Verizon takes a bite out of New York's MDU market

Verizon's Fiber to the Premises (FTTP) deployment strategy is well documented, and its bet is giving it some decent returns. As of the end of the third quarter 2009, Verizon Communications had 2.5 million TV and 3.1 million Internet subscribers, respectively. To date, the FiOS FTTP network passes 14.5 million premises, with a goal of reaching 15 million homes passed by next year. 

Part of Verizon's ongoing FTTP drive includes a focus on targeting Multi Dwelling Units (MDUs) in its New York City market. Given the challenges of penetrating MDUs with FTTP--only a portion of which are truly technical--Verizon's MDU drive has been centered on beating out New York's hometown cable MSO Cablevision. 

Other than saying it will leverage new indoor Optical Network Terminals (ONTs) in other markets including Southern California and Florida, Verizon has placed the majority of its FTTP MDU emphasis in its New York market. Sam Greenholtz, a co-founder of Telecom Pragmatics and former Verizon staffer, believes Verizon is using New York as a testing ground for other MDU market deployments. 

"Verizon is going at it pretty hard in New York City, but if you come down to D.C. or you go to Baltimore or Philadelphia or Boston, Verizon is not doing anything with MDUs," he said. "If they are, it's very minimal by going into the soft areas which are the two story MDUs where it's easy to get to everybody, but they are not attacking the high rise buildings. They're not going to do it until they get through New York and have some feel of what it's really going to take."