Pike & Fischer: Verizon may be too optimistic on FiOS service

AUGUST 29, 2006 -- Verizon (search Verizon) will likely fall short of its market penetration goals for its fiber-optic service (FiOS), predicts consultant Pike & Fischer in a recently published report.

Although it acknowledges that the Verizon service is growing rapidly, Pike & Fischer concludes Verizon's forecasts for FiOS (search FiOS) are too rosy when compared to the historic growth patterns of other communications services, like DSL. However, a proposed law that would make it easier to deploy television service over the FiOS network could help the company accelerate its acquisition of new customers, say Pike & Fischer analysts.

With its FiOS service, Verizon is delivering telephone service, broadband, and, in many markets, multi-channel video programming. The Pike & Fischer report describes the service in detail, including homes passed, sales and penetration rates, pricing, and technology.

Pike & Fischer states that Verizon's FiOS service will probably be available to fewer households and have a lower penetration of those households than Verizon predicts.

Even so, Pike & Fischer figures that by the end of 2008, Verizon could amass about 2.2 million FiOS customers -- aboutI17.4% of premises passed and 14.4% of total broadband units.

Pike & Fischer, a publishing and consulting company owned by BNA Inc., regularly profiles the major players in the broadband industry. For more information about its report, "Broadband Business Analysis: Verizon FiOS," visit www.broadbandadvisoryservices.com.

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