Strong Competitive Impact From Verizon's FiOS Broadband (VZ)

| About: Verizon Communications (VZ)

Verizon Communications (NYSE:VZ) reported earnings on Tuesday. The FiOS data that was provided was more detailed than in the past and IP Democracy has a good summary of the call.

My informal walking-around the neighborhood survey (looking at the splitter drops and counting connections) jives with the 10-15% penetration after 6 months. The full transcript of the earnings call can be found at Seeking Alpha, and that’s where I found a neat little factoid.

David Barden - Banc of America Securities

… on the FiOS business, could you speak to the conversion rate from old DSL customers to new FiOS customers?

Doreen Toben - CFO

… It’s just under a third conversion to DSL to FiOS.

This means that 2/3 of incremental FiOS customers are either new broadband subs or converts from cable. Considering Verizon has targeted communities that already have high broadband penetration (they, of course, will deny this), and the aggressive response from Cablevision (NYSE:CVC), this means FiOS broadband is having a strong competitive impact.