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Summary:

Verizon Communications reported fourth-quarter earnings this morning (see here for all the details), and it looks like FiOS is gaining momentum. The company added 303,000 FiOS TV subscribers in the fourth quarter and almost 1 million in 2008, bringing the total to 1.9 million out of 9.2 million […]

Verizon Communications reported fourth-quarter earnings this morning (see here for all the details), and it looks like FiOS is gaining momentum. The company added 303,000 FiOS TV subscribers in the fourth quarter and almost 1 million in 2008, bringing the total to 1.9 million out of 9.2 million homes that have access to the service. In contrast, AT&T is hoping to have 1 million subscribers to its rival IPTV offering, U-verse, by the end of the year.

On the data side, Verizon said 282,000 homes added FiOS high-speed data in the fourth quarter, and almost 1 million added it in 2008 for a total of 2.5 million subscribers out of almost 10 million homes passed. Those additions helped make up for losses in Verizon’s DSL business, which lost 68,000 DSL-based connections in the most recent three-month period after losing 96,000 during the previous quarter.

Verizon’s consumers also continued to drop their landline telephones, but not as rapidly as some had feared. In the fourth quarter, Verizon lost 3 percent of landline subscribers, up slightly from the 2.8 percent loss in the same period last year. In 2008 Verizon lost 12.2 percent of its landlines leaving 20.96 million still connected; it lost 10.8 percent of them in 2007.

The wireless business did well in the most recent quarter, adding 1.2 million customers as compared to 2 million added in the same period last year, and turning in $11.1 billion in service revenue, up 12 percent from the same period in 2007. I’ll go into more detail on how wireless data is faring during the recession tomorrow after AT&T reports its most recent quarterly results.

  1. How are they “losing” DSL subscribers? Seems like people are just upgrading to FiOS. Same with landline, they’re just switching to mobile phones, which cost more. Verizon should be happy even if the VP of copper wiring is not.

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  2. [...] Verizon’s consumers also continued to drop their landline telephones, but not as rapidly as some had feared. In the fourth quarter, Verizon lost 3 percent of landline subscribers, up slightly from the 2.8 percent loss in the same period last year. In 2008 Verizon lost 12.2 percent of its landlines leaving 20.96 million still connected; it lost 10.8 percent of them in 2007. (Gigaom) [...]

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  3. I am not surprised that people are letting their landlines go. Everyone relies on their cell phone these days. One day our children will ask us what was a landline. Old news. A pretty decent quarter overall for Verizon FiOS.

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  4. its nice to see that FIOS is doing well – and capturing a decent market share. Hopefully they will hurry up and offer the service to the rest of us. Its annoying to know that its available less than 20 miles away and they haven’t yet brought it to you.

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  5. we switched to verizon fios in march 2007 we had problems verizon sent service peeps out to fix we were told that the problem was not fios, but our inside equipment verizon service tech helped rewire inside phones, we bought new equipment still had same problems verizon continued to assert that the problem was in our equipment what were we to do we could not prove that fios was not working properly reps had done in-house testing and stated fios was working properly flash forward to summer 2008 we were still having same problems in august we flat out could not dial to a government office, but our customer could he called my husband stupid for not being able to work the phone we called verizon they ran in-house test said they were not sending tech to our location there were no signs of problems on verizon side verizon said it was still our equipment rep told me to go out to the outside box and plug the phone in and see if there was a dial tone. . . if there was a tone, phone was working fine i asked if i should try to make some calls from outside box rep said you can’t do that tech do it all the time we had a tone, but guess what. . . . . could not make calls. . . i tried begrudgingly verizon rep said that a tech would be dispatched tech could not call anyone either long story short. . . . . the fios software was not working. . . . for 18mnths. . . .this is our business we are talking about . . . . our income is off by $25,000.00 for 2008 verizon gave us a refund for the phone service from march 2007 to august 2008 we are still out a good deal of income verizon still uses these in-house test that the techs all said are worthless as they show false results

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  6. i forgot one thing . . . . . we switched back to land line fios internet service seems fine

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  7. [...] Verizon and AT&T, they announced earnings this week that reveal that DSL and landline users are being cannibalized by their FIOS and U-Verse systems, respectively. Both systems are picking up a lot of video users, [...]

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  8. Like Diane, I had problems with the service at first. To their credit they were very accommodating, and gave me a service credit (I had to ask). Once things were ironed out the service turned from a headache into a balm: I love my FiOS.

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  9. [...] you will accept from a cell phone in terms of lost connections and dropped calls. Reliability is not keeping us tethered to our landlines by any stretch of the [...]

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  10. I’m not actually surprise with the report, the trend nowadays is mobility. And I guess their telephone service subscribers didn’t drop rapidly as other competitors are because the way I see it, they have a good service offering bundled with their other FiOS services.

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