Scott Berry

FiOS, Cellular Won't Save Verizon - Sanford Bernstein

FiOS is a defensive play to stop erosion on local loop services, with an option on undeveloped bandwidth hungry apps.

Note they are tearing out copper wherever fiber goes in. This sharply reduces opex and allows them to upsell video, which they couldn't before. Line losses to wireless--much going to Verizon anyway--and competition from cable is offset by a lower plant operating expense and revenue upside.

The option comes from future-proofing their outside plant. First fiber to the home wins.