Verizon to stop building out its FiOS infrastructure

If you were near an area where Verizon was serving customers with its fast Verizon FiOS broadband Internet service and hoped that the company might expand to serve your region, you may be out of luck. The Washington Post reports that the company has decided to stop expanding and building on the infrastructure of its FiOS business. The process will take about two years to complete.

Launched in 2005, Verizon FiOS has given its customers one of the fastest broadband Internet services in the US and was one of the first to offer fiber-based Internet services directly to residential homes. It also offers not only fast download speeds (up to 150 Mbps) but also very quick upload speeds of up to 35 Mpbs, depending on the type of service. It currently has about 3.8 million customers.

In remarks made during the UBS Global Media and Communications Conference in New York on Wednesday, Verizon's Chief Executive Lowell McAdam said that while the company won't be expanding the FiOS business any further beyond the two years it has already planned to do so, it will be maintaining the areas that currently have the service available to them. It will also "rigorously promote" FiOS in the service areas where it competes with other cable TV and Internet companies.

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Well I live in Cheektowaga and it seems like everyone around me, including many in the city, have Fios. I have DirecTV for tv and time warner for internet. My sideband is supposed to be 50MBs and I still out at around 5. Fios is supposed to be rock solid at the speeds they advertise.

I seem to be in a tiny pocket of the Buffalo area that doesn't have Fios yet. I wonder if that means I'll never see it. Time Warner Wideband is a huge disappointment.

patseguin said,
I seem to be in a tiny pocket of the Buffalo area that doesn't have Fios yet. I wonder if that means I'll never see it. Time Warner Wideband is a huge disappointment.

I live in a suburb around Buffalo, NY, and Verizon, as far as I know, will not be going into the city. It is rumored that Time Warner/Adelphia has a secret deal to keep Fios out, but most Verizon techs have told me they don't want to even bother going into the city because it is a rats nest. One of the major problems in my area is that many people think that Time Warner is giving them a better deal than Fios, but the quality and speed of Fios is unmatched by Time Warner. Fios TV and internet is much better than Time Warner, but I feel your pain because many of my friend who live in the North Towns or Buffalo cannot, and probably, will not experience Fios.

I would have killed to have it here so I could have left Comcrap.. but nooooo They would have had much of the fiber paid for too since my town and the one next to it was paying to install fiber and a new data center nearby - perfect for them to use!

Cable did everything they could to kill this, now comcast paid verizon a few billion to buy spectrum off them and resell verizon wireless and to stop fios buildout at the same time....

if I was verizon, anytime a copper segment came up for rebuild, I'd say ok no more copper, thats going fiber, but inverstors and people like stanford berns manager craif moffet kept saying fiber is dead everything is going wireless! I'm sorry but I don't want wireless in my house, I want my house to be hardlined!

neufuse said,
Cable did everything they could to kill this, now comcast paid verizon a few billion to buy spectrum off them and resell verizon wireless and to stop fios buildout at the same time....

if I was verizon, anytime a copper segment came up for rebuild, I'd say ok no more copper, thats going fiber, but inverstors and people like stanford berns manager craif moffet kept saying fiber is dead everything is going wireless! I'm sorry but I don't want wireless in my house, I want my house to be hardlined!

Those same investors (stockholders and bondholders - as I said earlier, mostly pension plans) don't want high-capital-expenditure projects undertaken. VZ charges *nothing* for a FIOS installation, and nothing for the (required-but-included) wireless router - that's a hit *directly* to VZ's bottom line - labor and materials. (A typical FIOS install costs easily $1,000/customer - that's a one million dollar (US) whacking VZ takes per thousand FIOS customers.) While your argument - and mine - is that VZ will make that back in the longer term, the investors aren't thinking in the long term. They want higher rates of return *now*. That means piddly-diddly capital investment by any utility that serves customers directly (it's just as obvious with electric utilities and cable companies). Unless you're lucky enough to have investors that actually have a clue about the reason for capex (those that buy Intel stock, for example - Intel has the highest capex among the tech stocks), you aren't going to make large capital expenditures.

The cable companies have at least in my area caught up with FiOS when it comes to the standard speed/price ratio(im not taking about the 150mbps speeds, but the more normal consumer friendly ones). As far as upload speeds go, that a different story though.

