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Verizon set to offer cable TV on fiber network
Del. agency to rule today on plan to roll out service in all unincorporated areas
By AARON NATHANS, The News Journal


A Verizon lineman connects fiber-optic cable to a home in North Bellmore, N.Y., last spring. Verizon offers fiber-optic cable service in New York, Virginia and California. The company nationwide has 118,000 fiber-optic cable television customers.

AP file
Verizon could offer cable television to tens of thousands of Delaware households within weeks if a state panel gives the green light today.

The state Public Service Commission is expected to rule this afternoon on Verizon's application for the right to provide cable television to all of Delaware's unincorporated areas.

If it wins approval, the company will gradually roll out television service to areas that already have fiber-optic cable, starting before the end of the year, said William Allan, president of Verizon Delaware.

Verizon's initial plan includes offering service to about 40 percent of the state over a five-year period. The commission staff has recommended approving the application, with a few minor changes. Under that recommendation, if the company wanted to expand its reach, it would not need the commission's approval.

Delaware would become the eighth state to receive Verizon's fiber-optic cable service, called FiOS, currently offered in places including New York, Virginia and California. Verizon nationwide has 118,000 fiber-optic cable television customers.

Verizon, the nation's largest phone company, is working to challenge cable giant Comcast, the dominant force in Delaware cable.

"We're confident once they see the television services we can provide, we're going to be very successful," Allan said of Delaware residents. Like cable companies, the company could offer its "triple play" package, which includes phone and Internet service.

Verizon announced third-quarter results on Monday, earning $1.92 billion, or 66 cents per share. That's up from $1.87 billion, or 68 cents per share, during the same period last year.

Much of that gain was made up on the wireless side. The loss in per-share value came after the company issued more stock in January to pay for its acquisition of MCI's long-distance services.

Earnings were hurt by higher-than-anticipated costs to acquire cable programming, as well as higher marketing costs for television, company officials said. Verizon's stock fell $1.19, or 3 percent, to close at $37.65 Monday.

The PSC action would clear the way for Verizon over the next five years to serve the unincorporated areas of Angola, Dover, Hockessin, Holly Oak, Middletown, Newark, Talleyville, Penn Rose and Wrangle Hill. Some areas, such as Dover, still need to have the right wiring installed. The proposed service area includes about 100,000 households.

The Public Service Commission governs telecommunications in unincorporated areas. Verizon already has received permission to deliver cable television to five incorporated areas of the state: Odessa, Townsend, Delaware City, Bellefonte and Newark. Verizon has not built its network for television in Wilmington.

Comcast and others have criticized Verizon's plan as serving mainly wealthier parts of the state. Verizon has rebutted that claim, adding that it plans to expand its reach, but needs time to undertake a costly construction program to serve those homes.

"We believe they should be required to serve the whole area, and have a specific timetable," said John Lamontagne, spokesman for Comcast.

Staffers for the commission wrote in a report filed last week that Verizon should file reports proving that it is providing service to areas without regard to economic class. Also, it should provide a five-year plan for expanding its video service no less than four years after it begins its service, the staffers wrote.

"Hopefully, the citizens of Delaware will benefit," said Arthur Padmore, the state's public advocate.

He added that he would like to make sure the state holds Verizon to the same standard as Comcast. "I certainly would like to see prices come down, if there is competition between these two giants."

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