Post by Skaggs on Feb 22, 2009 8:02:59 GMT -5
Will Verizon spur cable TV rate war?
FiOS fiber-optic system raises interest as Time Warner offers rate deal
By LARRY RULISON, Times Union Business writer, first published: Saturday, February 21, 2009
ALBANY — Verizon Communications Inc. won't say when it plans to start offering cable television service in the Capital Region, and the company likes it that way.
After all, if Verizon were to announce when and where it planned to start offering TV over its new fiber-optic system known as FiOS, then Time Warner Cable, the dominant local cable company, might figure out its strategy to try to foil it.
Before raising its TV rates roughly five percent this month, Time Warner offered to lock in the old prices if customers agreed to a two-year contract.
Like Time Warner and other cable TV companies, Verizon has to get franchise agreements with each town, city or village where it broadcasts TV. It already offers phone and Internet service locally over the FiOS network, which has been laid down in places like Bethlehem, Guilderland and Colonie. But none of the towns have FiOS TV service yet.
"We typically do not announce markets we anticipate entering," said Verizon spokesman John Bonomo. "However, we are continually expanding our FiOS availability, our customers love the service, and we have secured almost 150 TV franchises from towns and villages in the state."
The competition is so fierce that Bonomo declined to answer if Verizon will ever bring its TV service here. The closest place where it is offered right now is in Poughkeespie, but it was also brought to Buffalo, so other upstate cities are expected to follow.
Despite that, it appears that Time Warner's Albany division, which serves 400,000 customers, may be anticipating the arrival of FiOS TV within the next year or two.
Locking in its customers for two years could possibly keep those customers from switching to Verizon.
Those customers become especially critical because with Verizon's entry into the TV market, both companies are now offering TV, Internet and phone services, often bundled together at a discount.
Still, local Time Warner officials won't say if the "price lock guarantee" program is a response to Verizon's future plans.
"In an environment where we compete amongst a variety of options available to consumers for video entertainment, voice and internet services, we continually look to provide the best value of product and service," said Peter Taubkin, vice president of government relations and public affairs for Time Warner's Albany division.
It's unclear if the entry of FiOS TV into the local market would also force prices to drop. Verizon is offering a bundle of TV, Internet and phone in Poughkeepsie for $99.99 a month, Bonomo said. Time Warner's triple bundle costs $139.95, but customer service representatives were offering it Friday for $119.95 a month for customers that agree to a two-year commitment.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
FiOS fiber-optic system raises interest as Time Warner offers rate deal
By LARRY RULISON, Times Union Business writer, first published: Saturday, February 21, 2009
ALBANY — Verizon Communications Inc. won't say when it plans to start offering cable television service in the Capital Region, and the company likes it that way.
After all, if Verizon were to announce when and where it planned to start offering TV over its new fiber-optic system known as FiOS, then Time Warner Cable, the dominant local cable company, might figure out its strategy to try to foil it.
Before raising its TV rates roughly five percent this month, Time Warner offered to lock in the old prices if customers agreed to a two-year contract.
Like Time Warner and other cable TV companies, Verizon has to get franchise agreements with each town, city or village where it broadcasts TV. It already offers phone and Internet service locally over the FiOS network, which has been laid down in places like Bethlehem, Guilderland and Colonie. But none of the towns have FiOS TV service yet.
"We typically do not announce markets we anticipate entering," said Verizon spokesman John Bonomo. "However, we are continually expanding our FiOS availability, our customers love the service, and we have secured almost 150 TV franchises from towns and villages in the state."
The competition is so fierce that Bonomo declined to answer if Verizon will ever bring its TV service here. The closest place where it is offered right now is in Poughkeespie, but it was also brought to Buffalo, so other upstate cities are expected to follow.
Despite that, it appears that Time Warner's Albany division, which serves 400,000 customers, may be anticipating the arrival of FiOS TV within the next year or two.
Locking in its customers for two years could possibly keep those customers from switching to Verizon.
Those customers become especially critical because with Verizon's entry into the TV market, both companies are now offering TV, Internet and phone services, often bundled together at a discount.
Still, local Time Warner officials won't say if the "price lock guarantee" program is a response to Verizon's future plans.
"In an environment where we compete amongst a variety of options available to consumers for video entertainment, voice and internet services, we continually look to provide the best value of product and service," said Peter Taubkin, vice president of government relations and public affairs for Time Warner's Albany division.
It's unclear if the entry of FiOS TV into the local market would also force prices to drop. Verizon is offering a bundle of TV, Internet and phone in Poughkeepsie for $99.99 a month, Bonomo said. Time Warner's triple bundle costs $139.95, but customer service representatives were offering it Friday for $119.95 a month for customers that agree to a two-year commitment.
Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.
