Analysis: Verizon wireline business 'lags' other providers

Even as management has "done some interesting things with FiOS services," Verizon's (NYSE: VZ) overall wireline business "lags the major wireline operators such as AT&T (NYSE: T), Comcast (NASDAQ: CMCSA) and Cablevision (NYSE: CVC)," a Seeking Alpha analysis has concluded.

Verizon will announce what the analysts predict will be "solid" first quarter earnings April 24 based primarily on conclusions surrounding Verizon's position within the wireless space and "the innovations the management made in the wireline business."

There are, of course, concerns. In wireless, Verizon could see a serious threat from Sprint (NYSE: S), especially if that carrier purchases T-Mobile US (NYSE:TMUS). In wireline, the problem is what Verizon plans to do with FiOS and the oncoming threat posed by Google's (NASDAQ: GOOG) expanded presence with ultra high-speed/TV offers in Verizon markets.

The report found encouraging news in the rollout of FiOS Quantum TV, which offers enhanced DVR features, and the company's willingness to invest in wireline telecommunications infrastructure. Cautions included the belief that "there is significant scope for Google to increase the scope of its backward-integrated operations."

Overall, Seeking Alpha concluded that Verizon will continue to accumulate increased revenue from the wireless and FiOS businesses and will remain a "cash cow" with improving financial performance and position.

For more:
- Seeking Alpha has this analysis

Related articles:
Google Fiber looks for NYC-based sales manager
Analyst: MSOs, wireless carriers should partner to move eyeballs to mobile devices
Verizon amplifies FiOS retention effort with My Rewards+ program
Verizon touts 12 tuners with launch of FiOS Quantum video media servers
Verizon grows California, Massachusetts FiOS footprint to 2.4M homes and businesses


How To Lower the Cost of Ownership of Your Cable Access Network

This white paper presents a cost analysis of a virtualized cable modem termination system (CMTS) deployed in a distributed access architecture (DAA). Learn how to eliminate traditional CMTS constraints, efficiently enhance your network performance and more.

Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

How can we defend ourselves? Mostly, it’s a matter of common sense.

Comcast is planning new data caps and video service price increases for its subscribers in 2021.