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Kent Gibbons

Don’t Weep for Verizon

December 15, 2006

I think it’s safe to say now that Verizon is serious about being a multichannel-video provider.

I could be late to this conclusion. Maybe because I started at this magazine writing about TeleTV and Americast and other grand telco video invasions that sputtered. If the names don’t sound familiar, well, there you go.

But Verizon has gone out and signed franchise agreements with, by its own last count, 248 municipalities in nine states. Indiana, Texas, California and New Jersey have conceptually approved statewide video franchises. Last week, Verizon announced plans to take on Comcast and others head-to-head in the Philadelphia market and in Delaware. Sharon Cohen-Hagar, a Verizon corporate communicator, said that some weeks it seems like new franchises are being announced daily.

USA Today, in reporting Dec. 1 on plans by Federal Communications Commission chairman Kevin Martin to streamline video-franchising rules, put Verizon’s franchise figure at about 300. And he deemed that slow progress for two years’ work.

My reaction: That’s impressively fast work, with momentum building.

I won’t dispute the story’s point that some communities try to extort new video entrants. Who can blame them? How often do they get the chance for new perks like fiber networks or even a swimming pool on a multibillion-dollar company’s tab?

Local citizens will applaud such efforts, up to a point. But eventually, voters will press elected officials to lower demands and bring in competition.

Verizon had an ugly go of it in Montgomery County, Md., but now has reached a settlement there.

Cablevision has done all it could, via local lobbying, to see that Verizon didn’t get speedy franchise approvals in New York markets. Verizon went to the FCC to complain that Cablevision was also refusing to provide its Rainbow regional sports channels to Verizon’s FiOS TV service. The outcome? Verizon is getting local franchise deals and even cut a deal to get those Rainbow sports channels, as it has secured sports nets affiliated with multichannel-TV rivals Comcast and Time Warner.

All of that spells progress.

The USA Today piece referred to the “cozy duopoly” of local cable providers and nationwide satellite-TV purveyors DirecTV and Dish Network. (Should that be “triopoly?”)

That’s fine. But if price competition is the determining factor of competitive success, Verizon probably isn’t the answer. FiOS TV has loaded up on programming, at high market rates, and Verizon wants the same high-spending, multiservice, long-lasting customers the cable guys want.

Getting back to those 236 franchises, here’s a point of comparison.

One-time regional provider Ameritech (now part of AT&T) was one of the telcos that worked hard to get video franchises in the 1990s. Its strategy was flawed: It was overbuilding its own phone network with hybrid fiber and coaxial cable, instead of building an integrated network. SBC bought Ameritech and sold the cable systems for a song.

The next buyer, WideOpenWest, had no problem selling cable-modem service competing with SBC’s digital-subscriber-line product, and sold the systems a year ago for $800 million-plus, a huge profit.

How many franchises did Ameritech rack up, over about three years, to lay the foundation for that $800 million asset?

About 110.

I’m a big believer in competitive wireline providers. Living in New York City, in an apartment building that bans satellite dishes, I was able to get digital cable, from RCN, months before Time Warner’s system rebuild reached my neighborhood. Recently, I switched to getting video, phone and data from Time Warner.

I didn’t switch to save money. I had some problems with RCN, but basically, I wanted some of the programming Time Warner had that RCN didn’t.

If private capital is willing to make the investment, then everyone in the country should benefit from such wireline competition, whether it’s between cable provider and “overbuilder” or cable and telco. Bring in wireless players, too.

But from my observation, the hurdle of thousands of local franchise authorities (rapidly diminishing by statewide legislation) isn’t slowing the process.

Verizon, playing under current rules and getting the rules changed fairly on a state-by-state basis, is getting the government approvals it needs to build out its network and then market it against cable and satellite.

The marketing hurdle is what’ll really be the test of being in the multichannel-video game for keeps.

