Verizon spokespeople would not say how many FiOS customers have been affected by the HD STB situation, how many back orders need to be filled, or when it expects to have all the backorders filled. The carrier would also not estimate how much the “free SD” stopgap solution will end up costing it.
Infonetics’ Heynen suggested that Verizon may, as a result of the HD STB shortage, add a second supplier. “Now, a second supplier won’t eliminate the shortage problem,” he said. “It will just shorten the duration of the problem. In the STB and CPE business, in general, forecasting on the part of the service provider is the most critical piece.”
Though Verizon is far from a long-time forecasting veteran for in-home CPE needed for certain landline TV services, certain key variables were not surprises. Prices for HD TVs have been plummeting for years, as expected. And sales of high-end electronics, specifically big-screen TVs, are always high before, during and after the holiday season. Add in bad weather that keeps people inside at that time in much of the country, the end of the NFL regular season, the playoffs and the Super Bowl, and you have a recipe for a rush on HD TVs.
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