FiOS Now 54% of Verizon Fixed-Line Revenue

Though wireless lead Verizon's quarterly highlights, as typically is the case, the company also reported continued progress with its FiOS business. In fact, FiOS revenues now are 54 percent of total fixed-line revenues. Some observers might well note that it has proven harder than anticipated to convince customers of the value of fiber to the home service.

Verizon recorded 6.3 percent year-over-year increase in wireless service revenues in the first quarter of 2011, with data revenues up 22.3 percent. Service revenues in the quarter totaled $14.3 billion. Data revenues were $5.5 billion, up $1 billion year over year, and represent 38.1 percent of all wireless service revenues. Total revenues were $16.9 billion, up 10 percent year over year.

Retail postpaid ARPU grew 2.2 percent over first-quarter 2010, to $53.52. Retail postpaid data ARPU increased to $20.51, up 17.3 percent year over year. Retail service ARPU also grew 2.2 percent, to $51.88.

Verizon added 1.8 million net new accounts, including 906,000 retail postpaid net customer addition. Retail postpaid churn was one percent.

Verizon also added 207,000 net FiOS Internet and 192,000 net FiOS TV additions, for a total of 4.3 million total FiOS Internet connections and 3.7 million total FiOS TV connections.

FiOS consumer retail revenues now represent approximately 54 percent of total Verizon consumer revenues. The company also saw a 12.8 percent increase in "strategic" enterprise revenues, which now represent approximately 46 percent of total global enterprise revenues.

FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 33.1 percent by the end of the first quarter, with the product available for sale to 13 million premises. This compares with 29 percent penetration at the end of first-quarter 2010.

FiOS TV penetration was 29 percent by the end of first-quarter 2011, with the product available for sale to 12.6 million premises. This compares with 25.4 percent and 11.5 million, respectively, at the end of first-quarter 2010.

Broadband connections totaled 8.5 million at the end of first-quarter 2011, a three percent year-over-year increase. FiOS Internet connections more than offset a decrease in DSL-based broadband connections, leading to a net increase of 98,000 broadband connections from fourth-quarter 2010.

These are the most broadband net additions since the second quarter of 2009. Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 8.2 percent to 25.5 million -- the smallest year-over-year decline since first-quarter 2008, the company said.

read more here