FiOS is just fine...the economy sucks and they have contractual obligation to meet
If you consider too expensive meaning paying less and receiving more than Cable or Satellite then yes, it's too expensive. My FiOS Triple Play costs more than $60 less than my folks similarly equipped Comcast Triple Play...minus the staticy phone service, 50 less HD channels, watered-down SD and HD channels, and less reliable Internet.
Verizon is suspending the expansion of FiOS for three reasons:
1) It's expensive to build the network and economy sucks
2) They are spending billions on their 3G and 4G wireless networks
3) They have contractual build-out obligations with existing Cable TV franchises
As I stated back in January, "FiOS has been a losing venture since it's inception, but it was their only alternative since the landline business has been bleeding customers. As I recall, Verizon has invested something like 26 billion into the FiOS buildout. I also recall reading in their 3Q report that FiOS would start making a profit in 2010. Regardless, is appears that Verizon has slowed the build-out and is focusing on increasing their penetration rates in existing markets. This action is partly due to the economy (the business and consumer markets are hurting) and mostly because they are spending buckets of money on their wireless segment - building out the 4G network. I guess Verizon Wireless doesn't want to be the butt of jokes after AT&T completes their wireless upgrades. FiOS is an outstanding product, but it is certainly not cheap running fiber-to-the-premise."
As I stated back in February 2007, "It's [FiOS] three miles and perhaps as much as three years away from my neck-of-the-woods..." At my Virginia home Verizon had obtained a Cable TV franchise roughtly 3 1/2 years ago, but (according my sources on the cable commission), Verizon is currently only offering service to less than 20% of residents. There are "SIGNIFICANT PENALTIES" involved if Verizon fails to meet the build-out requirements. For example, there were initial build-out areas had to be completed and FiOS TV offered service within the first 12-months. The only build-out requirement in the Country is that Verizon offer FiOS TV service to 60% residents within 7-years, and 80% of residents within 10-years. Well, Verizon now has less than 3 1/2 years to build-out their service to approximately 40% of the residents...and this is similar to other areas they obtained a cable franchise authority back in 2006 and 2007.
Three and one-half years ago FiOS TV service was being offered 3-miles away from our home address...and it is still 3-miles away. Although there has been some construction, they now need to build-out a number of their Central Offices and run fiber...unfortunately, Verizon has been focusing their money and manpower in more populated areas of Northern Virginia.
FiOS is still the best and cheapest Pay TV provide in town...they just aren't coming to any new town that don't already have an existing franchise agreement in place.
