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On left, where the FiOS box goes. On right, the old telephone box. The old telephone box and the copper wiring stays, but essentially becomes obsolete once FiOS is up and running. The phone signal is carried over the fiber-optic network. It take a few minutes for Verizon to transfer your number to the new network. Copper wiring inside the home remains in tact. Contrary to some reports Verizon doesn't strip the home clean of copper wiring.
Another look at the soon to be obsolete telephone box.
Once the box is connected to the home the connection to Verizon's network is completed across the street.