Verizon’s broadband customer base crossed the 10 million mark in Q3, as the operator reported gains in both Fios and fixed wireless access (FWA).
Fios net additions rose to 72,000 across Verizon’s Consumer and Business segments, up from 61,000 in Q3 2022. Total broadband net adds were 434,000, compared to 377,000 in the year-ago quarter. Overall FWA net additions reached 384,000, representing a YoY increase of 42,000 net adds.
Verizon doesn’t provide DSL metrics, but the difference between its Fios net adds and total wireline net additions implied the company lost 22,000 DSL customers in the quarter.
All told, Verizon now has around 10.3 million broadband customers, including 2.7 million FWA subscribers.
Executives on the earnings call didn’t say much about Fios progress, but CEO Hans Vestberg noted Fios “remains a coveted, high-quality service and we continue to take share and deliver strong numbers even in a lower mover environment.”
Verizon has stated plans to build 500,000 new Fios passings this year and is striving to cover 18 million locations in the coming years.
Regarding fixed wireless, CFO Tony Skiadas said, “the addition of the second tranche of C-band spectrum will help us continue our FWA momentum, as we work to build a long-term sustainable business.”
Asked if Verizon has any interest in buying fiber or wireless assets in the market, Vestberg reiterated Fios is doing “extremely well” with another “record quarter” of subscriber gains. Outside its footprint, Verizon continues to work on its One Fiber backbone initiative – though he didn’t give concrete details on how the project is going.
“Right now our strategy is clear that we want to take the broadband subscribers with fixed wireless access,” Vestberg said. “We don’t see a need right now for adding any fiber to that footprint. Over time of course, we will always look into it.”
Verizon meanwhile is aiming to build up its Fios workforce, announcing last week it plans to hire 1,800 new broadband technicians over the next three years.
Financials
Consolidated operating revenue of $33.3 billion dipped 2.6% year on year, with net income declining 2.8% to $4.9 billion. Consumer Fios revenue of $2.9 billion was flat YoY, while Business Fios revenues rose 1.3% from $304 million to $308 million.