FiOS

Seidenberg sees better days ahead

Dan O'Shea — Wed, 07 Jan 2009 20:25:21 -0500

Verizon Communications CEO Ivan Seidenberg, speaking at an investor conference, painted a somewhat rosier picture for 2009 than a recent analyst report that predicted just 2 percent growth for the company this year. Verizon's stock price fell sharply after that report. But, Seidenberg said that despite general economic softness and ongoing pension expenses that are hurting just about every other telco, wireless growth will remain strong, expected enterprise market dips will not hurt the company, and Verizon's FiOS network is increasingly off-setting legacy landline weakness.

For more:
- Telephony has this report

Consumer Reports: Fiber-optic services best

Doug Mohney — Mon, 05 Jan 2009 21:36:08 -0500

Released on the eve of the 2009 Consumer Electronics Show, Consumer Reports latest report anoints Verizon FiOS and AT&T U-verse bundles as the most "consistently satisfying providers" for Internet, TV, and phone services.

Of course, in areas where you can't get a telco-delivered bundle, Consumer Reports (CR) recommends a "highly-rated" cable company as the next best choice. CR notes that consumers may not have a choice choosing a cable provider, but cites Cox, CableVision, Bright House and Wow as "fine alternatives" to fiber-optic services. Otherwise, consumers are kind of stuck with a bundle with satellite DirecTV service as the next palatable alternative.

CR is hot for bundling, noting that competition between cable, satellite and fiber has driven down rates on Internet, phone and TV services, and that bundling makes sense for households served by fiber or a better cable company.

However, all is not roses for the phone companies. There's a "high incidence" of billing complaints and feeds with triple play packages. Verizon FiOS also is below average for customer service, while cable companies had (no shock in this reporter's mind) fewer customer service problems overall.

For more:
- Press release from Consumer Reports on the goodness of fiber-based services.

Verizon Philly FiOS deal by end of year derailed

Doug Mohney — Thu, 11 Dec 2008 16:35:06 -0500

Verizon's push to have a FiOS franchise in Philadelphia by the end of 2008 has been bogged down in city committee meetings and a play by a minority-owned cable company to get into the action.

Wilco Inc., which owns a small part of Philadelphia's cable franchise, is lobbying for an equity partnership with Verizon. Wilco services around 88,000 customers, mostly in Philadelphia Housing Authority units. A city councilman reviewing the Verizon proposal is concerned Wilco might lose customers as PHA builds more single family homes, and he has questions about outside minority contractors involved in the Verizon installation.

Due to the delays, the full City Council can not act until January on the proposal, but Verizon can "live with January."

There's also a push for Verizon to cough up more money up front for public access channels.

For more:
- Philadelphia Inquirer catches the latest news on Verizon's Philly push. Article.

Verizon vs. AT&T: No siblings, no rivalry

Dan O'Shea — Mon, 08 Dec 2008 11:22:53 -0500

Are Verizon Communications and AT&T rivals? Much was made of Verizon's move to build-out its FiOS network in a portion of AT&T's Dallas area market earlier this year. That decision made some sense for the telco because it already had network properties in the area stemming from its long-ago acquisition of GTE, the independent firm that was once the largest non-Bell company telco in the country. It's also the first case in which Verizon is testing FiOS in an area where it doesn't offer complete voice coverage, but no doubt Verizon has other former GTE properties around the U.S. that overlap or fringe on AT&T markets, so perhaps we'll see more situations in which FiOS goes head-to-head with AT&T's U-verse.

Clifford Holliday, an analyst with Information Gatekeepers, will be issuing a new report soon called "Overbuild: The New RBOC Advanced Access Architecture Strategy?," in which he examines this trend. There's something exciting about the possibility of the two biggest telcos over-building to compete with one another, in the same sense that watching Oklahoma and Florida compete for the national championship of college football should be pretty exciting next month. The Sooners and the Gators are not necessarily rivals, but they are the two biggest heavyweight powers in college football, and if there is anything America loves to see, it's the clash of best against best to determine who is really best. If it's anything like the Texas-USC game a few years back, it will live up to its billing.

