Verizon Expects Real Cost of FiOS Roll-Out to Decline in Months to Come

6:55 am on December 9, 2006 | Category: Business, Internet, Telecom Services, Television

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Verizon Communications released some encouraging financial news this week, predicting that dilutive effect of its fiber optic networking efforts on quarterly profits would begin to diminish in 2007.

The New York-based telecom provider is currently in the process of laying an $18 billion fiber optic cable network, in hopes of gaining market share in the high-speed broadband and IPTV businesses. The high cost of this network, however, has been cutting sharply into the company’s quarterly profits in recent months.

Verizon says that this effect will likely peak sometime this quarter (Q4/2006), and gradually decline over the next couple of years, making VZ stock more attractive in the months to come.

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    Edited by Jeremy Maddock