In early 2010, Verizon announced that they would slow down new FiOS installs at some point in the future, with the plan to stop new markets. Even though 2 years later they began ramping up again, it was only a matter of time before they completed their planned expansion. This week, Verizon CFO Fran Shammo said that they were nearing the end of new construction, saying,
As the XLTE install has continued, and the speeds of wireless has gotten closer to that of wireline services, it makes sense that Verizon would want to focus their attention there. Wireline services are definitely not a growing industry, while wireless services are. This is especially important to a company who, as part of the same conference call, announced a net loss of $2.23 billion in the last quarter of 2014.
In regards to the overall health of existing FiOS subscriptions, Shammo said,
While this is good customer growth, it does not pay for the expansion of FiOS, or even the maintenance of a copper network. Hopefully they will use the money saved to speed up the expansion of XLTE, and even the 3G retirement plans, which will make room for more bandwidth. That will allow for Verizon to compete in a market that Clear tried to create - a wireless-based home Internet plan. Clear's network wasn't prepared to support the demand, though a renewed vigor from Verizon could make their network capable.
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