Verizon does well in Q1; DSL looks done
Verizon’s first quarter shows the company’s consumer Internet growth is now coming almost entirely from FiOS.
Verizon added a net of 266,000 new broadband connections. Of those, 262,000 signed up for FiOS Internet service.
Verizon no longer breaks out DSL numbers, but that leaves a difference of 8,000 net adds possible on the DSL customer rolls.
The additions brought total broadband connections to 8.5 million; Verizon said the split is now 6.7 million DSL and 1.8 million FiOS Internet connections.
Verizon added a net of 263,000 new FiOS TV customers for a total of 1.2 million.
The FiOS network had passed 10.4 million premises by the end of the quarter. FiOS Internet was available for sale to 7.9 million of the total, while FiOS TV was available for sale to 6.5 million premises. Verizon said penetration for the service averaged 18.7 percent across all markets.
Earlier this month, Verizon filed an application for the New York City video franchise, covering 3.1 million homes, many of which are in multiple dwelling units. Verizon already passes about 20 percent of these premises with fiber, and the company expects to begin selling FiOS TV service in the city later this year.
On the wireless side, Verizon added 1.5 million retail customers. Total data revenues were up 48.9 percent over the prior year, contributing $2.3 billion, the company said. It had 48.1 million retail data customers in March, a 33.8 percent increase over the prior year.
The company said its upgrade to EV-DO Revision A was ongoing, and the technology was available to more than 240 million Americans by the end of the first quarter. More than 58 percent of the company's retail customers – 38 million – had broadband-capable devices at the end of the quarter.
In March, Verizon Wireless held its first Open Development Initiative (ODI) conference to provide minimum technical standards required for creating products that can physically connect to the Verizon Wireless network, and a process to certify that these products will operate on the company's network. Plans call for customers to have the option to use products and services certified through the ODI process by the end of the year.
The company also reported strong performance in its Verizon Business unit.
Verizon's total operating revenues grew 5.5 percent to $23.8 billion, compared with the first quarter 2007.
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