According to market research firm IHS, AT&T is on its way to becoming the number one Internet and pay-TV package provider. The telecom's U-verse service is expected to continue chipping away at Verizon FiOS's lead this year, eventually squeaking past the competitor in 2013.
"U-verse's strong growth relative to FiOS is setting the stage for AT&T to take over the lead from Verizon by a nose at the end of 2013," said Tom Adams, senior principal analyst for U.S. media at IHS.
Adams explained that despite FiOS enjoying a head start, U-verse's slow but steady gains over the past few years -- combined with Verizon's stagnating numbers -- has placed the competitors within 400,000 subscribers of each other.
FiOS held 4.17 million customers at the end of 2011, with U-verse serving nearly 3.8 million. By the end of 2013, the analyst believes AT&T's service will lead 5.04 million to Verizon's 5.03 million.
Measuring the two companies' pros and cons, Adams noted that AT&T's lower cost comes at a price: U-verse isn't strictly fiber-optic, instead relying on older copper wiring to reach more homes. And reach homes it does, with IHS estimating AT&T can service around 30 million homes compared to Verizon's 16.5 million. Meanwhile, Verizon relies solely on fiber-optics for FiOS, so the quality is great for those lucky enough to have access -- and afford it.
FiOS costs $84.99/month for a phone, Internet and TV package, while U-verse's TV and Internet bundles come in between $30-$60/month.
