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Verizon Gains Boston Cable TV License, Aims to Install FiOS
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U.S.telecom behemoth Verizon Communications Inc. (VZ - Free Report) is known for its diversified business model, covering different fields like communications, technology, wireless industry, Internet of Things (IoT) and the media video and digital platform.
To this end, according to a recent Boston Herald, Verizon recently received the final nod from the City of Boston for the Final Cable Television (CATV) License, which allows it to operate in Boston. The license approval is based on the $300 million partnership announced by Verizon and Boston in Apr 2016 to install Verizon’s high-speed FiOS (Fiber Optic Service) Internet service throughout the city of Boston.
The license covers three Boston neighborhoods: Dorchester, the Dudley Square neighborhood in Roxbury and West Roxbury. The rollouts will start from Dudley Square Innovation District and gradually cover Roxbury, Dorchester, Roslindale, and West Roxbury.
FiOS is Verizon’s fiber optic Internet and television offering. Verizon aims to build a fiber optic platform in the entire city of Boston. The rollout is expected to take place over the next six years. To date, Verizon has placed more than 160 miles of fiber throughout Boston, including large-capacity fiber-optic "feeder" lines above and underneath city streets. Verizon expects to serve 25,000- 30,000 homes and businesses through its FiOS by December end. Verizon has also vended parts of its FiOS operations to Frontier Communications Inc. .
By granting this license to Verizon, the city expects future expansion of the service area to additional neighborhoods, with the first round expected to include Hyde Park, Mattapan and other areas of Roxbury and Jamaica Plain.
Price Performance
Shares of Verizon have had a moderate run on the bourses in the past one year. Year to date, Verizon has gained 11.16% but failed to beat the Zacks categorized U.S. wireless national industry's growth of 16.51%.
To Conclude
The Verizon-Boston fiber-optic tie-up will see Verizon fulfilling the different needs of customers. The company will serve its residential customers and business customers and current and upcoming 4G and 5G wireless networks through a ‘one-fiber’ strategy by rolling out its FIOS in entire Boston. The strategy also has implications for wireless and smart city applications, which will address traffic safety and congestion along the Massachusetts Avenue Vision Zero Priority Corridor. The telco is even planning to conduct commercial trials next year.
We are impressed with Verizon’s efforts to develop a new approach of deploying fiber-optic technology. Moreover, the telco’s recent decision to divest its 29 data centers to Equinix Inc. (EQIX - Free Report) for $3.6 billion also bodes well for the company. We believe such innovative and strategic efforts on Verzion’s part to improve its business have helped it carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This recent deal will enable Verizon to compete against video service provider, Comcast Corp. (CMCSA - Free Report) in the Internet and cable television market of Boston. Comcast is also a cable TV behemoth in the U.S.
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Verizon Gains Boston Cable TV License, Aims to Install FiOS
U.S.telecom behemoth Verizon Communications Inc. (VZ - Free Report) is known for its diversified business model, covering different fields like communications, technology, wireless industry, Internet of Things (IoT) and the media video and digital platform.
To this end, according to a recent Boston Herald, Verizon recently received the final nod from the City of Boston for the Final Cable Television (CATV) License, which allows it to operate in Boston. The license approval is based on the $300 million partnership announced by Verizon and Boston in Apr 2016 to install Verizon’s high-speed FiOS (Fiber Optic Service) Internet service throughout the city of Boston.
The license covers three Boston neighborhoods: Dorchester, the Dudley Square neighborhood in Roxbury and West Roxbury. The rollouts will start from Dudley Square Innovation District and gradually cover Roxbury, Dorchester, Roslindale, and West Roxbury.
FiOS is Verizon’s fiber optic Internet and television offering. Verizon aims to build a fiber optic platform in the entire city of Boston. The rollout is expected to take place over the next six years. To date, Verizon has placed more than 160 miles of fiber throughout Boston, including large-capacity fiber-optic "feeder" lines above and underneath city streets. Verizon expects to serve 25,000- 30,000 homes and businesses through its FiOS by December end. Verizon has also vended parts of its FiOS operations to Frontier Communications Inc. .
By granting this license to Verizon, the city expects future expansion of the service area to additional neighborhoods, with the first round expected to include Hyde Park, Mattapan and other areas of Roxbury and Jamaica Plain.
Price Performance
Shares of Verizon have had a moderate run on the bourses in the past one year. Year to date, Verizon has gained 11.16% but failed to beat the Zacks categorized U.S. wireless national industry's growth of 16.51%.
To Conclude
The Verizon-Boston fiber-optic tie-up will see Verizon fulfilling the different needs of customers. The company will serve its residential customers and business customers and current and upcoming 4G and 5G wireless networks through a ‘one-fiber’ strategy by rolling out its FIOS in entire Boston. The strategy also has implications for wireless and smart city applications, which will address traffic safety and congestion along the Massachusetts Avenue Vision Zero Priority Corridor. The telco is even planning to conduct commercial trials next year.
We are impressed with Verizon’s efforts to develop a new approach of deploying fiber-optic technology. Moreover, the telco’s recent decision to divest its 29 data centers to Equinix Inc. (EQIX - Free Report) for $3.6 billion also bodes well for the company. We believe such innovative and strategic efforts on Verzion’s part to improve its business have helped it carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This recent deal will enable Verizon to compete against video service provider, Comcast Corp. (CMCSA - Free Report) in the Internet and cable television market of Boston. Comcast is also a cable TV behemoth in the U.S.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>