FIOS will make a return when Wireless (LTE Advanced) proves that it can't cope with all of the internet savvy households in the cell that have teens who consume more and more bandwidth. That is if FIOS hasn't been sold off or another carrier hasn't already filled the void. I'm sure there are still plenty of populated areas which can fill a ROI

Actually, it's the investors - those that buy VZ and other senior corporate debt - that want higher returns on their investment - which means a drying-up of high-capex expenditures, such as FTTH (and even FTTN, or Fiber To The Node). What's amusing is that the majority of the big investors (not just in telco debt, but cable company and other utility debt) are largely public-sector pension plans, union pension plans, and other institutionaal investors. In other words, it's not the *millionaires and billionaires* - it's the recently-retired (or soon to be retiring) Joe Sixpack and Jane Wine-quaffer.

Pffffffft. If I read the Milwaukee area for FiOS they had it at one point then discontinued it. the price/speed you get it is way better than what any other companies are offering. Dont get me wrong, i love Time Warner Cables Download rates, but their upload rates, gosh. why is it so low?

Verizon rolled out FiOS in my area 3 years ago.

By my area I mean right next to my street, not down my street.

Unfortunately, I was not aware of this information until the middle of this year.

I talked to an engineer and he explained that the feed for the lines on my street come from a different area even though the break in FiOS coverage is literally a 10 second walk from the end of my street. (my street only has about 25 houses on it too, is a dead end).

I've wanted to get off Cablevision's service all this time due to the 2.5 years of problems I've had with them but never could. Oh the negative emotions I felt when I found out FiOS was a short walk away for the last 3 years.

I doubt FiOS will ever come down my street..

DAOWAce said,
Verizon rolled out FiOS in my area 3 years ago.

By my area I mean right next to my street, not down my street.

Unfortunately, I was not aware of this information until the middle of this year.

I talked to an engineer and he explained that the feed for the lines on my street come from a different area even though the break in FiOS coverage is literally a 10 second walk from the end of my street. (my street only has about 25 houses on it too, is a dead end).

I've wanted to get off Cablevision's service all this time due to the 2.5 years of problems I've had with them but never could. Oh the negative emotions I felt when I found out FiOS was a short walk away for the last 3 years.

I doubt FiOS will ever come down my street..


With your cablevision service . Make sure you get a docsis 3 modem. That helps with the speed problems

This makes sense given the recent changes in agreements between Verizon, Comcast, and Microsoft. Verizon and Comcast recently agreed to resell each others services. I'm sure part of that is to allow (in time) the ability to sell each others services over each others data network. Verizon and Comcast have both agreed to put their services on Microsoft's XBox console. Why would they make these agreements? Its simple. the writing is on the wall. Net Neutrality is going to come and they have to defend against services like Netflix and Hulu which have individuals choosing to "cut the cord". They know that in the future they will have to compete against these and other like services which they can't foresee. To get ready for the IPTV Battle, they have chosen to start with the XBox and build their IPTV services now. I suspect that as their infrastructure grows and they can handle more streams, that all of their channels will have "live TV" Services, but for now only Verizon will offer 40 channels and Comcast will only provide "On Demand" services. I suspect that the reason Verizon won't build out their FIOS services any further is that they will have agreements with the ISPs to not throttle their services as well as have the ability to sell IPTV services regardless of the source. Time will tell.

I am sure this must apply to new markets? As Philadelphia isn't fully wired yet, but Verizon has 5 years left to finish doing so. I am sure they will as if they don't they are subject to multimillion dollar fines for every day that go past the 7 year timeline they signed...

So I am sure the article should reflect that they aren't expanding to new markets as it currently reads as if they will stop laying new FIOS cable in two years, which can't be accurate.

Not enough people using it..?

And if so that is because they didn't roll it out fast enough. I've been waiting years for it to come into my neighborhood but I guess it never will now.

Meh. I think they're just saying they plan to promote it still so people still buy it. They'll probably eventually do what they did to us in the Northwest and sell us it off to some other ISP. I have the lucky fortune of being on Frontier Fios! Where they haven't upgraded a thing and just increase rates. Yay!

Mercuie said,
Meh. I think they're just saying they plan to promote it still so people still buy it. They'll probably eventually do what they did to us in the Northwest and sell us it off to some other ISP. I have the lucky fortune of being on Frontier Fios! Where they haven't upgraded a thing and just increase rates. Yay!

Exactly my first thought. Get stuff working, make some quick cash on initial investment, then dump it on some half broke dick company who can't afford it to begin with.

That sounds good until you realize the tens of billions of dollars in infrastructure investment. They simply need great ROI before the next phase in the original rollout roadmap.

SharpGreen said,
I wonder why they stopped.
Likely not enough people are switching. Essentially not getting enough return on investment.

DrDrrae said,
Likely not enough people are switching. Essentially not getting enough return on investment.

