FiOS lead to ‘strong’ second quarter performance for Verizon

Verizon's wireline business saw operating revenues of $10.2 billion, a decline of 0.3 percent compared with the year ago quarter but an improvement over a shortfall of 2.2 percent in first-quarter 2011 revenues compared to first-quarter 2010 earnings. Newly acquired Terremark Worldwide contributed $98 million in revenue, representing 100 basis points of wireline revenue growth, in second-quarter 2011.

Revenues for Verizon's FiOS consumer retail FTTH services generated approximately 57 percent of consumer wireline revenues in second-quarter 2011, compared with approximately 48 percent in second-quarter 2010. Consumer revenues overall grew 1.3 percent compared with second-quarter 2010. Consumer ARPU for wireline services was $92.44 in second-quarter 2011, up 9.4 percent compared with second-quarter 2010. ARPU for FiOS customers remained more than $146, Verizon stated.

Verizon added 189,000 net new FiOS Internet connections and 184,000 net new FiOS TV connections in second-quarter 2011. Verizon had a total of 4.5 million FiOS Internet and 3.8 million FiOS TV connections at the end of the quarter.

FiOS penetration stands at 30 percent or more for both services, Verizon asserted. FiOS Internet penetration was 34 percent at the end of second- quarter, while FiOS TV penetration was 30 percent. Verizon’s FiOS network passed 16.1 million premises at mid-year 2011, the company said.

Broadband connections totaled 8.6 million at the end of second-quarter 2011, a 3.3 percent year-over-year increase. FiOS Internet connections offset a decrease in DSL-based Internet connections, resulting in a net increase of 62,000 broadband connections from first-quarter 2011.

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