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Verizon to Launch FiOS TV in Region

November 09, 2007

By Elwin Green
Pittsburghpost-gazette.com

After a year of saying that it was coming, Verizon (VZ) announced the launch of its FiOS TV service in the Pittsburgh area -- but not within the city -- yesterday.

The service, which will deliver TV via fiber-optic lines rather than the airwaves or cable, is being rolled out in more than a dozen local suburbs in what the company hopes will be the start of a major expansion.

Verizon touts the service as for its all-digital picture and sound quality, as well as for features such as an interactive media guide that replaces text listings with colorful graphics and "widgets" that allow a user to view weather and traffic information by ZIP Code.

FiOS Premier, the first tier of service beyond standard local television, will offer more than 200 channels for $42.99.

FiOS will be available in 14 suburbs: Bethel Park, Franklin Park, Hampton, Indiana Township, McCandless, Mt. Lebanon, O'Hara, Ohio Township, Peters, Ross, Sewickley, Shaler, Upper St. Clair and West View.

Even as it announced the start of service in those communities, Verizon continued to negotiate for licenses that would allow them entry into other communities. So-called "local franchise agreements" are required by state law in order to regulate customer service standards, rights of way and municipal revenue percentages. Just this week, officials in Nottingham, Washington County, agreed to grant Verizon a franchise for the new service.

Spokesman Lee Giercynzski said that Verizon has deployed fiber-optic lines to 17 of Pittsburgh's 88 neighborhoods for internet access, but that "no timetable has been established" for beginning negotiations with the city for the FiOS TV franchise. But it's coming, he said, because "it wouldn't make business sense" not to go after city residents.

Verizon launched FiOS TV in September 2005 and now serves about 60 markets nationwide. The telecom giant's foray into television delivery puts it head-to-head against cable provider Comcast and satellite TV operators DirecTV and DISH Network. But the real battle is not just for the television screen but for what some call "the three screens" -- television, personal computers and cell phones.

Local Comcast spokesperson Jody Doherty expressed confidence in the company's ability to withstand Verizon's assault. The entrenched market leader has long offered bundled cable, internet, and telephone services, along with a huge library of movies and other on-demand offerings.

"The competition is spending billions of dollars trying to catch up to where we are today," she said.

Mr. Gierczynski said that his company is looking beyond even the bundling of TV, internet and phone, to a "network of the future" that would allow consumers to perform tasks such as setting DVRs using cell phones.

"No matter where you are, no matter what device you have, you'll be able to communicate with your network," he said.

At least one survey indicates that FiOS TV has gotten off to a good start in other markets.

In an August survey of customer satisfaction among television subscribers, conducted by the ChangeWave Alliance, an investment research network that focuses on technology-related companies, fiber optic service and satellite service each had an 85 percent satisfaction rating, and both beat out cable, which had a satisfaction rating of 70 percent.

post-gazette.com