Advertising agency Digital Art Services filed a lawsuit against Verizon Communications alleging that the telco overstated the number of subscribers it had for its FiOS TV service. The suit claims that Verizon counted pending customers along with actual subscribers in a quote it provided to a sales agent that sold advertising to DAS. Verizon says it doesn't pad it subscriber figures.
Verizon claims DAS is suing simply because it wants out of its advertising contract. Whether there was any overstatement or not, this lawsuit represents one of the new potential challenges telcos face in entering the TV and media business. Though accuracy of voice connection numbers always mattered, they were never so directly connected to advertising revenue.