Verizon’s FiOS Internet net additions in 3Q17
Verizon Communications (VZ) is managing the secular challenges of the pay-TV market by focusing on its Internet offerings in FiOS. It would thus be interesting to know the scale of Verizon’s FiOS Internet net customer additions in 3Q17, as the telecom company continues to face strong competition from cable companies.
In 2Q17, Verizon gained 49,000 FiOS Internet users, compared with 13,000 net subscriber losses in 2Q16. However, the net gains in FiOS Internet connections in 2Q17 were offset by declines in Verizon’s DSL-based Internet connections. This decline in total broadband users was primarily due to strong competition from cable companies such as Comcast (CMCSA) and Charter Communications (CHTR), which managed to add the most Internet users during that quarter.
Verizon’s FiOS Gigabit Connection
Verizon’s FiOS Internet penetration grew 10 basis points to reach 40.2% in 2Q17, compared with 40.1% in 2Q16. The telecom company’s FiOS Internet users rose ~4.4% on a YoY (year-over-year) basis to reach ~5.7 million by the end of 2Q17.
Notably, Verizon’s management had previously highlighted that the carrier had introduced its FiOS Gigabit Connection to certain markets—a service that offers data speeds of up to 1 Gbps (gigabits per second).