Verizon has a very long history of being indecisive regarding its FiOS network. At times the company has seemed eager to build out and expand its fiber optic network to new markets, while other times the company has withdrawn from its fiber optic fervor. Now it seems as if the pendulum has swung even further and now Verizon is looking to sell off at least some parts of its fiber optic network. Who will buy components to a high-end fiber optic network, and what will they do with it? Will Verizon have another change of heart? These are all great questions worth considering.
Who Would Buy a Fiber Optic Network?
The question of who would buy a fiber optic network is a good one, but one thing is for sure: the Verizon FiOS network in place is already incredibly fast. Verizon currently markets speeds of 150 Mbps down and 35 Mbps up, both are easily industry leading compared to DSL and cable internet services. There are also confirmed reports that FiOS engineers have tested 1 Gbps services at extended ranges with the intent of deploying even faster services to a wide audience.
Frontier has stepped up to bid on several markets, and the company is no stranger to purchasing broadband markets. The company has even purchased DSL markets from Verizon in the past, as well as from FiOS arch-rival U-verse by AT&T. Other companies may eventually acquire FiOS markets as well, but they may do exactly what Frontier has done: keep the markets intact.
In fact, some may even use it to launch a new network or integrate into an existing network. Google is working on at least 2 separate gigabit fiber optic networks, and those are going to launch an entirely new broadband race. A provider could get a serious leg up on the competition by starting with a solid foundation based on an existing and profitable FiOS network serving a defined market.
Expansion a Possibility?
Will a new owner of an existing FiOS market be able to complete what Verizon started? The answer is: certainly. FiOS was developed to be easily expandable and upgradable from the very outset, and the speed tests prove it. In fact the FiOS speed tests engineers have conducting providing consumers with upwards of a gigabit per second performance shows that the strength of fiber has not yet been fully realized. Faster speeds and more consumers are both entirely possible, but it may require a great deal of capital to realize such goals.
To that end Frontier may not be the best bet as the company has not shown a tendency to make significant growth to markets that they acquire. Instead the company strives for greater penetration and often opts to allow their acquired technological advances to languish in the face of competition. Whether or not FiOS will be kept at its current performance levels or whether or not it will continue to evolve at the same mind boggling rate that it has under the stewardship of Verizon is unclear.
Will Verizon Change Course Again?
Verizon may ultimately decide to change course yet again and determine that FiOS is worth keeping. After all, the network is very efficient and part of a larger network scheme that includes DSL and wireless services that can be fueled by a fiber optic backbone. Verizon’s changes of heart regarding FiOS are often sudden and completely without warning. It is entirely possible that Verizon will once again backtrack or may be using the offer of some Verizon markets as nothing more than a clever ploy. The company is just as famous for being coy and mysterious as it is for its fast broadband services.