Verizon’s Fiber Network Deployment Gains Momentum

Verizon Communications Inc. on Wednesday provided investors and analysts with new financial and operational details concerning its broadband network .

Outlining progress, as the deployment of next-generation fiber-optic-based FiOS services gains momentum, key Verizon business leaders expressed confidence that FiOS investments would generate positive economic returns and shareholder value, based on several factors. Those factors include Internet services gaining market share in a growing broadband market; early FiOS TV successes indicating a strong customer preference for choice among video providers; innovative services differentiating FiOS from competitive services and driving new market opportunities; and the company’s fiber deployment reducing network costs and positioning ongoing savings in operating expenses.

Verizon said it plans to pass 18 million premises with its fiber network by the end of 2010 – more than 50 percent of its wireline-service area.

Verizon said that FiOS will generate positive operating income beginning in 2009, based in part on growing revenue from FiOS services combined with declining operational costs due to fiber network efficiencies. In addition, the company’s total fiber investment is expected to be EBITDA-positive in 2008, and total $18 billion in net capital from 2004 through 2010. The company said it expects to realize savings of approximately $1 billion in annual, ongoing operating expenses by 2010, as a result of the efficiencies gained from fiber network facilities.

Verizon Communications Inc. www.verizon.com

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