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Report: Verizon Fios steals cable subscribers

A new report details how Verizon's Fios service is affecting cable subscriber numbers in Massachusetts.

Verizon's Fios TV service is stealing business from cable operators, according to a report published by OneTrak this week.

The report focused on 34 cities and towns in Massachusetts where Fios TV is offered. The report said that some incumbent cable operators could experience subscriber losses of 10 percent or more because of Fios competition. Traditional cable overbuilders, like RCN, will likely feel the brunt of the defections, the report said. (Overbuilders are companies that use or build on existing operators' networks to offer service.)

According to the report, Comcast lost about 2.6 percent of its subscribers, or 5,216 subscribers out of 204,160, in communities where Fios TV is offered. And RCN has lost about 7 percent of its subscribers, or about 1,813 subscribers out of 25,895. Meanwhile, Verizon gained 11,982 subscribers in these markets. OneTrak said it expects Verizon to continue to grow its TV business in the double digits in markets where it launches the service.

For its report, OneTrak used the three companies' year-end subscriber numbers, which the Massachusetts Department of Telecommunications and Cable made public recently. Statistics for the three companies are as of December 31, 2006.