Can Verizon's Fios and Fiber Push Deliver Strong Growth Impetus?

Core Insights - Verizon Communications Inc. is intensifying its focus on fiber to enhance high-speed Internet access for homes and businesses, aiming to combine fiber with its 5G network for improved connectivity and next-generation digital services [1] Fiber Expansion Strategy - Verizon has partnered with Eaton Fiber to fund and construct high-capacity fiber networks beyond its current Fios coverage, allowing for rapid expansion without incurring full construction costs [2] - The company is also expanding its enterprise fiber network through a partnership with AWS to create low-latency links between data centers, supporting cloud services and AI workloads [2] - Verizon aims to add 650,000 new fiber connections by 2025 and expects to exceed 1 million annually after acquiring Frontier, targeting a combined fiber network reach of 35-40 million passings [3] Market Performance - In Q3 2025, Verizon reported 61,000 net additions for Fios Internet, marking the highest quarterly growth in about two years [4] - The global Fiber to Home market is projected to reach $110.44 billion by 2030, growing at a CAGR of 12.4%, driven by rising demand for high-speed broadband [4] Competitive Landscape - Verizon faces competition from AT&T, which is expanding its fiber network to over 30 million locations and plans to nearly double that by 2030 [5] - T-Mobile has launched Fiber Home Internet for over 500,000 households and is rapidly expanding its fiber network through acquisitions and joint ventures [6] Financial Metrics - Verizon's shares currently trade at a price/earnings ratio of 8.44, lower than the industry average of 11.86 [9] - Earnings estimates for 2025 have decreased by 0.4% to $4.68 per share, while estimates for 2026 have dropped by 1.2% to $4.83 [10]