Everybody I know has FIOS. No. The real reason why they stopped expanding is because they believe in 4G connectivity, and redirecting their resources towards LTE Advanced and even better connectivity, they can have the same great connection, but over a wider area with less labor since you don't have setup every neighborhood, you just put a cell tower in.

I know it sounds crazy to replace FIOS with LTE Advanced, but getting a head start now will set them up for success to be the top notch quality wireless ISP of the United States. When you compare the speeds, LTE Advanced is much faster than the best bandwidth package you can get with FIOS.

Also, Verizon does not want anymore Windows Phones until they support LTE. They obviously want the entire market of phones to be LTE capable as soon as possible for a reason.

My concerns are reliabilty and stability of the connection... :-/

Sionic Ion said,

My concerns are reliabilty and stability of the connection... :-/

Latency would be another concern

Sionic Ion said,

Everybody I know has FIOS. No. The real reason...

You could be right but I do have FiOS in my neighborhood. I only know of a few people who switched. Most everyone else still has Comcast with a few with DirectTV or Dish.

Sionic Ion said,

Everybody I know has FIOS. No. The real reason why they stopped expanding is because they believe in 4G connectivity, and redirecting their resources towards LTE Advanced and even better connectivity, they can have the same great connection, but over a wider area with less labor since you don't have setup every neighborhood, you just put a cell tower in.

I know it sounds crazy to replace FIOS with LTE Advanced, but getting a head start now will set them up for success to be the top notch quality wireless ISP of the United States. When you compare the speeds, LTE Advanced is much faster than the best bandwidth package you can get with FIOS.

Also, Verizon does not want anymore Windows Phones until they support LTE. They obviously want the entire market of phones to be LTE capable as soon as possible for a reason.

My concerns are reliabilty and stability of the connection... :-/

Well said. so we basically expand from being wired to wireless 4G and we should connect to these towers by say... our wireless routers??? sounds plausible

Sionic Ion said,

Everybody I know has FIOS. No. The real reason why they stopped expanding is because they believe in 4G connectivity, and redirecting their resources towards LTE Advanced and even better connectivity, they can have the same great connection, but over a wider area with less labor since you don't have setup every neighborhood, you just put a cell tower in.

I know it sounds crazy to replace FIOS with LTE Advanced, but getting a head start now will set them up for success to be the top notch quality wireless ISP of the United States. When you compare the speeds, LTE Advanced is much faster than the best bandwidth package you can get with FIOS.

Also, Verizon does not want anymore Windows Phones until they support LTE. They obviously want the entire market of phones to be LTE capable as soon as possible for a reason.

My concerns are reliabilty and stability of the connection... :-/


This would be great, but then we'd be at the mercy of Verizon Wireless. I don't even want to imagine what their bandwidth limits and prices would be. No matter how good it will be a far cry from FiOS' attitude of unlimited everything.

Sionic Ion said,

Everybody I know has FIOS. No. The real reason why they stopped expanding is because they believe in 4G connectivity, and redirecting their resources towards LTE Advanced and even better connectivity, they can have the same great connection, but over a wider area with less labor since you don't have setup every neighborhood, you just put a cell tower in.

I know it sounds crazy to replace FIOS with LTE Advanced, but getting a head start now will set them up for success to be the top notch quality wireless ISP of the United States. When you compare the speeds, LTE Advanced is much faster than the best bandwidth package you can get with FIOS.

Also, Verizon does not want anymore Windows Phones until they support LTE. They obviously want the entire market of phones to be LTE capable as soon as possible for a reason.

My concerns are reliabilty and stability of the connection... :-/

Yeah, they put caps on cell data rates, but they are going to build towers at the drop of a hat for home data. Will I at least get an 8GB cap I hope, maybe by then I can have 16GB for only $500 a month?

Everyone you know has FIOS, that is great that you live in an area it is available. It is far too small a footprint, so your sampling size is irrelevant. Outside a major city, it is all but unknown.

Why would they give you high speed access when they can now put a cap on it, build less infrastructure, less speed, and still rake in money?

That's a shame.
We need faster broadband in the United States. FIOS is great, but even it can't compete with a lot of first world countries.
And don't give the standard U.S. is big excuse. It doesn't apply. Heavily populated areas (where most of the population live) don't have as fast of service as many other places around the world.

mrp04 said,
That's a shame.
We need faster broadband in the United States. FIOS is great, but even it can't compete with a lot of first world countries.
And don't give the standard U.S. is big excuse. It doesn't apply. Heavily populated areas (where most of the population live) don't have as fast of service as many other places around the world.

You obviously aren't a CEO of a major corporation who answers to shareholders. I'm sure if further FIOS investment had the prospect of a speedy ROI, Verizon would be continuing. The economy is shattered.