Verizon CEO: Half of Base Chooses FiOS Bandwidth Upgrade

Half of Verizon FiOS Internet customers have opted for a FiOS bandwidth upgrade, said Verizon CEO Lowell McAdam.

Verizon uses the brand name Quantum for its higher-speed data services, which offer data rates as high as 500 Mbps. Upgrades to Quantum are being driven by increased use of video and the proliferation of WiFi-capable devices within customers’ homes, McAdam said.

McAdam added that Verizon could easily raise FiOS data rates to a gigabit per second but has no near-term plans to do so. For residential users to need gigabit connectivity, the industry “has to come up with new apps besides video and more devices,” he said.

Previously FiOS data and FiOS video had similar take rates, but more recently the company has been signing up 20% to 40% more broadband customers. This shift may be driven, in part, by customers shifting toward over-the-top video options. But McAdam isn’t concerned about the possibility of more customers moving in that direction because margins are better on broadband.

“If they convert over, that’s fine,” he said. “The more traffic into the home, the better for us because we’ve got the technology that’s future-proof. We’re in the best position to capitalize on high-volume traffic going into the home.”