Posted by Kent Gibbons on December 15, 2006 | Comments (20)

October 22, 2009

In response to: Don’t Weep for Verizon
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May 6, 2009

In response to: Don’t Weep for Verizon
dranoerronse commented:

May 5, 2009

In response to: Don’t Weep for Verizon
TEEBOUMAMALEMY commented:

April 29, 2009

In response to: Don’t Weep for Verizon
TiffwalatrerBlobbig commented:

April 28, 2009

In response to: Don’t Weep for Verizon
buibreleevem commented:

April 28, 2009

In response to: Don’t Weep for Verizon
tolfi commented:

April 26, 2009

In response to: Don’t Weep for Verizon
Spoonspoesermaestib commented:

April 26, 2009

In response to: Don’t Weep for Verizon
sophiemarcaues commented:

Hello my name is Sophie, I'm really new to all this, just got my computer and Internet. I want to start my own blog but I just don't know how to go about building my own web site, can anyone please recommend what would be a good start? like....do I have to learn programming to build my own web site? Or at least point me in the right direction or where exactly I should look for help? Thanks, and sorry for the off topic post! I just didn't know where else to ask...

April 25, 2009

In response to: Don’t Weep for Verizon
Metaentaisp commented:

February 23, 2009

In response to: Don’t Weep for Verizon
alexhardgamerr commented:

February 20, 2009

In response to: Don’t Weep for Verizon
johnronni commented:

HI all,
where i find drivers for Minolta CF2002?
this is wery important for me, please hlp
If I wrote is not in the correct section, please move to the appropriate section.
sorry my bad english, i use translator

January 12, 2009

In response to: Don’t Weep for Verizon
AddideDaype commented:

Íå ñïîðþ, íåäóðíàÿ ñòàòüÿ

January 8, 2009

In response to: Don’t Weep for Verizon
injeltelany commented:

Ñ áîëüøåãî, õîçÿèí ñàéòà âåñåëî îïóáëèêîâàë.

December 15, 2008

In response to: Don’t Weep for Verizon
brieviata commented:

Ïèñàêà +1

November 6, 2008

In response to: Don’t Weep for Verizon
acouncams commented:

Èíòåðåñíûé ïîñò, ñïàñèáî. Òàêæå âòîðè÷åí ëè÷íî äëÿ ìåíÿ âîïðîñ “áóäåò ëè ïðîäîëæåíèå?”

September 18, 2008

In response to: Don’t Weep for Verizon
Annoupspems commented:

Cute young queer gets teamed and creamed.

September 16, 2008

In response to: Don’t Weep for Verizon
ÃžÃ¢Ã¥ÃÃ²Ã³Ã±-Ã´Ã Ã commented:

Äà óæ... Òóò êàê ëþäè ðàíüøå ãîâîðèëè: Àãðèïïèíå çàñâåðáèëî â ñïèíå :)

January 14, 2008

In response to: Don’t Weep for Verizon
Bikeman commented:

Ivan why do you have so many awards for employee benefits when Verizon paid out over 100,000,000 in employee settlements
for gender bias violations

November 6, 2007

In response to: Don’t Weep for Verizon
Clickhost commented:

Ñåðâåðíûå ðåøåíèÿ

Âàøåìó ïðîåêòó óæå íå õâàòàåò ðåñóðñîâ îáû÷íîãî âèðòóàëüíîãî õîñòèíãà èëè æå Âàì ïðîñòî íóæíî íàñòðîèòü ñåðâåð "ïîä ñåáÿ"?

Äëÿ ðåøåíèÿ äàííûõ ïðîáëåì Âàì ïðîñòî íåîáõîäèì
Dedicated(Âûäåëåííûé ñåðâåð).Íà äàííûõ ñåðâåðàõ Âû ìîæåòå ðàçìåùàòü íåîãðàíè÷åííîå êîëè÷åñòâî
ñàéòîâ, óñòàíàâëèâàòü ñâîå ÏÎ, çàïóñêàòü ñâîè ïðîöåññû è ìíîãî äðóãîå.

