Verizon To Sell FiOS Markets In 11 States, Focus On Wireless

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News Posted: Wed, Apr 7 2010 12:06 PM
So now it begins to make sense. Last month, Verizon announced that theywould be winding down their FiOS deployment, with costs already in thebillions and an ISP market that's becoming increasingly competitive.All told, 18 states have (or soon will have) FiOS, and soon, it lookslike 11 of them will be handed off to someone else.

Verizon has spent a great deal of time, energy and effort in marketingFiOS and getting it into as many homes as possible. But it seems likethe best move at this point is to cut ties and sell out. Now, it lookslike a deal is in the works to sell FiOS markets in 11 states, with thereason being that they're looking to "narrow focus to fast-growingwireless and high-speed Internet businesses." Frontier Communications,a CT-based company, is set to buy Verizon's phone and cable lines inthe Northwest and elsewhere for $5.3 billion in stock, with Verizonreceiving an additional $3.3 billion derived from assets being sold.



All told, Frontier will acquire around 4.7m phone lines (nearlytripling the size of their current holdings), but of course Verizonwill hold tight to their wireless business. What's interesting here iswhat the future could hold for Verizon Communications as a whole. Willthis enable Verizon to jump to LTE faster in the wireless space? Willother U.S. carriers need to fear seeing a Verizon map with 100% 4Gcoverage over America? It's hard to say now, but you can bet we'rekeeping our fingers crossed. Now, if only that iPhone would go aheadand jump over...
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rapid1 replied on Wed, Apr 7 2010 1:11 PM

This makes more sense to me. I was kind of perplexed when i heard they were cutting back on the Fiber Optic roll outs. I also think they need to be watching what there doing as far as 4G coverage. Sprint specifically is gaining a good bit of market recognition solely because they already have it, and the HTC 4G Beauty of a phone is rolling out on it pretty soon.

4G as a focus I think at least to me thinking as a business manager would be recognized as the biggest thing in communications right now. It has already been shown that mobile internet access actually surpassed stationary access last year. Therefore; I think it is and will be the largest market now and in the coming months of this year and next, from a consumer point of view.

That means business wise if your not on that train you will hurt you business to some degree, and the slower you get on it the more it will negatively impact it. I see Sprint gaining some market share here. How considerable that is remains to be seen in reality, but often the first successful implementer of new communications capabilities is the biggest winner.

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nickb64 replied on Wed, Apr 7 2010 1:52 PM

This is interesting, as I was looking into getting FiOS where I live.

I wonder if my area is one where it is being sold?

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Kyouya replied on Wed, Apr 7 2010 7:14 PM

Now, this is a great idea. By selling their lines to resellers, they will be able to profit their investments without having to put additional cost to software maintenance. The only thing they would be accountable for is the physical maintenance. I'm on a reseller line myself since I refuse to be in a Rogers or Bell line that has a bandwidth quota. My connection is unlimited as long as I don't abuse it which bodes well for me.

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So they are selling their FiOS in 11 places to other companies? that what i kinda got out of this xD

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3vi1 replied on Wed, Apr 7 2010 7:50 PM

>> But it seems like the best move at this point is to cut ties and sell out.

Cut its throat and sell stock, they mean. This was pretty much expected given their last quarterly earnings showed huge profits in wireless and huge costs in FiOS deployment.

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

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I don't know... the better their service and network the more they are going to charge. I want some competition for the best network coverage.

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our local TelCo has been laying Fiber for awhile now. just wish there were more competition in the area

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What are the other states???

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"it looks like a deal is in the works to sell FiOS markets in 11 states, "

Verizon is NOT selling FiOS markets in 11 states to Frontier. There are only 4 states(with any FiOS customers) out of the 14 states that Verizon is selling to Frontier. Only transferring FiOS customers are: Fort Wayne(Indiana), suburban Portland(Oregon), suburban Seattle(Washington), and some non-video FiOS customers in South Carolina. 69,000 video FiOS customers are involved in the 3 locations above.

List of 14 transferring states, with NO FiOS involved in this sale, are: Arizona, California(only some parts near borders w/AZ, NV, OR), Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, Wisconsin, and West Virginia. This involves about 4.8 million access lines.

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HJM13 replied on Thu, Apr 8 2010 9:46 AM

Harry Mitchell from Verizon here. This post unfortunately contains several major errors; here are some facts:

First, Verizon’s transaction with Frontier Communications involves 14 states, only four of which (thanks, Bob61571) have FiOS services.

Second, Verizon offers FiOS services in 16 states (12 after the Frontier transaction closes).

Third, while it’s certainly true that Verizon is focusing on wireless, FiOS remains a critical component of Verizon’s business moving forward. CEO Ivan Seidenberg put it this way in the May 13, 2009, release announcing the Frontier transaction (http://newscenter.verizon.com/press-releases/verizon/2009/verizon-to-divest-wireline.html): “This transaction is an attractive way to add value through a special distribution to our shareholders. Longer term, this transaction is part of our multiyear effort to transform our growth profile and asset base to focus on wireless, FiOS fiber-optic services and other broadband development, and global IP. All of Verizon’s remaining local landline operations have high concentrations of FiOS in more densely populated markets. We believe our focus on reshaping our asset base will drive higher growth over time and improve long-term returns.”

Fourth, FiOS is a rockin’ service. As a new competitor in the TV market, our strategy has been two-fold: open new markets and make our services available to more customers in existing markets. That’s just what we’ve done. We’ve built a fiber-to-the-home network that currently reaches more than 15.4 million homes and small businesses. Now, in 2010, we’re on track to complete our stated goal of passing about 18 million premises.

At the end of 2009, we had 3.4 million FiOS Internet customers and 2.9 million FiOS TV customers. That’s a national penetration rate of 28 percent for FiOS Internet and 25 percent for FiOS TV – a very healthy growth clip for a service that we began selling from scratch nearly five years ago. That makes us the 8th largest among cable and satellite providers, some of whom have been in the business for decades.

As we move forward this year, we’re focusing on building our fiber-based network and increasing FiOS availability in those areas where we already have video franchises in place.

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Its great to see that we are joined by representatives of the respective companies that we rant about :)

Sites like this are probably better and cheaper than any Market study. Lets just hope like Domino's They hear us.

Personally I love Fiber optics. Whether it is in my Models(for lighting) or My Toshlink for all the Home Theatre connections. I may imagine it, But I hear a big difference between the sound of an HDMI cable and a dedicated FO cable when decoding THX/DTS-EX.

If we are to go to an All-in-One solution. I would like to see these companies stop wasting Billions on Superbowl adds, and famous corporate spokespersons. And pass that savings on to the customer .

I feel that everyone would like to have no more Cable HD/TV bill, Home phone Bill, Cell phone Bill, WiFi G4 Bill, or even satellite radio bill?

Just give us one Bill of about $60 a month for everything, with good customer service and everyone will be signed up!:)

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It is nice to hear that HJM, i would be waiting for you guys to roll out in my area :D. I want to wait for Google to get their service out but i got no clue when that will be so for now im waiting for fios!

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