How much will Verizon pay to build out its fiber optic network?

Verizon's FiOS project is the only major U.S. telecom operator that is running fiber directly to each customer's home. This approach is known at FTTP; or Fiber To The Premises.


Customers should love FTTP because of the bandwidth it provides. The Verizon fiber can support multiple phone lines, 60-megabit-per-second Internet access and over 400 television channels and still have plenty of excess capacity to spare for future services. Investors tend to criticize FTTP because of its huge cost.

Verizon is said to be spending $18 Billion for FiOS and that by 2011 the fiber network will pass 18,000,000 homes. Yes, you read that correctly. Just to give Verizon a chance to win over a FiOS customer, they will spend on average $1000 per home.

Verizon is banking on two things coming true. First, that the power of FTTP will attract new customers. Second, futuristic services will be very cost effective for them to offer because they are already ready and will not require network upgrades.

See also: Verizon IPTV is vital to company's fate