cross subsidy.. the fact is wireless and wireline cross subsidize each other..
and until recently.. wireless was pulling wireline's weight since the first days of FIOS.. no more, the price hikes took care of that in short order.. FIOS will be profitable in less than five years... that is if they can maintain a 25% market share in major metro areas (bringing the 15% upto 25% or higher). peace with the union depends upon these higher revenue streams being as rosy as that plus 40% of the wireless market. for accounting reasons, this is why they will probably NEVER spin either company off.. if regulators force the change, then it could easily happen but of their own volition? nope...
However, let's review the facts..
Verizon ONLY enjoys a 25% fios market share in it's most competitive market: NY Metro and in other areas it's 15% or less.
Verizon has an end game for the union.. that is.. no more union-- sure they'll make peace until that contract expires.. but once it does?!? adios' CWA... once it expires, there will be nothing to talk about.. the workers will be luck to get a pay freeze vs a pay and staff cut..
The price hikes will come back to bite both Verizon and AT&T later on.. there's only so far you an stretch a rubber band which is the affordability of wireless and wireline service before it snaps. However these are headwinds they have to worry about after the political season is well over..
I thought they reported about a 35 percent penetration rate. Am I wrong about that??
Edot:Oops, you meant NYC. Nevermind.
reply to tmc8080
You said the same thing LAST contract. The next one is always the last. You sound like my Grandfather claiming next year is the year the Mets will win it all.
15% in the NYC Metro area? You are completely off your rocker my friend.
reply to tmc8080
Fios is in the black already, has been for 2 years now. DC metro area is a 40% market share if not more, close to 1 million subs.