New York City Serenade: Cable Operators Dig In vs. Verizon
Time Warner Cable, Cablevision Systems State Their Cases vs. Verizon Communications’ FiOS TV in Franchise Talks
By Robert Marich -- Broadcasting & Cable, 4/16/2008 5:14:00 PM
Multichannel-TV providers were mum on their competitive consumer pricing plans Wednesday, days after New York City solicited proposals for nonexclusive cable-TV franchises that quickly brought forward Verizon Communications. Making a formal application April 15, Verizon intends to offer video services via its FiOS TV service to New York, signaling that it will be an overbuilder trying to nab customers from two cable-TV incumbents.
Time Warner Cable has 1.4 million existing subscribers in New York (out of 13.3 million nationwide) and Cablevision Systems wires the Bronx and part of Brooklyn with 679,000 subscribers (out of 1.3 million total Cablevision video subscribers). New York is Cablevision’s largest franchise. Broadband overbuilder RCN also serves part of the city with video, broadband and phone service.
The City of New York formally requested video-service-franchise proposals April 11 that it said will be awarded on a nonexclusive basis. Time Warner’s and Cablevision’s existing 10-year franchises will expire in September, and renewals are not automatic. Given interest from multiple service providers, there’s speculation that the city will be demanding in mandating that franchise holders provide local enhancements, such as channels dedicated for education and government access.
Verizon, the telco for the New York region, said it already laid fiber optics in parts of New York, so physical plant to offer video services is already in place in some locations. It promised to offer FiOS TV to every New York resident within six years, or by mid-2014. It also offered to pay 5% of gross revenue on cable-TV service, matching the franchise-fee obligations of cable-TV operators.
A Verizon spokesman declined to elaborate on pricing except to note that its triple play of video, voice and broadband is priced at $94.99 per month in surrounding suburbs. FiOS TV notched 1 million subscribers nationwide at the start of the year.
Time Warner has franchises for Manhattan, Staten Island, Queens and part of Brooklyn, and a spokesman said it looks forward to getting franchise renewals.
In a statement, Cablevision said it “has a 20-year record of delivering the best cable-television service to our customers in the Bronx and Brooklyn over a state-of-the-art fiber-optic network and with a strong and enduring commitment to the communities we serve … The phone company [Verizon] has been privately negotiating with the city for more than one year and has yet to make the details of its franchise proposal public, so at this point, it would be inappropriate to comment further."
New York City Department of Information Technology and Telecommunications commissioner Paul J. Cosgrave said in a statement, “It is our firm belief that -- as in any business -- direct competition between cable providers will result in greater choice, lower prices and enhanced customer service for cable-television subscribers. We look forward to receiving and reviewing these new proposals.”
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Would the FCC ever permit pay channels to distribute their programming via broadcast DTV subchannels by way of special set-top boxes equipped with subscription code cards?
If so, could broadcast DTV become an alternate distribution channel for pay programming that doesn't like the deal it's getting from cable?
Perhaps this question has been answered somewhere and I missed it, but I'd sure like to know... this would be kind of a DTV terrestrial version of SMATV.
Curious in TV Land - 4/19/2008 2:55:00 AM EDT -
When I need a 6 to 9 pm appointment Time Warner is their for me. Verizon has a problem keeping appointment and taking care of service. Verizon has told me $95.00 a year for all three packages but when i got me bill "Holy COW' i was hit with all these TAXES! One day I had a problem with my FIOS..I needed an evening call..Verizon said they don't work from 6to9 pm.. I had a problem with the internet and i got someone from INDIA..i could not understand he was saying..I was upset with the service. Running a FIBER to my door,installing a Power pack to energize the FIBER and install a battery pack...total of 7 hours to install FIOS..I was tired of the Bull and called Time Warner..I had explained the problems and they came on a Sunday and I said YES please come over!! Technicains came too my home and within 2 hours i was back on Time warners system..Hello NY1 and the Free on Demand stuff. Sam the Cable Tech from Time Warner was really a understanding person. while Sam was connecting back to Time Warner, i was installing my Modem..very easy. I will not go back to Verizon...it's bad that they out source their calls to other countries to solve a computer issues..Keep American Jobs in the U.S. Thank you Time Warner and Sam for Helping me..
Natalia - 4/18/2008 12:06:00 PM EDT -
It is about time TWC and Cablevision have a little bit of competition. Finally, It sounds like the consumer will come first. The customer service provided by these 2 monopolies is unacceptable. Anyone who has had TWC knows they nickel and dime you for everything and don''t care if you have a complaint. Maybe with Verizon Fios, these companies will restructure their customer service and meet the expectations of the consumer.
John Smith - 4/17/2008 9:58:00 AM EDT
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