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I'm not even going to get into whether they're being honest about it, but when I called to ask about transferring my service to a new apartment, Verizon told me that they'd stopped rolling out FIOS to new locations because they didn't have the fiber for it.

I kind of just assumed that it was the prelude to asking for more money, but it seems like there's likely some truth to it.

Backbone capacity is not nearly as big of an issue, despite traffic growth. Long haul DWDM systems get denser, higher bit rate transponders get built, etc to push more bits across the same fiber.

The growth of bits/second per fiber has also been exponential.