uploads///Telecom Fios Net Additions

How Much Growth Will Verizon’s Fios See?


Mar. 15 2016, Updated 10:06 a.m. ET

Verizon’s view on expected growth in Fios customers

Recently, Fran Shammo, Verizon’s (VZ) executive vice president and CFO, talked about Verizon’s expectations for Fios customer growth. He spoke about this at the Deutsche Bank Media, Internet & Telecom Conference on March 8, 2016.

Speaking about Fios, Shammo said, “broadband is becoming a bigger component of that and has been for the last two years in this industry and that is a sign that people are buying the broadband because they are consuming content in a different fashion and linear TV is going to slowly decline. But even with that, we believe we can still be positive on TV because our penetration is lower, we believe we can still take market share.”

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Verizon’s Fios service

As you can see in the above chart, Verizon’s net additions of connections in both video and Internet components continued to decline YoY (or year-over-year) in 4Q15. In terms of net additions, the telecom company had ~99,000 and ~20,000 Fios Internet and video connections, respectively, during the quarter.

Note that Fios is Verizon’s fiber-based voice, Internet, and video service. At the end of 4Q15, Verizon had ~5.8 million, ~7 million, and ~4.8 million Fios video, Internet, and voice connections, respectively.

Fios is similar to AT&T’s (T) U-verse. In addition, it is comparable to triple-play offerings of cable companies such as Comcast (CMCSA) and Time Warner Cable (TWC).

For diversified exposure to Verizon, you can consider investing in the SPDR Dow Jones Industrial Average ETF (DIA). Verizon made up ~1.8% of the ETF at the end of December 2015.


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