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Verizon Challenges Cable With Fiber TV

By Ed Oswald and Nate Mook, BetaNews

April 18, 2005, 3:33 PM

Verizon on Monday touted its FiOS television service as "a compelling alternative" to cable TV. However, the company has a major roadblock ahead: laws. Currently, to offer any kind of video across its fiber networks, the law stipulates that Verizon would have to obtain a second franchise from local authorities.

The requirement could prove critical in Verizon's rollout of its proposed television service, which would be the first major threat to cable operators since satellite TV. Using its ultra-fast fiber optic lines, Verizon can deliver advanced phone, Internet and television services to residential customers in a single package.

Ivan Seidenberg, chairman and CEO of Verizon, says that his company should not need a second license, as FiOS TV is only an extension of its current telephone franchise. However, several authorities have said that Verizon's new service is akin to cable television, and the company needs a new franchise and thus local approval.

Because FiOS would stream TV channels on demand, it paves the way for a virtually limitless number of programming opportunities. Seidenberg called on broadcasters to support Verizon's cause at the NAB 2005 show in Las Vegas.

"We ask you to lend your persuasive voice in support of clearing away this barrier to video competition and speeding the day when America's communications companies can use our fantastic resources to offer your content and provide a true and compelling alternative to cable," Seidenberg said.

He added that Verizon would work with broadcasters to protect their intellectual copyrights. Whether this meant that users' capabilities to record and save programming on the service would be limited was not mentioned.

Verizon's FiOS initiative promises to bring fiber optic lines to 3 million households by the end of 2005. The Internet component offers 30 megabit per second downloads and 5 megabit per second uploads; however, the television service will operate at a speed of 100 Mbps.

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By mrmr64

edited Apr 8, 2007 - 6:25 PM

Why not let Verizon have it's share we should have a variety and choice. These money gauging Cable TV companies had their share for some time and the cost only got higher and higher. It seemed to be ok when the cable TV companies went the xtra mile and offered telephone service with their package but it soon became a big debate when verizon stepped in with their service offering cable tv. So why shouldn't Verizon offer cable Tv with their service.

Score: 0

By mjm01010101

posted Apr 19, 2005 - 4:45 PM

From what I hear Verizon has been tearing up hoods to get that fiber installed. Streets left in tatters, people without *any* connectivity for weeks because of their digging-- all around a complete mess.

I still think it's worth it. Fiber to the curb is pretty much the last connection we'll need cable wise for a long, long time. There's always airborn communication (WiMax, etc) that can get other areas. My concern is competition from more than two providers, and the ability to have a lower bill on Television if I don't want 90% of the crap that is on TV now goes through. Otherwise I just won't get it.

Score: 0

By Maestr0

posted Apr 19, 2005 - 5:53 PM

They came and tore up the street in from of my yard..and then put everything back. I know they are getting some heat, but from a first hand account, they are doing fine.
No, I'm not an Verizon Honk. In fact, I have brighthouse.

Score: 0

By eunichman

posted Apr 19, 2005 - 2:50 AM

IMO, the whole "franchise" thing stifles growth and competition. Basically, with franchising, the consumer is stuck with one choice - as the company that gets awarded the contract to offer services in a specific area is guaranteed that they and only they will offer services to that area. eliminate franchising totally and let the consumer decide what they want, not what they are being force fed >.<

Score: 0

By man_t

edited May 10, 2005 - 11:42 AM

The real issue is not about exclusive rights to operate. I don't think local franchising authorities can lawfuly make deals of that nature. I do believe, they would as you, welcome the competion. As long as they don't lose money for the local residents as well. How many thousands of dollars do you think your local Cable provider generates for your local Goverment, due to the Franchise Tax/agreement?
I'd bet it is a lot more than the taxpayers in your town are willing to make up, or generate from other sources like new taxes.
If Verizon is given a free pass, it would be unfair and a tragic blow to your local tax base revenue. And that, in my view would penalize everyone, young and old, consumer of these services or not.

If the local goverment in your town loses money because the incumbent providers customer base is shrinking, due to a competitor. A competitor that has no obligation to pay a percentage, based on total annual revenue. Everyone but Verizon loses. The money lost has to come from someone, somewhere.

Oh, I almost forgot, Direct TV and Dish Network currently enjoy freedom from franchise agreements or contributing to your local tax base. I wonder where that money is being made up ?

Score: 0

By ArabianNight

posted Apr 18, 2005 - 4:01 PM

wow 30 mb/s dl.... 100 mb/s tv....nice...definetly a choice over cable!!!

Score: 0

By Loco-Dogg 60

posted Apr 18, 2005 - 7:16 PM

Yeah it's sweet, I got 15MB/2MB for $50 a month not bad since cable is about the same plus have to have cable tv just like with DSL you have to have a phone but with the fiber you can just get the data and that's it.

Score: 0

By daq

posted Apr 18, 2005 - 5:13 PM

Don't forget to add that new Fiber network card u'll have to buy, plus the price of running cables to your house , plus the price of the service itself and u'll end up having to sell the house to afford this.

Score: 0

By eunichman

posted Apr 20, 2005 - 2:14 AM

buying newer hardware to get faster speed is something I would do... buying new hardware to run the newest ms os and still run slower is something I wont, but every day people flock to the stores for upgrades just to run the latest thing from redmond and every day their computers get slower and slower.

Score: 0

By athome

posted Apr 18, 2005 - 11:22 PM

Exactly! Most likely they will have some way of changing the signal to Analog and therefore the ideal speed will convert from 30 to 10-15 and therefore be at or near that of other providers.

Only 3 million homes by end of 2005. The wait will be on! Just like when comcast, charter, and SBC first started and are still telling their customers(It is not in your are yet)

Score: 0

By Kahuna

posted Apr 19, 2005 - 9:26 AM

Guys need to do a bit or research.

You do not need a fiber network card. The ONT on the side of the house will do the Optical-Electrical Conversion for you. If your house is wired with CAT5 you are good to go if not Verizon will wire your first Jack for free.

Three Million homes is a massive buildup. Imagine building new infustructure to 3 million homes? Verizon has spent an unbelievable amount of money to get this rolling and will not turn a profit for some time.

Score: 0

By dkdon

posted Apr 18, 2005 - 8:04 PM

i have fiber optics, surewest broadband offers it here.. you dont need a new network card, the install was free and for telephone/10mbit up and down internet and about 2-300 channels of tv and on demand movies it costs about 120$ a month. I hardley call that selling your house. if u have sattilite or digital cable and full phone service and cable/dsl internet u will most likely be playing more without the fiber. fiber is cheap now, and its real nice, hopfully they will end up making everything on it be "on demand"

Score: 0

By ggvrsn

posted Apr 18, 2005 - 6:11 PM

Dont forget that Verizon should actually deliver this product. They usually say DSL .. and great alternative, but not all the people who hear the news will get this in their living area .... who is verizon kidding with cable competition ?

Score: 0

By Skilly

posted Apr 19, 2005 - 4:47 PM

I think we may have Cable company interests posting on this Blog... Why would any consumer be interested in more red tape helping outmoded monopolies? There is no Logical reason for these regulations except to keep mass media controlled by fewer corporate interests.

The more of us whose eyes are open to the reality of this the less influence special interest groups have over Legislators to maintain the status quo. So spread the word and understand the power we do have!

Score: 0

By px208

posted Apr 19, 2005 - 8:58 AM

Actually, Ive had been using Verizons cable service, AmeriCast a while back. I don't know if they even exist anymore....

Score: 0

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