Verizon enters cable fray

Sean Mota

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Sep 8, 2003
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By Stephanie Wynalek/Targum Staff Writer
Published: 1/18/06
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The war over your TV just got another player.

Verizon, already a cell phone and Internet DSL provider, is now offering consumers high-definition fiber optic television service as well, to compete with existing cable TV providers like Cablevision and Comcast.

Yet in bringing the new technology to New Jersey, the company is pursuing a controversial state franchising agreement that would allow Verizon, unlike current providers, to bypass the long-standing local franchise negotiations necessary in each municipality.

The most recent bills the company proposed were not passed by the time the legislative term ended last Monday, but since the new term began last Tuesday, two new bills have been reintroduced, in both the Senate and the Assembly.

In the meantime, Verizon is negotiating five local franchise agreements, but it could be stalled 12 to 18 months before any service could begin. The company claims this time delay is one of the main reasons a state franchise is necessary.

The state franchising proposal, in which Verizon is offering to pay higher franchise fees to municipalities, is being met with fierce opposition from the New Jersey Cable Telecommunications Association, a voluntary trade organization that includes rival providers Comcast and Cablevision.

KeepItLocalNJ.com, an activist Web site affiliated with the organization, claims Verizon's plan will neglect public, educational and governmental channels and will only offer service to selective communities, forcing all residents to pay fees regardless.

"Bogus arguments are going out to delay the inevitable competition," Rich Young of Verizon media relations said. "Our competitors are making false accusations to attempt to maintain their monopoly. We will continue to offer communities the same benefits as other companies, and government, public and educational channels will still be provided. Also we will be paying higher franchise fees to the municipalities, and that's money that they may need in the community."

Young said it is not only the technology itself that benefits consumers, but the ability to choose between television providers in their community and find the best option.

"Choice for consumers is coming to New Jersey. The question is will it be sooner or later," Young said. "We have the ability, but we still need the authority, and under that scenario consumers lose because they're forced to wait longer."

Keep It Local NJ insists the idea of "choice and competition" is a guise used by the company to take advantage of communities.

So what is it that makes Verizon's new service stand out?

The most significant development involves Fiber-to-the-Premises Technology, which uses hair-thin fiber optic cables to connect homes and businesses directly to the Verizon network. FiOS TV boasts superior quality visual performance and increased reliability, in addition to increased data speeds and voice and video capabilities.

Residents' television and computers would both be linked under the FTTP network, allowing for subscribers to access new high-speed FiOS Internet as well.

The University won't be affected by the new technology, however.

"What we have is a private video network, which is a service provided by the University to its residents," said Christopher Waters, associate director of video network services. "Our job is to narrow the span of the content so that our service most relates to the lives of the students."
 

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