Verizon Scaling Back Fiber Optic Services? (VZ)

| About: Verizon Communications (VZ)

The Wall St. Journal has an article indicating Verizon (NYSE:VZ) is scaling back its deployment of FiOS. The article is short on technical details and any public information about exactly how and why this is taking place. Here’s a key quote from the article:

To save time and money, Verizon has scaled back its “fiber to the home” plan to something more modest that doesn’t necessarily put fiber in people’s living rooms.

… and more detail….

Originally Verizon talked of stringing optical fiber lines — the same type that form the backbone of the world’s telecommunications infrastructure — directly into the living quarters of homes. Now, Verizon says it has decided in many cases to stop the fiber rollout outside the home. From there, old-fashioned coaxial cable will carry the data indoors. Verizon says the few feet of cable shouldn’t slow data transmission speeds and may save more than an hour on the usual six-hour installation.

Anyone have more information on whether this is accurate? Where did this originate? It makes no sense for the following reasons:

  • Implies active electronics on the pole outside the home
  • Verizon doesn’t own the coax outside the home, the cableco does. I don’t think they will share. Stringing new coax isn’t any easier than stringing fiber
  • Why go through all of his to save an hour?

I wonder if the WSJ goofed on this one. Some information from Verizon is needed.