Verizon FiOS Strategy Going Forward

Verizon will look to other cities to replicate the "FiOS build-out" model the communications giant is implementing in Boston.

Make no mistake - this strategy is primarily based on Verizon increasing their 5G footprint and secondarily on increasing their broadband penetration. Verizon is just using the video services FiOS offers as the "shiny thing" to get public officials attention. And to get favorable pole attachment concessions.

Verizon Fios to Stream NFL Network

Interesting development - Verizon Fios has signed an agreement that allows them to stream both the NFL Network and NFL RedZone channels.

My initial thought upon reading the news was that this is just another sign of a growing digital divide in this country. Verizon Fios has pretty much frozen where they will be deployed and the same can be said of most of the major cable operators. So this announcement is just a reminder to most of rural America that there are services out there that they don't have access to because they don't fall into the right "footprint."

Even the people who live in areas with independent FTTH operators probably would not have access to services like the TV Anywhere NFL Network from Verizon Fios because the authentication process today is just so expensive.

I guess people could still use the new Slingbox units that can stream to smart phones and tablets but that's not just the same.

Bad Connections

The New York Times recently had an interesting op-ed piece by David Cay Johnson about the dangers of an ATT and Verizon duopoly.

I would make a few comments about the article:

1. Part of the reason a triple-play bill is so high in the US is due to very high content costs. That's a much bigger component that Internet data or voice services. That should be noted.
2. It is true that both Verizon Fios and ATT U-Verse won't be doing much expansion in the coming years and it is also true that copper based POTS (plain old telephone service) could be endangered in rural or less populated areas. It should be noted that this could actually be a blessing in disguise. Municipalities, smaller more nimble telephone companies and electrical cooperative could easily step in and start providing the FTTH services that Verizon and ATT will walk away from. These opportunities could be the real growth areas in the coming years - much more than what Verizon or ATT will accomplish.

Worth saying.

Could Turnaround Be Fair Play and Smart Play for AT and T and Verizon?

Interesting report that AT and T and Verizon may be looking to add cloud based gaming capabilities.

Most people have been talking about more and more video services being ported to game consoles like X-Box, Wii and PS3 enabling cord cutters and potentially cutting into MSO revenue streams. What if the MSO's turned around and eliminated the need for game consoles by porting the games to the MSO's cloud. Gaming on demand instead of video on demand.

Here's another thought - what if this is the strategy Apple is looking at for their new Apple TV? They could upgrade the box so that it is both a replacement for existing MSO set top boxes and also a replacement for the customer's game console. A STB with Kinect-like functionality? There would be a huge market for Apple game console.

The thing holding most MSO's back from offering new features and functionality is the huge sunk investment in existing MPEG2 based STB's. Imagine if the customer - on their own - replaced those old boxes with new Apple TV boxes! Wouldn't that be most welcome by the major MSO's like AT and T and Verizon?

Verizon and Comcast Deal

There seems to be two pieces of business common sense that are somehow mystifying to some people. First most business people would rather not do a deal than enter into a deal where they know they will lose money. Second - once a home has a high speed connection there is very little incentive for a competitor to pour the money into the infrastructure to put in a competitive connection. Its not brain surgery but some people just can't seem to get their arms around these two simple ideas. And as I explain below - these two simple ideas are the crux of the proposed Verizon Wireless and Comcast deal.