fios_vs_uverseIf you dig into Verizon and AT&T 2Q09 numbers, you find some interesting things. When comparing the two, one possible assertion is that FiOS does appear to be outperforming U-Verse. I freely admit, it’s not exactly an apples to apples comparison. But since FiOS and U-Verse are their respective company’s premium brand delivering a ‘compelling triple play bundle,’ I think it’s fair to do some comparisons.

If providing details and metrics about progress equates to performance, FiOS beats U-Verse – easily. AT&T is quite coy about the performance of U-Verse in their quarterly reports. They don’t offer straight penetration data, often mixing U-Verse metrics with other products, leaving a lot to be desired. While Verizon could offer more details, they definitely offer much more insight on FiOS. Does AT&T have something to hide?

Why is FiOS outperforming U-Verse? Consider these observations:

Advertisement

  • Video Penetration – Verizon FiOS TV penetration stands at 24.6% – a pretty decent number . Unfortunately, it’s hard to compare FiOS’ figure to U-Verse. AT&T combines U-Verse and DBS video subscribers and offers a combined TV penetration of 13.8%. As for U-Verse AT&T says “U-verse TV company wide penetration of eligible living units is now in double-digits, and in areas marketed to for 18 months or more, penetration percentages now are in the high teens.”
  • Broadband Penetration – Verizon FiOS broadband penetration stands at 28.1% – another decent number. AT&T offers no penetration data for U-Verse broadband. While actual U-Verse broadband penetration numbers are lacking, by my estimation, U-Verse’s total broadband connections of 1.6 million represents a significantly smaller penetration percentage than the 28.1% represented by FiOS.
  • ARPU – Verizon reports that FiOS customer ARPU is $135, which contributes to a higher across the board ARPU of $72.59 for Verizon. AT&T offers no insight into U-Verse customer ARPU, but its overall consumer ARPU is listed at $64.44, 11.2% lower than Verizon.

It’s important to recognize this analysis focuses on operational metrics, not financial. There are those that will argue, in addition to these observations, the ROI for U-Verse and FiOS have to be considered. That’s the subject for another day.  FiOS does appear to be outperforming U-Verse, at least for the time being. Verizon’s decision to overbuild AT&T in some Texas markets makes a little more sense.

Join the Conversation

One thought on “Verizon FiOS Outperforming AT&T U-Verse?

Leave a Reply

Your email address will not be published.

Don’t Miss Any of Our Content

What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.

You have Successfully Subscribed!