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Verizon Continues to Invest Heavily in Fiber-Optic Broadband Network

5:55 am on January 31, 2007 | Category: Business, Corporate, Internet, Telecom Services, Television

America’s second largest telephone provider, Verizon Communications, announced a 38% decline in fourth-quarter profit on Monday, but delivered encouraging news about the ongoing roll-out of its FiOS television network.

CEO, Ivan Seidenberg, says that the telecom giant is investing the bulk of its impressive wireless profits into building a faster broadband and TV network. The new fiber optic network is intended to compete with cable companies, such as Comcast.

â€œYou have to believe that the money that they’re spending is working,” commented Philadelphia Trust Co. investment manager, Richard Sichel, who invests heavily in Verizon shares. â€œIt looks as though it is.â€

The New York-based telephone operator’s net profits came in at $1.03 billion, or $0.35/share, for the final quarter of 2006, compared to $1.66 billion ($0.59/share) during the same period a year previous. Total revenue for the quarter increased by 26% to $22.6 billion, roughly in line with the expectations of analysts.

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