Âûäåëåííûé ñåðâåð(Dedicated)

AMDOpteron
Ïðîöåññîð: AMD Opteron 144
Îïåðàòèâíàÿ ïàìÿòü: 1024 Ìá DDRAM
Æåñòêèé äèñê(-è): 2x 160 Ãá SATA
Òðàôèê: Íåîãðàíè÷åííûé
Ïîðò: 100 Ìáèò/ñåê
IP-Àäðåñà: 2
Öåíà:
Óñòàíîâêà: 100$
Åæåìåñÿ÷íî: 75$
èëè
Óñòàíîâêà: 0$
Åæåìåñÿ÷íî: 95$

Pentium3,0
Ïðîöåññîð: Intel Pentium 4 3,0 Ããö
Îïåðàòèâíàÿ ïàìÿòü: 1024 Ìá DDRAM
Æåñòêèé äèñê(-è): 2x 160 Ãá SATA
Òðàôèê: Íåîãðàíè÷åííûé
Ïîðò: 100 Ìáèò/ñåê
IP-Àäðåñà: 2
Öåíà:
Óñòàíîâêà: 100$
Åæåìåñÿ÷íî: 80$
èëè
Óñòàíîâêà: 0$
Åæåìåñÿ÷íî: 100$

Core2Duo1,8
Ïðîöåññîð: Intel Core 2 Duo 1,80 Ããö
Îïåðàòèâíàÿ ïàìÿòü: 2048 Ìá DDRAM
Æåñòêèé äèñê(-è): 2x 320 Ãá SATA
Òðàôèê: Íåîãðàíè÷åííûé
Ïîðò: 100 Ìáèò/ñåê
IP-Àäðåñà: 2
Öåíà:
Óñòàíîâêà: 130$
Åæåìåñÿ÷íî: 105$
èëè
Óñòàíîâêà: 0$
Åæåìåñÿ÷íî: 125$

Core2Duo2,0
Ïðîöåññîð: Intel Core 2 Duo 2,0 Ããö
Îïåðàòèâíàÿ ïàìÿòü: 3072 Ìá DDRAM
Æåñòêèé äèñê(-è): 2x 500 Ãá SATA
Òðàôèê: Íåîãðàíè÷åííûé
Ïîðò: 100 Ìáèò/ñåê
IP-Àäðåñà: 2
Öåíà:
Óñòàíîâêà: 130$
Åæåìåñÿ÷íî: 145$
èëè
Óñòàíîâêà: 0$
Åæåìåñÿ÷íî: 165$

Core2Quad2,4
Ïðîöåññîð: Intel Core 2 Quad 2,4 Ããö
Îïåðàòèâíàÿ ïàìÿòü: 4096 Ìá DDRAM
Æåñòêèé äèñê(-è): 2x 500 Ãá SATA
Òðàôèê: Íåîãðàíè÷åííûé
Ïîðò: 100 Ìáèò/ñåê
IP-Àäðåñà: 2
Öåíà:
Óñòàíîâêà: 240$
Åæåìåñÿ÷íî: 270$
èëè
Óñòàíîâêà: 0$
Åæåìåñÿ÷íî: 300$

Âèðòóàëüíûé âûäåëåííûé ñåðâåð(VPS)

Ìû ïðåäëàãàåì ñâîèì êëèåíòàì îáíîâëåííóþ êîíôèãóðàöèþ âèðòóàëüíîãî ñåðâåðà íà áàçå îïåðàöèîííîé ñèñòåìû Windows Server 2003.

VPS-Standart

March 21, 2007

In response to: Don’t Weep for Verizon
Chance commented:

Beware Verizon’s So-Called “Soft Credit Check” - we recently opened an account for my brother and Verizon told us they would need to run a “soft” credit check because he has never had service with them before. Verizon assured us that this credit check would only show up on the credit reports under the section that is only seen by the individual whose credit is checked - and would NOT be seen by any potential creditors. THIS IS A LIE! We just ran my brother’s credit report and the Verizon credit check shows up on the main section under Inquiries. I have been told that having numerous inquiries is detrimental to one’s credit. We requested that Verizon contact the credit bureau that THEY reported the inquiry to and instruct the credit bureau to place the inquiry in the correct place on the report. This request was refused by the rep and by the supervisor (Sanje Brothers, I.D. # 638429 of Missouri Call Center) and we were basically told that it was our problem and that we would have to go through the long process with the credit bureau to request that it be changed. This process can take between 30 - 90 days. They would not even bother to pick up the phone, send a fax, send an email, or send an update through their credit reporting system to help. I’d call this very poor customer service, but it isn’t even customer service at all. I told him such and he said if I wanted customer service to do anything about it I would need to use the credit bureau’s customer service. That is what I will do. I will also investigate competitive companies and will switch my business away from Verizon as they have just lost my loyalty.

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