The default speed of Verizon Wireless’ FiOS Internet service is now at 50 mbps. This piece of news comes as the growth of new subscribers for the Big Red’s feature is starting to slow down.
As explained by Fran Shammo, the chief financial officer of the biggest wireless carrier in the United States, during a recent fourth quarter earnings call, more and more mobile users, particularly subscribers of Verizon Wireless, are electing to subscribe to higher data speeds. This serves as a sort of indication that mobile users of today are truly getting more reliant on the Internet and are obviously requiring more data and improved data speeds.
Shammo further added that by the end of the last quarter of 2015, over 70 percent of Verizon Wireless’ consumer FiOS Internet subscribers have signed up for data speeds of at least 50 mbps. Because of this, the Big Red felt it was right to shift its introductory offer for its FiOS Internet service to 50 mbps.
The Verizon Wireless CFO believes that a significant factor contributing to the growth of FiOS Internet’s subscribers is that people now seem to prefer having Internet service instead of going for linear TV service subscriptions. Sign ups for Custom TV, which makes up around a third of all FiOS video sales, certainly continue to show growth in the final quarter of last year.
Still, it should be noted that while Verizon Wireless has managed to gain some 99,000 new subscribers for its FiOS Internet service, it has actually decreased compared to the 145,000 new customers the Big Red added during the same period in the previous year. Having said that, the growth of FiOS broadband and video has contributed in racking up revenues amounting to $4.1 billion in the final quarter of 2015 from Verizon’s wireline consumers. The $4.1 billion signifies an increase of 2.6 percent compared to the previous year’s numbers for the same period. Also, earnings from Verizon’s FiOS service makes up 80.4 percent of that amount.
Overall, Verizon Wireless ended 2015 with a total of 7 million customers for its FiOS Internet service, and 5.8 million customers for its FiOS video service, showing a 6.3 percent and 3.2 percent increase, respectively, compared to the previous year’s numbers. Penetration for FiOS Internet was 41.8 percent at the end of 2015, compared to 41.1 percent a year ago. As for FiOS video, penetration was 35.3 percent, compared to 35.8 percent in the previous year.
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