September 29, 2006, New York, NY--Verizon Communications provided investors and analysts with new financial and operational details on what they are calling the most advanced broadband network being deployed in America. Outlining progress as the deployment of next-generation fiber-optic-based services (FiOS) gains momentum, key Verizon business leaders expressed confidence that FiOS investments would generate positive economic returns and shareholder value.
Verizon said it plans to pass 18 million premises with its fiber network by the end of 2010, or more than 50 percent of the approximately 33 million households in the company's 28-state wireline service area. The FiOS network build-out is on target to pass a total of 6 million premises by year-end 2006, with an additional 3 million a year planned through 2010.
Verizon said it expects to invest $18.0 billion in net capital from 2004 through 2010 in deploying the nation's largest network that brings the broadband capacity of fiber optics all the way to customers' homes and businesses. Doreen Toben, Verizon executive vice president and CFO said, "Our FiOS targets are based on what we view as achievable customer take-rates, reasonable pricing levels and conservative estimates of customer-retention metrics. Based on our experience deploying fiber, we see declining cost-trends to pass and connect homes, and we see significant ongoing operating expense savings."
Verizon reported that FiOS Internet is gaining share against competitive services in a growing broadband market. Approximately 70 percent of FiOS Internet subscribers are new Verizon broadband customers. Verizon is also seeing strong customer demand for FiOS TV, which was launched in its first market just a year ago. Verizon's goal is for FiOS TV to have a market penetration rate that ranges from 20 percent to 25 percent by 2010 -- or from 3 million to 4 million FiOS TV customers -- based on its estimate that approximately 15 million households will be video-ready by then.
For more information, visit www.verizon.com.