I'm not so sure Verizon vs. AT&T will be worth the ticket, however. One reason is because Verizon so far is demurring from the idea that any heavyweight battle is brewing. Another reason is because any competition that does develop probably will be pretty slow to develop in any broad, meaningful sense. If Verizon enters an AT&T market (or AT&T enters a Verizon market, for that matter), it may not come off to the consumer as a clash of rivals. Verizon will just be the new guy, probably (though it hasn't said this) offering a discount to new customers to establish some kind of market foothold. It might also be hard to determine who really has the best offering in an economy that might drive customers to keep switching for lower-priced offers. Finally, AT&T and Verizon are not really the siblings we might think them to be-they once were cut from the same corporate cloth, but 25 years or so later, these companies have been changed and re-made so often that the only place you can call them siblings is in the history books.

Rivalries are fun to think about, but competition between service providers may not be much more than just that. If you are the new service provider in a market, your competition is Incumbent, Inc., and if you are the incumbent, your competition is everyone else.

-Dan

For more:
- Telephony has this report

Verizon 100 Mbps FiOS on deck in 2009

Doug Mohney — Thu, 04 Dec 2008 16:45:32 -0500

Verizon's technology director says the company is preparing to roll out 100 Mbps service next year for its fiber network. (Ed: Santa, I want it, and my MPA NXX is 703-971).

Speaking at an industry event today, Verizon's Vincent O'Bryne said 100 Mbps will be coming next year. The company has been running trials to a small number of users for at least a year, with the driver to the switch to greater speed being new services that will "greatly increase" home bandwidth consumption, including a lot of TVs, a number of in-home DVRs and network storage devices.

Looking forward, Verizon is already considering the next step beyond the GPON technology it began rolling out last year. GPON is expected to be OK for the foreseeable future, and standards for so-called post-GPON technologies aren't expected to be standardized for a few years.

Two years ago, Verizon VP Terry Densen said "very few" customers were asking for 100 Mbps at the time, but he dismissed the call for higher speeds as more competitive marketing tactics than customer behavior. We can only hope he is biting his tongue as DOCSIS 3.0 is being rolled out.

For more:
- 100 Mbps for FiOS will be here in 2009, says Verizon. Article.

Verizon does political battle for Philly FiOS

Doug Mohney — Thu, 04 Dec 2008 16:25:59 -0500

Last night at a regulatory hearing in Philadelphia, Verizon Communications said it would invest $1 billion in the city to compete with home-town favorite Comcast for TV and Internet services. City Council members like the idea of competition, but complained about how quickly it might happen and which neighborhoods would get FiOS service first.

Part of the problem seems to be hurt feelings and bruised egos. The mayor's office had quietly negotiated the proposed one-year franchise agreement over several months and unveiled it on November 13. Under a month seems to be a rush for some City Council members; there's also squabbling over which parts of the city are built out first.

Comcast is also not going to let its monopoly cable TV franchise in Philly disappear quietly and has rallied City Council patrons into a "go slow" mode. Comcast would also like more detailed plans (well, duh) on Verizon's build-out.

For its part, Verizon said it would like the franchise agreement approved this year and has warned that Philadelphia was competing with other cities for the $1 billion investment to install the fiber across the city. Verizon's party line is that cities with pay-TV competition could see $10 to $15 lower monthly bills.

Verizon's proposed agreement provides $11.3 million in grants and includes posting a $13 million performance bond. Comcast's deal with the city provides $10 million in free cable and internet services to the city and school system over 15 years.

For more:
- Philly.com covers inquisition of Verizon FiOS rollout. Post.

SPOTLIGHT: Verizon continues sports binge

Doug Mohney — Tue, 18 Nov 2008 00:30:52 -0500

Verizon FiOS has inked a new deal with CBS College Sports, adding to its deals with Major League Baseball and the NFL Network. Verizon will offer CBS College Sports on its Extreme HD and Sports TV package. It won't be the only TV carrier adding the CBS channel; Comcast and Bright House Networks are also going to carry the channel in the new deals announced today.

However, this is the latest deal to add more sports - ah yes, the all-important 18-34 male demographic - to the Verizon TV and broadband lineups. Last week, Verizon announced a deal to carry various Major League Baseball packages on FiOS. Two weeks ago, Verizon got an exclusive deal to carry NFL Network games on both TV and broadband, with broadband viewers getting access to multiple camera views.

