Verizon’s third-quarter Fios Internet net additions
In the previous article, we discussed a few of the pay-TV market trends affecting Verizon (VZ). The telecommunications company is managing the secular challenges of the pay-TV market by concentrating on its Fios Internet offering.
It will be interesting to see Verizon’s Fios Internet net subscriber additions in the third quarter, as the company has continued to face stiff competition from leading cable companies.
In the second quarter, Verizon gained 43,000 Fios Internet customers. However, its net gains in Fios Internet connections were offset by a 53,000 decline in its number of high-speed Internet (or HSI) connections. As a result, its total broadband connections fell by 10,000 in the second quarter.
The reduction in HSI connections was majorly due to competitive pressures from top US cable companies. Charter Communications (CHTR) and Comcast (CMCSA) gained 218,000 and 226,000 residential broadband subscribers, respectively, in the second quarter.
Fios Gigabit Connection
Verizon believes that Fios Gigabit Connection continues to gain traction, offering speeds of up to 1 Gbps (gigabit per second). Verizon’s number of Fios Internet subscribers had increased ~3.9% year-over-year to 6.0 million as of June 30.
Verizon is optimistic about the growth trajectory of its broadband business. Demand is growing for HSI connections as users are migrating to television services delivered via the Internet, including Amazon’s Prime Video, Alphabet’s YouTube TV, and Netflix (NFLX). Netflix added 5.1 million subscribers worldwide in the second quarter.