For Verizon, Fiber (FiOS) is the story

Given a choice between fiber-based broadband and DSL, people tend to opt for the former. Or that seems to be the lesson one can learn from the second quarter earnings reported by Verizon yesterday. Even as its DSL-subscriber additions tanked, Verizon saw a sharp uptake in the demand for its fiber connections.

The company added 203,000 FiOS broadband customers, out of a total of 288,000 in the second quarter of 2007. At the end of the second quarter, Verizon had a total to 1.1 million FiOS customers. In a conference call with analysts CFO Doreen Toben said that about 22% of the new FiOS broadband subscribers are customers who have upgraded from Verizon’s DSL service.

ftthsubscribersworldwide.gif

Fiber-based broadband is what today’s customer really wants – and not just the Verizon customer. Globally there has been increase in the number of fiber-based broadband connections. There will be about 57 million fiber connections globally by 2010, according to UBS Research, a healthy 12% of the total broadband subscriber base of 474 million estimated for that year.

At present China leads when it comes to fiber-to-the-home (FTTH) connections with 47% of the total market, followed by Japan (35%), and Korea (8%). US is estimated to have 3% of the global FTTH subscriber base, with Verizon accounting for little less than 1% of total worldwide FTTH connections.