For more:
- Broadcast & Cable reports on CBS College Sports deal with FiOS, others. Article.

Verizon bringing FiOS TV to Philly

Doug Mohney — Thu, 13 Nov 2008 15:34:18 -0500

The challenger, Verizon Communications, is coming to the City of Brotherly Love, against the home-town cable giant, Comcast. Lets get ready to rumblllllllllle!

More seriously, Verizon has negotiated a 15-year cable franchise deal with the city of Philadelphia. The bill has to go through hearings and City Council approval before moving forward.

Verizon says it could offer city residents FiOS TV service within a few years of getting a video franchise and expects to offer FiOS to about one-third of Philly residents within three years of government approval. Initial service areas include parts of West, North and South Philadelphia, Germantown and the Greater Northeast.

Comcast is not fazed by the potential for competition and will likely get the benefits of the ads on Comcast SportNet channel regardless of who carries it - FiOS TV already carries the channel.

Verizon has gotten some grief since it's launched FiOS mostly in wealthier towns and neighborhoods. The franchise agreement will provide up to 15 public access channels complete with financial support, franchise fees of around 5 percent of gross revenues, and four service centers.

For more:
- Philadelphia Inquirer reports that FiOS is coming to town. Article.

Verizon FiOS hits home with baseball

Doug Mohney — Mon, 10 Nov 2008 16:10:02 -0500

Verizon does love sports. In its latest deal, Verizon and Major League Baseball announced today that the MLB Network and the MLB Extra Innings Package will be offered on Verizon's FiOS TV service on a multi-year deal.

FiOS TV customers will be able to get MLB Network on standard definition (SD) and high-definition (HD) channels. The MLB Network is expected to reach approximately 50 million homes on TV systems - cable and telco - when it launches on January 1, 2009.

In addition, Verizon and MLB have reached a multi-year deal to provide the MLB Extra Innings package on FiOS TV, so baseball-crazy fans can get up to 80 out-of-market MLB games per week. The two agreements are the first TV arrangements between MLB and Verizon.

The Verizon/MLB deal is in good company. Last Friday, Verizon announced a unique carry deal between Verizon and the NFL Network. Under the deal, Verizon FiOS broadband customers would get access to the company's Thursday night games with a bonus to view the action from multiple selectable camera angels.

So what is Verizon working on with the NBA?

For more:
- MLB.com announces deal with Verizon. Press release.

The strategic power of fiber

Doug Mohney — Thu, 30 Oct 2008 15:16:14 -0400

When Verizon took the right decision to deploy fiber to the home, analysts flayed the company. "Too expensive," they whined. "Not worth the money." As recently as this summer, one analyst argued that it was better to do nothing, letting cable plunder and pillage voice service while land lines went away. Be like Qwest and do nothing.

You silly, silly fools.

This week, Verizon credits FiOS with driving a 2.1 increase in consumer revenues in legacy telecom markets year over year in a tough economy. And we're only seeing the tip of the iceberg in my estimation.

Having a 100 Mbps pipe (OK, so Verizon is throttling it to 50 Mbps, but let's not haggle here) provides a number of strategic advantages and future-proofing as the broadband wars get uglier. And they are going to get uglier. FiOS looks to be the key to make cable sweat and act as a spoiler in wireless competition.

Cable is a no-brainer. As FiOS lights up in a market-by-market fashion, incumbent cable companies have had to jack up broadband speeds and make triple play bundles. TV revenues used to be a ringer for cable, but now system operators can't be so smug. On top of that, cable companies have to make their own expensive upgrades to support faster broadband speeds under DOCSIS 3.0 and/or get everyone onto digital plant because they need their spectrum re-jiggered for offering more HD channels and speeds to compete with FiOS.

Typical DSL offerings are being outgunned by faster cable speeds and that triple play bundle, but they're also going to find themselves under attack in certain markets by WiMAX. Users will be able to get low-tier DSL speeds with mobility/portability, so what's not to like? Oh yah, not having to buy/deal with a cable modem - WiMAX will come "baked in" to laptops to there's one less box to futz with around the house.

