FiOS Represents 77 Percent of Verizon Wireline 4Q Revenue Growth

  • Verizon
NEW YORK — In its Q4 2014 results, Verizon reported consumer revenues of $4 billion, up 4.1 percent compared with fourth-quarter 2013, of which FiOS revenues represented 77 percent of the total. Total FiOS revenues grew 11.6 percent, to $3.3 billion, comparing fourth-quarter 2014 with fourth-quarter 2013. For the full year, FiOS revenues totaled $12.7 billion in 2014, up 13.6 percent compared with $11.2 billion in 2013.

Wireline operating income margin was 4.4 percent in fourth-quarter 2014, up from 1.2 percent in fourth-quarter 2013. For the full year, wireline operating income margin expanded to 2.7 percent, compared with 0.9 percent in 2013.

Sales of strategic services — private IP, Ethernet, data center, cloud, security and managed services — to enterprise customers increased 1.5 percent, to $2.1 billion, compared with fourth-quarter 2013.

FiOS Growth: 145,000 New FiOS Internet Connections
In fourth-quarter 2014, Verizon added 145,000 net new FiOS Internet connections and 116,000 net new FiOS Video connections. Verizon had totals of 6.6 million FiOS Internet and 5.6 million FiOS Video connections at year-end 2014, representing year-over-year increases of 9.0 percent and 7.4 percent, respectively.

FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 41.1 percent at the end of 2014, compared with 39.5 percent at the end of 2013. In the same periods, FiOS Video penetration was 35.8 percent, compared with 35.0 percent. The FiOS network passed more than 19.8 million premises by year-end 2014.

By year-end 2014, 59 percent of consumer FiOS Internet customers subscribed to FiOS Quantum, which provides speeds ranging from 50 to 500 megabits per second, up from 57 percent at the end of third-quarter 2014.

FiOS Additions Offset Decline in DSL Connections
Broadband connections totaled 9.2 million at year-end 2014, a 2.1 percent year-over-year increase. Net broadband connections increased by 59,000 in fourth-quarter 2014 and 190,000 for the full year, as FiOS Internet net additions more than offset declines in DSL-based, high-speed Internet connections.

More Copper Customers Migrated to Fiber Optics

Verizon has been replacing high-maintenance portions of its residential copper network with fiber optics to provide customers with a more resilient infrastructure, which improves customer satisfaction and reduces repair costs. In fourth-quarter 2014, Verizon migrated an additional 52,000 customers who had been using copper connections, bringing the full-year total to around 255,000. Verizon has converted more than 800,000 customers to fiber since starting this initiative in 2011.

FiOS Quantum Gateway Router Introduced
In November, the company began selling the FiOS Quantum Gateway Router, capable of delivering speeds up to 800 megabits per second over Wi-Fi. The device separates high-bandwidth activities (HD video streaming and online gaming) from regular data consumption (Web browsing and email). It will receive seamless updates regularly to provide increased functionality, such as guest Wi-Fi and enhanced parental controls.

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