Verizon predicted that FiOS will generate positive operating income by 2009, as a result of declining operational costs as well as growing revenues. The company expects to invest $18 billion in net capital from 2004 through 2010 in deploying the fiber network and attracting up to 7 million FiOS Internet customers and up to 4 million FiOS TV customers by the end of 2010. By Q4 2006 Verizon projects it will have more than 100,000 FiOS TV customers, two-thirds of which will have discontinued their cable TV service. (Who needs both?) About 80 percent of FiOS TV customers have purchased the triple play--voice, data and video--from Verizon. Monthly churn rates average less than 1.5 percent, which is above company expectations.
Verizon's goal is to reach 20 percent to 25 percent market penetration by 2010, or 3-4 million FiOS TV customers, based on its estimate of 15 million households that will be FiOS ready by then. Upcoming features for FiOS TV include a TV portal, home shopping and interactive broadcasting, gaming, VOD and other multimedia enhancements.
For more on Verizon's FiOS progress:
- see this article from TVover.net