Landline voice erosion is a reality that Verizon says it's no longer worried about, and despite growth in wireless it's not turning its back on wireline either. At the heart of its consumer wireline business is both its DSL and FTTP-based broadband networks.
During the third quarter of 2009, the telco's broadband numbers were slightly down. While Verizon reported that it added 198,000 new FiOS Internet customers and 191,000 net new FiOS TV customers, bringing it to a total of 3.3 million total FiOS Internet and 2.7 FiOS TV customers. Overall broadband connections at the end of Q3 '09 were 9.2 million, an 8.5 percent year-over-year increase. Verizon's broadband gains fell shy of Stifel Nicolaus financial analyst Chris King's expectation of 250,000 for the quarter.
Despite the slowdowns, which could be contributed to seasonality or continued encroachment from cable in markets where it's offering FiOS, Verizon says its FTTP network passed 14.5 million subs at the end of the third quarter and is on target to reach 15 million by the end of this year. Some of notable cities/towns that Verizon has gotten cable franchise agreements in place to launch FiOS services in areas include Washington, D.C., Allentown, Pa., and Westford, Ma.
Not surprisingly, Verizon is doing everything it can to keep its subscriber base from churning to the dreaded cable companies. Key to that strategy is the quad play bundle. Verizon recently launched a quad play bundle offering that will include existing DSL copper and Fiber to the Premises (FTTP) customers. Initially offered in its Northeast and Mid-Atlantic regions, FiOS and DSL customers will be able to build a bundle of wireless, TV (FiOS TV and DIRECTV), Internet and home phone services.