Is Verizon Losing Money on FIOS?

[tds4182]

$800 to install not losing(They give customers a free install and that costs $800 on average)

Your post indicates that you either didn't read the article or are purposely misinterpreting it to suit your own opinions.

I'd invite you, or anybody else, to read the article and decide for themselves which of our statments is most accurate and factual.

 

[Juan]

Your post indicates that you either didn't read the article or are purposely misinterpreting it to suit your own opinions.

I'd invite you, or anybody else, to read the article and decide for themselves which of our statments is most accurate and factual.

I dont need to The $800 loss is from installation. I think you need to reread the article ,perhaps u can post a link so that we can show you what you are misreading

 

[Stargazer]

If they lost $800 per subscriber at this point, then what will that loss be in a few years? If they make $30-40 per sub per month especially if they take a bundle, then they would get that $800 back in another couple of years. Eventually they are not going to have a loss on that subscriber, as long as they stick around.

If the customers are not sticking around after their contract then yes, maybe it would be possible to lose $800 per subscriber.

 

[Bob Haller]

Bob, Verizon has drastically reduced their marketing campaign...now sure why they are targeting you. Anyway, I think you should stick with Dish Network...

I have 2 phones lines one business and one residential. I could of heated my home on the 6 pieces or more of junk mail a week, to say nothing of the salespeople at the door, had 7 or 8 that i know of, or the every other day phone calls.

this after my phone troubles repeatedly asking to be put on do not disturb even asking the presidents office repeatedly......

finally called verizon and asked for phone number of the marketing manager who sent all the junk

called his office and laid into his secretary, he was never in.

junk mail ands calls finally stopped.

I also asked the last few verizon fios sales guys at my door..... wheres your solicitation permit I want to see it

Sorry its not with me

Ahh just hold on a minute please then we can talk

I go call police and casually asked questions till cop shows up

Told cop I have repeatedly asked to be put on do not disturb!!! he has no permit.

 

[Mr Tony]

I go call police and casually asked questions till cop shows up

Told cop I have repeatedly asked to be put on do not disturb!!! he has no permit.

good job
waste the cops time when they could be doing other things

 

[tds4182]

I dont need to The $800 loss is from installation. I think you need to reread the article ,perhaps u can post a link so that we can show you what you are misreading

See my OP. It was on page c14 of the 1/26/2010 print edition of the WSJ.

Read it for yourself.

 

[cforrest]

HEARD ON THE STREET: Verizon's Generation Gap - WSJ.com

And the $800 figure is an estimate from Moffett the cable jock, FYI! Who knows how accurate he really is, it could be less really, we don't know.

 

[vurbano]

Bob, Verizon has drastically reduced their marketing campaign...now sure why they are targeting you. Anyway, I think you should stick with Dish Network...

They are not targeting him. He just hates Verizon.

 

[Bob Haller]

They are not targeting him. He just hates Verizon.

ask anyone who lives in a FIOS area, that doesnt sub to all 3........

hey do not disturb means dont contact me again. verizon by totally ignoring possible customers requests may well be doing more harm than good.

as to wasting cops time. the town passed the soliciation permit after some break ins. fake solicitors were casing homes for burglary.

so my wasting cops time might uncover another break in group.

 

[tds4182]

HEARD ON THE STREET: Verizon's Generation Gap - WSJ.com

And the $800 figure is an estimate from Moffett the cable jock, FYI! Who knows how accurate he really is, it could be less really, we don't know.

You can attempt to impugn Moffett's motives all you want. The WSJ usually does a pretty decent job of vetting the accuracy of articles that appear in the print edition.

It doesn't alter the basic fact that even Verizon's own executives admit that they are losing money on land line based services (phone and television) as are most of the other telcos. The only unit of Verizon that is making $$ right now is their cellular side of the house.

 

[DishSubLA]

Verizon is an huge company with deep pockets; they can keep going like this for quite a while, but the returns will increase as time passes making the initial huge investment worth it in the long run.

 

[tds4182]

Verizon is an huge company with deep pockets; they can keep going like this for quite a while, but the returns will increase as time passes making the initial huge investment worth it in the long run.

