FiOS Boosts Verizon's 2Q11 Revenues

NEW YORK - Verizon's FiOS services generated 57 percent of the company's consumer wireline revenues in second-quarter 2011, compared with approximately 48 percent a year earlier, and contributed to the company's strong second-quarter earnings. Average revenue per user (ARPU) for FiOS customers continues to be more than $146, compared with $92 for consumer wireline services overall.

"In terms of earnings growth and the acceleration of revenue growth, this has been one of Verizon's best quarters since the 2008 economic downturn," said chairman and (outgoing) CEO Ivan Seidenberg. "We also continue to see strong customer demand for FiOS Internet and TV, and for cloud and other strategic services."

Verizon added 189,000 net new FiOS Internet connections and 184,000 net new FiOS TV connections in second-quarter 2011, bringing the total number of subscribers to 4.5 million for FiOS Internet and 3.8 million for FiOS TV. FiOS Internet penetration, measured in terms of subscribers as a percentage of potential subscribers, reached 34 percent at the end of second-quarter 2011, compared with 30 percent at the end of second-quarter 2010. New FiOS Internet connections more than offset a decrease in DSL connections, resulting in a net increase of 62,000 broadband connections from first-quarter 2011.

FiOS TV penetration reached 30 percent, compared with 26 percent a year earlier. The FiOS network passed 16.1 million premises at mid-year 2011.