AM

ch4dr0x - We would rather you not submit to Digg unless you have a strong account and presence in the community there.  You won't get enough votes on your own to give it a chance.  By all means though, when you see something is submitted already, please digg it up.  Thanks!  Smile

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la_guy_10 replied on Mon, Mar 29 2010 4:00 PM

No affect here as we only have Cable and DSL but for those in the market this is a bummer for sure. I hope one day to get fiber here where I live, as 100mbps is more than a home user could ever need.

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Inspector replied on Mon, Mar 29 2010 4:17 PM

I need the extra speed for gaming :P lol, im sure some home users will use all that speeds and complain they need more :P lol

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