They're not that "huge" and their pockets aren't that deep compared to some of the other telcos. Almost all the old "baby bells" are in better shape financially than is Verizon.

If I were a Verizon investor, I would not be a happy camper over this.

 

[BobMurdoch]

I've got Fios for Phone and Internet, but they send me two mailing a week trying to entice me to add TV as well.

My two year discounted rate is up next month. Will be interesting to compare costs with E* who is pi$$ing me off with these receiver fees ($20 more a month for their "no price increase" increase).

Since the bill will be going up $15 anyway, it might make sense to add it as a backup for $10 more for two years PLUS the $150 giftcard they are offering...

 

[Juan]

They're not that "huge" and their pockets aren't that deep compared to some of the other telcos. Almost all the old "baby bells" are in better shape financially than is Verizon.

If I were a Verizon investor, I would not be a happy camper over this.

Top 20 company Now I know u r a cable plant there are only 2 baby bells left ATT and Verizon

http://money.cnn.com/magazines/fortune/fortune500/2008/snapshots/2773.html

 

[riffjim4069]

They're not that "huge" and their pockets aren't that deep compared to some of the other telcos. Almost all the old "baby bells" are in better shape financially than is Verizon.

If I were a Verizon investor, I would not be a happy camper over this.

I cannot believe you actually uttered these words... Would you care to provide us with some examples?

 

[JPL]

They're not that "huge" and their pockets aren't that deep compared to some of the other telcos. Almost all the old "baby bells" are in better shape financially than is Verizon.

If I were a Verizon investor, I would not be a happy camper over this.

I'm sorry, but this is a flagrantly silly posting. Verizon is in very good shape financially. Most companies can't afford to make a $23 billion investment like FiOS. In fact, I give them many kudos for rolling out FiOS - it shows a long range thinking that is rare in many companies these days.

As for the other posting stating that they have very deep pockets and they can keep going at a loss for some time... that's not true either. Yes, they likely have quite a bit of cash on hand. And yes they are extremely profitable, and they can subsidize something like FiOS for quite a while with their other business lines. However, Verizon is a publicly traded company. Investors care about things like 'returns on investment'. At some point all those share holders are going to start getting antsy that their investment isn't paying off. If they invested on the premise that FiOS would be the long term answer to the company, and they don't see those returns materialize, they will start ditching the stock. Jobs would be on the line. Turning a new venture like this into a positive cash-flow situation is critical. Technically they could keep going for a while, but the share holders wouldn't allow it.

 

[Bob Haller]

Well they sold ff a tremendous amount of land line business, those areas will never get veizon fios.

Interestingy verizon now includes high def channels in their various programming packages at no extra charge

 

[Juan]

Well they sold ff a tremendous amount of land line business, those areas will never get veizon fios.

Interestingy verizon now includes high def channels in their various programming packages at no extra charge

Not True..some of the areas sold have fios (ie Indiana) and there are plans to expand

 

[Stargazer]

The areas that were sold off with an infrastructure already there will most likely stay and expand if the market is there for it. The areas that Verizon sold off and did not install FIOS at will be less likely to ever see a FIOS type of service since the new company taking over would have less money to do so. In some areas though there are other companies that may do it instead.

Seems to me like Verizon put their money into their wireless (cell phone) infrastructure to sell in those areas where they are selling out their landline service and doing online wireline/fiber service in the bigger cities where it makes sense to do anything landline.

 

[tds4182]

The areas that were sold off with an infrastructure already there will most likely stay and expand if the market is there for it. The areas that Verizon sold off and did not install FIOS at will be less likely to ever see a FIOS type of service since the new company taking over would have less money to do so. In some areas though there are other companies that may do it instead.

Seems to me like Verizon put their money into their wireless (cell phone) infrastructure to sell in those areas where they are selling out their landline service and doing online wireline/fiber service in the bigger cities where it makes sense to do anything landline.

Stargazer, I suspect you're probably correct. Where the population density makes it economically feasible to support and/or continue FIOS installations they (Verizon) will continue to do so. In other areas they'll either sell off their interests or slow down on advertising and/or installations.

Verizon's real cash cow is their cellular service.