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> Yes, ISP customers are paying for access but the business reality is that the ARPU per subscriber is decreasing every year at a rate lower than additional subscriber acquisition can sate.

ARPU is going up while Verizon's bandwidth costs are going down (peer with Netflix/Google/YouTube/Facebook and a huge chunk of your traffic is taken care of).

http://newscenter.verizon.com/corporate/news-articles/2013/0...

"FiOS revenues grew 14.7 percent, to $2.7 billion in second-quarter 2013, compared with $2.4 billion in second-quarter 2012."

vs.

"Verizon added 161,000 net new FiOS Internet connections and 140,000 net new FiOS Video connections in second-quarter 2013. Verizon had a total of 5.8 million FiOS Internet and 5.0 million FiOS Video connections at the end of the quarter, representing year-over-year increases of 12.2 percent and 12.6 percent, respectively."

(Revenue growing faster than new customer growth and a very high ARPU.)




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