Verizon Challenges Cable With Fiber TV

Verizon on Monday touted its FiOS television service as "a compelling alternative" to cable TV. However, the company has a major roadblock ahead: laws. Currently, to offer any kind of video across its fiber networks, the law stipulates that Verizon would have to obtain a second franchise from local authorities.

The requirement could prove critical in Verizon's rollout of its proposed television service, which would be the first major threat to cable operators since satellite TV. Using its ultra-fast fiber optic lines, Verizon can deliver advanced phone, Internet and television services to residential customers in a single package.

Ivan Seidenberg, chairman and CEO of Verizon, says that his company should not need a second license, as FiOS TV is only an extension of its current telephone franchise. However, several authorities have said that Verizon's new service is akin to cable television, and the company needs a new franchise and thus local approval.

Because FiOS would stream TV channels on demand, it paves the way for a virtually limitless number of programming opportunities. Seidenberg called on broadcasters to support Verizon's cause at the NAB 2005 show in Las Vegas.

"We ask you to lend your persuasive voice in support of clearing away this barrier to video competition and speeding the day when America's communications companies can use our fantastic resources to offer your content and provide a true and compelling alternative to cable," Seidenberg said.

He added that Verizon would work with broadcasters to protect their intellectual copyrights. Whether this meant that users' capabilities to record and save programming on the service would be limited was not mentioned.

Verizon's FiOS initiative promises to bring fiber optic lines to 3 million households by the end of 2005. The Internet component offers 30 megabit per second downloads and 5 megabit per second uploads; however, the television service will operate at a speed of 100 Mbps.