Verizon Communications is ready to shift gears from FiOS network expansion towards marketing the technology to consumers who are already within existing FiOS coverage areas.
The company rolled the dice when it considered a FiOS fiber network, while AT&T decided to wait it out.
After Verizon announced its initial build out plans, reporters learned that the company has to eat a build cost of $750 per subscriber in a neighborhood. Furthermore, Verizon must then deal with a $600 support cost per household. But even with these high costs, the company wanted to lead the market as soon as possible.
It has been more than six years in the making -- with a significant investment -- but it appears that Verizon may have made the right decision. The company's gamble is paying off now that customers are looking for faster Internet and higher quality TV.
However, the decision to slow FiOS rollout will sadly leave a couple of cities out of the loop, including downtown Boston and Baltimore. Washington, D.C., Philadelphia and New York City all have FiOS support, with the company also promoting its FiOS TV service in these markets.
The Verizon FiOS TV now has one-fourth the nationwide FiOS market, and that number could increase by the end of 2010. Many subscribers are happy with their digital cable service, but a large marketing campaign should help consumers learn more about the benefits of FiOS TV.
Larger metropolitan areas can expect other providers to step up FiOS development in the coming months, while other markets will surely be left out to dry.
