GigaOm pointed out yesterday that Verizon (VZ) now has about 1.1 million FiOS fiber-to-the-home customers being delivered voice, broadband and TV. The telecom is adding 2,600 customers a day.
For those in the media and on Wall St. who believed that FiOS would be a $23 billion train wreck, the early signs are that the system may do well.
But, fiber has had a big drawback and that is raising Verizon’s installation costs considerably. As Barron’s points out: "Existing fiber cable can’t be bent without significant loss of signal, requiring expensive corner-turning devices." But, Corning (GLW) seems to have solved that problem. In the near future, it is bringing fiber that bends without signal problems to market.
The product should cut some of Verizon’s costs for installing FiOS in seven million homes, which is its goal. It should also help the revenue picture for Corning’s telecom business.
Better earnings, lower costs.
Douglas A. McIntyre
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
