Skip to main content

Telco TV Bet Still Raises Concerns

From Long Island, N.Y., to the outskirts of Dallas, phone-service giant Verizon Communications is making deeper inroads into the TV market. In the span of a half-hour on Sept. 26, Verizon won approval from officials to offer TV services in Massapequa Park, N.Y., and Fairfax County, Va.

That came days after it began providing more than 300 channels to residents of Keller, Tex., a community of about 34,220 near Dallas, and it follows an announcement that Verizon inked a deal with Disney to carry ABC, Disney, and ESPN channels over its service.

The introduction of FiOS, the fiber-optic cables that deliver TV service to homes, marks the early stages of a sea change in telecommunications: Companies that traditionally specialized in phone, wireless, and Internet services are now rushing to deliver TV and video.

New York-based Verizon and peers including SBC Communications are locked in a land grab with cable-TV operators such as Comcast and Cablevision, which have long competed for high-speed Internet customers and are now carving out a widening share of the market for phone service. Telecom providers are trying to fend off phone-line losses and step up sales growth by providing the same package of services a customer can get from a cable carrier.

The telcos better pick up the pace. By the end of 2007, 12 percent of residential consumers will be buying phone service from cable outfits, vs. 4 percent now, according to tech consultancy Convergence Consulting Group. Over the same period, phone companies will have signed up only 2 percent of TV-service subscribers, CCG predicts.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...