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Verizon FiOS: No Expansion in 2011; Existing Franchise Areas Will Be Completed, But That’s It

Phillip Dampier January 10, 2011 Broadband Speed, Competition, Consumer News, Verizon, Video 3 Comments

No significant expansion for FiOS in 2011, say company officials.

A Verizon spokesman has confirmed Verizon will not be expanding its FiOS fiber to the home service into new areas in 2011, except in those communities where the company already signed franchise agreements.

It’s the second year of Verizon’s hold on fiber expansion, instituted because of objections by Wall Street, a difficult economy, and a less optimistic view by Verizon’s new management that fiber has the capacity to quickly return on investment.

For upstate New York, the end-effect of Verizon’s decision is an odd patchwork of partially-built FiOS-capable communities, mostly in suburbs amenable to Verizon’s franchise terms. Some suburbs have access to FiOS broadband and phone service, but not television.  Others have access to all three services, while many other areas have nothing but Verizon’s ordinary copper phone lines.

“If you are big on fiber, there are some outlying towns with real estate agents that list whether or not their properties have Verizon FiOS, and whether that includes television service,” says Lysander, N.Y. resident Jeff, who reads Stop the Cap! “Our town was just glad Verizon picked us for upgrades and we didn’t ask too much of the phone company, quickly agreeing to a TV franchise agreement.”

But residents in the city of Syracuse are less happy — they won’t get competitive video from Verizon and are stuck with a Time Warner Cable wired monopoly because the city “dragged its feet” on franchise negotiations.

“When it comes to bigger cities, they see Verizon’s knock on the door as an opportunity to cash in on freebies from the phone company, like upgrading their video studios for government access channels, paying substantial franchise fees, and agreeing to carry channels the city government wants on Verizon’s cable system,” Jeff says.  “When the first cable systems came to town, it was the same story; some communities dragged their feet for years trying to extract more.”

Of course, cities don’t have to wait for Verizon to take care of their growing broadband needs.  They can build their own fiber networks and deliver world class service themselves, or open the new networks up to private competitors to deliver bigger bang for your broadband buck.

WSYR-TV in Syracuse reports it will be a long wait for many in central New York waiting for fiber to the home television service. (Warning: Loud Volume) (1 minute)

Currently there are 3 comments on this Article:

  1. Ian L says:

    My guess is that Verizon only has so much money to spread around, and honestly a $90 LTE-based cellular plan is easier to provision etc. than a $150 triple play. Plus, LTE right now covers more area than FiOS does…

    Once Verizon starts seeing serious competition on the wireless side from a performance perspective, maybe then they’ll push fiber into more homes. Until then, they have millions of customers…actually tens of millions (aka all of AT&T and most of Sprint, with some of T-Mobile thrown in) worth of low hanging fruit…

  2. siouxmoux says:

    This is ATT old Fashion phone lines. This is Over for new UV No New Expansion for 2011 expect for Existing Franchise Areas Will Be finished to Complete

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