[April 30, 2012]

Strategy Analytics: Verizon Shows Strong First Quarter with Forecasted Growth to Continue Through 2012

The latest quarterly financial results from Verizon (News - Alert) show continued growth in the company's Pay TV and Broadband businesses, and the outlook for the remainder of 2012 is promising, according to the latest forecast from Strategy Analytics (News - Alert), "Service Provider Quarterly Recap and Guidance: Verizon (VZ) CYQ1'12." Not only did subscriber numbers increase, but Average Revenue per User (ARPU) has grown as well, following the trend of customers shifting from DSL to FiOS (News - Alert) Fiber service, as well as upgrading to faster Broadband speeds.

Strategy Analytics expects FiOS Broadband subscribers to top 5.6 million by the end of 2012. The company also owns 5 percent market share in the otal digital Pay TV market in the U.S. Growth in this business will result in nearly 5 million subscribers by the end of the year.

"Verizon has done an exceptional job of increasing its penetration in homes passed reaching 32.3 percent in the first quarter. Over the coming months, the company is going to shift from an expansion strategy to work even harder on converting customers in its existing footprint to FiOS Broadband and TV services," said Jason Blackwell, Director, Service Provider Strategies (SPS) at Strategy Analytics.

According to Richard Fontes, Analyst in the Service Provider Strategies group, "FiOS Broadband broke the 5 million subscriber plateau one quarter ahead of our initial forecast. More than half of FiOS customers are taking Broadband packages with speeds higher than the basic package, as well as bundling into triple play packages. This will lead to increasing blended ARPU for Verizon."

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds. Headquartered in Boston, MA, with offices in the UK, France, Germany, Japan, S. Korea and China, Strategy Analytics works with clients through annual multi-client services, management team workshops and custom consulting engagements. For more information, please visit http://www.strategyanalytics.com/

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