Leading U.S. carrier,
Verizon Communications Inc.
) has launched Quantum fiber-optic service, an Internet service
through its FiOS cable network. The new service outpaced the
Internet speed of MSO
The telecom giant is offering speeds up to 500 MB per second,
) 1 GB speed but well ahead of Comcast's 305 MB downloading
Since yesterday, the Quantum fiber-optic service is available
across all FiOS markets at a price of $309.99 for a double-play
service of Internet, TV or telephone. In case of a triple-play
service (inclusive of video, Internet and voice), the subscriber
has to pay $329.99. However, Comcast's Internet service is
slightly cheaper than the Quantum fiber-optic service, costing
$299.95 per month.
Similarly, Google Fiber service starts at $70 a month. The
service is already available in Kansas City, Missouri and is
expected to be launched in Austin, Texas, and Provo, Utah, by the
end of 2013.
Recently, Verizon reported second-quarter 2013 financial results
where its bottom line was in line with the Zacks Consensus
Estimate but the top line missed the same. During the quarter,
Verizon added 140,000 and 161,000 customers to its FiOS Video and
FiOS Internet services, respectively.
Verizon exited the quarter with 5.0 million (up 12.6% year over
year) FiOS Video customers and 5.8 million (up 12.2%) FiOS
Internet subscribers. The penetration rate (subscribers as a
percentage of potential subscribers) of both FiOS Internet and
FiOS Video increased to approximately 34.5% and 38.6%, across all
markets from the year-ago levels of 32.6% and 36.6%,
Hence, we believe that the launch of the new service will not
only drive Verizon's FiOS business but will also help the company
to consolidate its position in the U.S. telecom market against
leading players like
), Sprint and T-Mobile US.
Currently, Verizon has a Zacks Rank #3 (Hold).
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