Verizon is abandoning its FiOS TV & internet service to pursue wireless partners

[The Chief]

Awful awful news

http://venturebeat.com/2011/12/09/verizon-stops-fios-build-out/

Communications giant Verizon is scaling back efforts to grow its FiOS television and Internet services, according to comments made by the company’s Chief Executive Lowell McAdams during the UBS Global Media and Communications Conference in New York Wednesday.

McAdams said the company will end its wireless LTE partnership with DirecTV in favor of new agreements with major cable companies Comcast, Time Warner and Bright House, reports the Washington Post.

Under the terms of that new agreement, Verizon will pay the three cable companies $3.6 billion to license a portion of wireless spectrum currently not in use. In return, the cable companies will cross-market Verizon’s phone, video, Internet and cell phone services to its customers.

Verizon also plans to stop building out the infrastructure for its FiOS services, McAdams said. There are two main reasons for this decisions: One, FiOS directly competes with big cable companies, and two, Verizon would rather spend its money expanding its wireless business instead of the expensive costs associated with building out the FiOS infrastructure.

McAdams said Verizon intends to maintain and promote FiOS within existing markets. However, judging by Verizon’s current strategy, it seems more likely that the FiOS portion of the business will get split up and sold off eventually. That’s sad considering the lack of high-speed Internet options available in the U.S.

[HalfSmokes]

Well that sucks

[Slateman]

Does this mean thy won't.provide it if it is.available?

This seems weird considering all the advertising they've been doing

[HalfSmokes]

For now if it's available where you live, you can get it, but they aren't entering new markets. There seems to be speculation it will eventually be sold or spun off

[PowerBoater69]

According to the Post article referenced in the article here, Verizon plans to continue planned expansion for the next couple years.  Expansion is very expensive and I had already read that they are doing better marketing to increase their customer base in already covered areas than moving into new areas.  So if you're waiting for them to move into your area there is still a chance.

Sounds like good news for wireless customers as they are expanding their network.  Hopefully better coverage and more services offered.

[PANatsFan]

There go my hopes of getting Fios in the city and makes me happy that I have decided to go with Directv.

[Nathan]

So maybe better LTE coverage that they charge you an assload if you use more than 2 GB a month.  Broadband access in this country is laughable.  We pay more than pretty much every other country for slower speeds.  South Korea has better access to broadband than the US.  $60 a month in some countries gets you a 200 Mbps connection.  What's it cost for the top speed FiOS that's like 50 Mpbs?  $150 a month?

[The Chief]

Broadband access in this country is laughable.

Yep

[MarquisDeSade]

There go my hopes of getting Fios in the city and makes me happy that I have decided to go with Directv.

What city?

[The Chief]

What city?

DC, where there are no RPGs on the streets, duh.

[MarquisDeSade]

DC, where there are no RPGs on the streets, duh.

Not a city, it's a district. 

[tomterp]

Not a city, it's a district.

 

Now, you're trolling.   

[Slateman]

What does it matter that they were competing with big cable companies? Were they losing? I don't see how considering its an infinitely better product than Cox ....

[PANatsFan]

What does it matter that they were competing with big cable companies? Were they losing? I don't see how considering its an infinitely better product than Cox ....

I'll have to be content with DirecTV and Earthlink DSL

[MarquisDeSade]

I'll have to be content with DirecTV and Earthlink DSL

Hopefully you'll also get to enjoy some stray gunfire, pistol whippings, and random street violence.

[PANatsFan]

Hopefully you'll also get to enjoy some stray gunfire, pistol whippings, and random street violence.

You live in white people central, holmes. I think you like to torment yourself.

[MarquisDeSade]

You live in white people central, holmes. I think you like to torment yourself.

That's funny coming from a guy looking to move into a former sheethole turned yuppie enclave. 

[The Chief]

Judging by the info in the article it sounds like they just want to focus on the wireless market since that's a much easier way to squeeze customers

[MarquisDeSade]

The new motto for every "service" provider should be:

"Bend over and break out the lube 'cause you're taking it straight up the azzpipe clowns." 

[JCA-CrystalCity]

I wonder if the comcast NBC merger meant the death of fios.  when the contect provider is in the business of providing the wire, Verizon already was paying comcast to carry its stuff.  that means they start with a price disadvantage.  I don't know if HBO and Time Warner is similar.  High capital costs to penetrate the market and an operating price disadvantage due to LAX ANTI-TRUST probably is an effective barrier to entry.

[HalfSmokes]

If you go conspiracy theory, I think Verizon's purchase of the cable company's wireless spectrum is my candidate

[JCA-CrystalCity]

Sounds like a nice quid pro quo.

[PowerBoater69]

Judging by the info in the article it sounds like they just want to focus on the wireless market since that's a much easier way to squeeze customers

Verizon is in the process of purchasing the carcass that is Netflix.  I suspect that they'll drop the name and make the content available on their wireless network.  As people start buying 4G quad core cell phones the carriers are going to have to beef up their network capability to provide massive amounts of content as demanded by their customers. 

[HalfSmokes]

Verizon is in the process of purchasing the carcass that is Netflix.  I suspect that they'll drop the name and make the content available on their wireless network.  As people start buying 4G quad core cell phones the carriers are going to have to beef up their network capability to provide massive amounts of content as demanded by their customers. 

1 hd movie to hit your data cap?
 

[hammondsnats]

comcast > verizon