Tuesday, April 12, 2016

Huge! Verizon Communications to Build FiOS in Boston

This is huge: Verizon Communications, which had halted its FiOS program in 2010, is going to rebuild Boston with FiOS. Boston was among a notable number of major Verizon markets that Verizon concluded it would not upgrade for fiber to the home services. In addition to Boston, Buffalo, N.Y. and Baltimore are some of the larger cities that did not get FiOS.

But Verizon now says it will build FiOS citywide, spending more than $300 million over six years to do so.

The network will offer speeds up to 500 Mbps.

Initially, the project will begin in Dorchester, West Roxbury and the Dudley Square neighborhood of Roxbury in 2016, followed by Hyde Park, Mattapan, and other areas of Roxbury and Jamaica Plain.

At least in part, the change might be the result of an expedited permitting process that has allowed other Internet service providers, such as Google Fiber, to build faster and at lower cost.

It is possible that Verizon has concluded the business case for FiOS now has changed for additional reasons beyond the lower make-ready costs.

The strategic rationale might now also be more significant, irrespective of any improvements in the payback model. Use of the fixed network to offload mobile data traffic arguably is more important.

Use of the fixed network to support mobile backhaul operations from small cells might be a new driver on operating cost front.

Also, by now it is clear that high speed Internet access is the anchor service for a fixed network, and that Verizon must be competitive with cable TV offers and those of other ISPs if the economics of a fixed network are to work at all.

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