Let's add the rascally part - femtocells. (Yes, this is wireless talk, but bear with me). Both AT&T and Verizon are moving forward with femtocells. The carriers can use their respective broadband networks to off-load cell towers of high speed data traffic (Thank you iPhone and future GPhone users) and expand in-house cellular coverage for voice traffic. Maybe net-net less urgency to upgrade/overbuild backhaul connectivity to existing cell towers. Pretty tricky, hm?

But that's not all. Provide a femtocell bundle with a cell phone and suddenly there's leverage point for a broadband/wireless bundle. The Millenials can have a cash incentive to pick a broadband connection to match their phone service.

Imagine running a couple of broadband wireless phones in the house, plus HD TV service, plus maybe a serious HDTV on-demand service going on in the background. Can you imagine it happening over a DSL connection? Sure you can - in Japan, with shorter copper runs and fiber in the basement of the apartment building! In the U.S., all the neighborhoods with picket fences, not so much.

Is this a powerful business model? Consider that wireless service is such a lucrative attraction that the cable companies are building out or making teaming arrangements for their own networks, and you may wonder if Verizon may offer femtocells at cost or free to FiOS customers.

- Doug

Long Island's broadband battle

Doug Mohney — Tue, 21 Oct 2008 10:24:13 -0400

Cablevision and Verizon are locked into a high speed war in New York that many of us hope to see in our back yards real soon.

Cablevision has picked up more than 2 million phone customers and is rolling out Wi-Fi. Meanwhile, Verizon has rolled out FiOS to most of Long Island, so home owners get the benefit of more choices for connectivity, more innovative services and lower pricing. Both sides in the battle are reaching for bundling and upgrading technology for faster and more diverse services.

While the battle between cable and phone companies has been brewing for quite a while, Long Island may be the place where the two sides take the gloves off. Cablevision has steadily offered faster broadband options as FiOS deployed into Long Island neighborhoods. And Verizon can't be comfortable with Cablevision picking up over 2 million phone customers in one of its traditionally dominant territories. On the other hand, FiOS has the whole "not shared" network infrastructure story going for it.

Even though the competition is effectively a duopoly (two large parties), both sides are fighting for market share and good numbers to show Wall Street. The result is competitive pricing along with a steady flow of new features to differentiate product offerings.

Perhaps the most important point here is the battle in Long Island is likely to be repeated in other territories where FiOS is challenging the cable company for TV and broadband customers.

For more:
- Examiner covers Optimum vs. FiOS service war in Long Island

Carrier IPTV connection rates up around the world

Doug Mohney — Thu, 16 Oct 2008 21:43:31 -0400

Worldwide subscriptions to IPTV rose to 17 million in the quarter ending June 30, a 11 percent increase from the previous quarter and a 95 percent increase from a year ago, says Point Topic .

Analysts say China and other parts of Asia will lead IPTV growth over the next five years; Western Europe currently has the most IPTV users, and AT&T is ramping up its U-verse service in the U.S.

While initial trials in Switzerland by Microsoft reportedly ran into technical problems, Switzerland IPTV subs rose 20 percent in the second quarter of this year to 80,000, capturing about 2.3 percent of households.

IPTV is also on a role in emerging markets in Eastern Europe, Latin America, and more exotic destinations like Sri Lanka and Ghana.

Gartner forecasts worldwide IPTV subscriptions will reach 54.8 million by 2010, up from an estimate of 19.6 million made at the end of 2007. If the prediction holds, 2.8 percent of households worldwide will have IPTV service by 2010, up from 1.1 percent this year.

In the U.S. Gartner says AT&T's U-verse and Verizon's FiOS services could reach 10 percent of households by 2010. Currently, AT&T has 549,000 U-verse subs and Verizon has 1.4 million FiOS subs, but only a "small percentage" of the subscribers get FiOS TV service.

The big news is in China, where an analyst at iSuppli estimates about 21 million IPTV subscribers by 2012, up from 1.9 million at the end of this year. South Korean phone companies are just starting to roll out live TV as a part of their IPTV services; regulators had limited phone companies to video-on-demand offerings. The country currently has 1.5 million IPTV users.

For more:
- Investor's Business Daily reports carriers worldwide hooking up IPTV to more subscribers. Article.

