Verizon's FiOS TV expansion slows

Verizon Communication is tired of fighting the lengthy and costly legal battles required to gain video franchises, and intends to stop seeking new large markets in which to roll out its FiOS Internet and TV services, according to several published reports. The company still will reach the 18 million households it had planned to reach this year, and is thus portraying FiOS as a project fulfilled rather than truncated.

There could be other unexplained reasons for the winding down of the project. Observers have speculated that the ongoing costs involved in deployment and the slowing of customer acceptance during the recession could have something to do with it. At least one publication, IP Carrier, wondered if the slowdown could have something to do with a possible restructuring related the company related to a potential change in the relationship between Verizon and its Verizon Wireless partner Vodafone.

It was clear looking at fourth quarter 2009 numbers that FiOS TV sign-ups had fallen off their previously robust pace. During that quarter, Verizon added 153,000 FiOS TV customers, down from 191,000 one quarter earlier and 299,000 two quarters earlier. The company has almost 3 million FiOS TV customers overall.

For more:
- The Wall Street Journal has this report
- IT Business Edge has this analysis
- IP Carrier has this theory

Related articles:
Verizon collected 153,000 FiOS TV subs in Q4
Verizon added 303,000 FiOS TV subs in Q4 2008