SOURCE: Pike & Fischer

August 28, 2006 12:24 ET

Pike & Fischer Report Says Verizon May Be Too Optimistic on FiOS Service

SILVER SPRING, MD -- (MARKET WIRE) -- August 28, 2006 -- Verizon will likely fall short of its market penetration goals for its fiber-optic service (FiOS), consultant Pike & Fischer predicts in a report just published.

Although it acknowledges that the Verizon service is growing rapidly, Pike & Fischer concludes Verizon's forecasts for FiOS are too rosy when compared to the historic growth patterns of other communications services, like DSL. However, a proposed law that would make it easier to deploy television service over the FiOS network could help the company accelerate its acquisition of new customers, the report says.

With its FiOS service, Verizon is delivering telephone service, broadband, and, in many markets, multichannel video programming. The Pike & Fischer report describes the service in detail, including homes passed, sales and penetration rates, pricing, and technology.

Pike & Fischer states that Verizon's FiOS service will probably be available to fewer households, and have a lower penetration of those households, than Verizon predicts.

Even so, P&F figures that by the end of 2008, Verizon could amass about 2.2 million FiOS customers -- about 17.4% of premises passed and 14.4% of total broadband units.

Pike & Fischer, a publishing and consulting company owned by BNA, Inc., regularly profiles all the major players in the broadband industry. It has been covering the telecommunications industry for more than 50 years.

Titled "Broadband Business Analysis: Verizon FiOS," the Pike & Fischer report is priced at $329. Orders may be placed at 212-576-8741. For additional information about P&F's broadband reports and analyses, see www.broadbandadvisoryservices.com or email: jping@pf.com.

Pike & Fischer, a BNA company, is based in Silver Spring, MD. Executive summaries of the report are available to the media. Contact Scott Sleek at 301-562-1530, ssleek@pf.com for inquiries about the contents of this study or to schedule an analyst briefing. Contact Jonathan Wentworth-Ping at 212-576-8741 / jping@pf.com.

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