NY PSC modifies Verizon grounding edict

Dan O'Shea — Thu, 16 Oct 2008 09:46:12 -0400

Revisiting an ongoing story, the New York Public Service Commission finally has accepted a modified version of a proposal from Verizon Communications for addressing electrical grounding problems found in some FiOS installations throughout the state. The PSC actually rejected the recommendation from its own staff that Verizon not be allowed to pursue new FiOS installations in New York City until all of the problems were addressed. It's good news for the service provider as it tries to move aggressively into a new market.

Still, the PC took a tougher stance on other aspects of the Verizon proposal, saying the telco must fix grounding problems within 10 days of being identified, rather than the 60 day period Verizon proposed. The agency also said that 45 percent of known grounding problems must be fixed by the end of this year, and that all known problems must be repaired by May 31, 2009.

The issue is not over yet, as some observers are likely to argue that new installations should be halted. Also, the PSC and Verizon remain at odds about whether or not some gear involved in the installations should be grounded, and to what extent.

For more:
- read this story at Multichannel News

Verizon revamps wireline bills

Dan O'Shea — Wed, 15 Oct 2008 23:29:56 -0400

Verizon Communications has redesigned its bill for residential wireline services and is now sending the new bill out to customers in New York City. If that doesn't sound like huge news, the move actually comes after NYC competitor Time Warner Cable produced ads criticizing the length and complexity of the telco's bills. Customers also reportedly have complained about the bills.

The New York City market is especially critical to Verizon, since it made a pretty big effort to launch FiOS services there earlier this year. Verizon plans to roll out the new bill design to all of its residential customer by the end of this year.

For more:
- read this story at Xchange

Verizon offers home support, bonds with Firedog

Doug Mohney — Thu, 09 Oct 2008 21:54:02 -0400

Verizon has decided to get into the home electronics support services business, joining AT&T and Geek Squad while using Circuit City's Firedog for on-site tech support.

Services range from simple device protection all the way up to full on-site technical support. Device protection starts at $4.99 to $19.99 per month for gear replacement, including multiple computers, TVs and phones, regardless of the age of the device. The category also includes repair or replacement of remote controls, keyboards, monitors, mice and backup batteries for FiOS - an interesting catch with the FiOS service since users are expected to replace backup batteries themselves.

A 10-month subscription to "premium technical support" prices at $14.99 a month. It includes phone and online support for virus and spyware detection and removal, VPN networking problems, help with firewalls, problems with operations systems, gaming connectivity problems (I know some people that would pay for gaming optimization) and whatever else is up.

"Premium on-site support" will be provided through Firedog, with on-site visits ranging anywhere from $99.99 to $249.99 depending on the type of work that needs to be done.

For more:
- Multichannel News reports on Verizon Expert Care service.

NY PSC still mulling Verizon grounding issue

Dan O'Shea — Tue, 23 Sep 2008 19:06:15 -0400

The New York Public Service Commission is still mulling whether or not Verizon Communications has effectively responded to concerns about electrical grounding problems in its FiOS broadband installations throughout the state. Light Reading, which has been closely following this issue, reports that the PSC has "serious, new concerns" about whether the Network Review Plan Verizon submitted addresses the problems. The PSC added that a recent round of inspections didn't produce enough information about "the number of households or the nature of noncompliance involved." Verizon, meanwhile, said in a related filing that the problem has been overstated.

For more:
- see this story at Light Reading

Will Verizon drive high-speed prices down?

Jim O'Neill — Tue, 02 Sep 2008 08:24:31 -0400

Consumers looking for "the better deal" may be getting help from Verizon as it tries to slow the loss of DSL subscribers by offering its Internet-phone bundle at a 31 percent discount for new customers. The six-month-long deal puts a $45 price tag on services that currently cost $65 a month. The price reduction follows an industry low last quarter, when Verizon became the first provider ever to see a drop in DSL subscribers.

With more than 60 percent of U.S. households now sporting a high-speed Internet connection, new broadband customers are getting harder to find. Broadband growth slowed dramatically in the second quarter, with just half the new subscribers added compared to a year ago. Most of the growth, some 75 percent, was in the cableco camp. Experts say Verizon's move is likely to spur other telcos--and cablecos--to join in price slashing to retain customers in a maturing market, ala Europe. In fact, AT&T now is guaranteeing its pricing for two years.

