FiOS underpins bullish '08 for Verizon

Verizon's super-fast fiber broadband service has powered another strong quarter of broadband growth and will underpin a strong overall year in 2008 despite any economic decline, according to Verizon's top executives.

Releasing its Q4 results, Verizon said 245,000 users signed up its FiOS service for Internet with total users up 124 percent over the year to 1.5 million users. Over all, the strong fiber growth underpinned an 18 percent increase over the previous year in Verizon's broadband audience to 8.5 million. The strong uptake in fiber comes as DSL uptake is flattening, with only 21,000 new DSL customers for the quarter. COO and President Denny Strigl said there had been a change in mix with some DSL migration to fiber and to wireless broadband.

Verizon met the markets earnings expectations for Q4, earning 62 cents per share. Discussing the impact of the economic downturn, CFO Doreen Tobin said Verizon had "not seen a change in sales expectations during January" and at this point Verizon was expecting a "solid year" and "meaningful growth." She said Verizon was "very confident" about 2008.

Tobin said the only impact she was noticing was in some smaller Midwest states, but over all she was not seeing any trend changes. She said the FiOS markets were stronger and was helping overall performance. Strigl said if they saw any impact Verizon could easily make changes to their discretionary cost base.

Verizon also said it recently signed up a million FIOS TV customers with 226,00 new users for the Q4 period and Tobin and Strigl both emphasized that  Verizon was noticing a strong co-relation between FiOS subscribers and line retention. Verizon said it expected to roll FiOS past another three million homes in 2008.

For More:
- Verizon Q4 Results Release
- Verizon Q4 Slides  

Related articles:
For full coverage by our expert Fierce reporters and commentators of the Verizon Q4 results and expectations for 2008, go to our Verizon Special Report 
Verizon gets props for wholesale VoIP Report