"Phone companies can't just sit back and let cable companies take that much of the broadband market, or they will eventually cede everything," UBS analyst John Hodulik told the Wall Street Journal.

If the battle heats up, don't expect Verizon's FiOS and AT&T's U-Verse to escape unscathed. If prices drop too low, consumers may just opt for a little less speed for a big monthly savings, not exactly where telecos are hoping to head.

For more:
- See the Wall Street Journal story

Related articles
Verizon, AT&T telco war increasingly likely. Telco war report
Verizon just said that its FiOS network roll-out may reach more customers faster than anticipated Verizon report
Verizon: FiOS will blanket NYC FiOS report
Will economy hamper FiOS growth? FierceIPTV report

Verizon NY safety issue may result in customer credits

Dan O'Shea — Wed, 27 Aug 2008 23:03:11 -0400

On Aug. 21 Verizon Communications committed to conduct safety checks of all FiOS installations in New York state that had occurred before Aug. 1, in order to satisfy concerns about possible incorrect electrical grounding. But now, Light Reading is reporting that the telco could ending up forking over millions of dollars in customer credits if repairs to these installations are necessary. Verizon admitted as much in an Aug. 15 filing on the matter with the New York Department of Public Service, the publication reports.

The New York Public Service Commission originally said it had uncovered electrical code violations during routine inspections of past deployments, but the carrier said it knew of no incidents of problems caused by any of the installations.

For more:
- read this story at Light Reading

Related articles:
Verizon's safety checks came to light last week. Verizon report
Verizon's NYC video plan was approved by the NY PSC. Verizon report

Common Cause wants Verizon FiOS installations stopped

Jim O'Neill — Tue, 26 Aug 2008 07:58:17 -0400

Consumer watchdog Common Cause and three other advocacy groups want New York's Public Service Commission to temporarily freeze Verizon's much ballyhooed fiber optic rollout in New York City until safety concerns about the network's installation are resolved.

A week ago Verizon agreed to conduct safety inspections of other FiOS installations in the state completed prior to Aug. 1 after inspectors found a "high proportion" of the systems incorrectly grounded or bonded. Verizon contends its installations are safe and says the new technology naturally will raise issues on installation procedures.

The state OK'd Verizon's franchise deal with New York City last month, saying it was a "sure-fire win for consumers."

Common Cause, meanwhile, contends Verizon is being allowed to continue its installations throughout the state and in New York City, creating additional potential hazards.

"Verizon should not be permitted to benefit from its creation of a safety hazard," Common Cause said in a petition it filed.

"We believe this petition is without merit," Verizon spokesman John Bonomo told the Albany Times-Union. "This has been filed by a group that has stood in the way of progress and opposed our entry into the NYC market every step of the way."

At least one PSC commissioner agrees the installations should have more oversight.

Patricia Acampora, voted against granting Verizon the franchise specifically over the FiOS installation issue. "Verizon should remedy this problem before moving forward. Competition is important to all New Yorkers, but at what price?"

For more:
- Read the Times-Union story

Related articles:
Verizon to check FiOS installs. Verizon report
Verizon is set to go head-to-head with Time Warner Cable in New York City. Verizon report
Verizon saw its NYC video plan approved by the NY PSC last month. Verizon report

Verizon to conduct FiOS safety checks in NY

Dan O'Shea — Thu, 21 Aug 2008 10:53:16 -0400

Verizon Communications will conduct safety inspections of all FiOS installations completed in New York before Aug. 1, after the New York Public Service Commission uncovered electrical code violations during routine inspections of some deployments. The carrier said its installations are safe and that there have been no known incidents of safety hazards, but after the issue was discussed by the NY PSC for two months running, the telco submitted a plan to review all of its installations during the next 60 days.

The PSC has not officially approved that proposal and will seek comment on it at a Sept. 22 meeting, but Verizon is moving ahead anyway. The safety issue is cropping up at a time when Verizon is starting to increase its deployments in New York City, particularly in multi-dwelling unit buildings there.

For more:
- read this story at The Albany Times Union

Related articles:
Verizon is set to go head-to-head with Time Warner Cable in New York City. Verizon report
Verizon saw its NYC video plan approved by the NY PSC last month. Verizon report