& cplSiteName &

At Age 2, Verizon FiOS Evolves

Raymond McConville
TelcoTV News Analysis
Raymond McConville
9/24/2007
50%
50%

Now two years old, Verizon Communications Inc. (NYSE: VZ)'s FiOS TV still looks an awful lot like cable. Run up and down the FiOS TV channel guide, and the programming isn't stunningly different. But Terry Denson, Verizon's vice president of FiOS TV content strategy and acquisition, says the carrier's mission isn't to have exclusive content, but a better network.

Table 1: Verizon FiOS at a Glance

Product Verizon FiOS Internet Verizon FiOS TV
Public Debut August 2004 September 2005
Subscribers 1,100,000 515,000
What's the Big Deal? Provides downstream speeds of up to 30 Mbit/s, with 50 Mbit/s available in some areas. Verizon is currently testing 100-Mbit/s speeds, too. As "the only carrier to offer uncompressed HD," Verizon says its FTTH network allows for a simply better picture. Interactive features will only enhance the quality, but the company doesn't plan to compete by securing exclusive content.
Source: Verizon, Light Reading




"From a marketing perspective, the company will continue to place the emphasis on the network," says Denson, formerly a VP of programming for Insight Communications Co. Inc. , the nation's ninth-largest cable company. That approach will be interesting to watch as Verizon moves toward providing a more interactive TV experience.

The company has announced that it will move FiOS to an all-IPTV platform within three years. (See Verizon: HD VOD Is Coming.) That will open the door to a lot more possibilities, but they just won't be as obvious on the surface to the consumer.

The move to IPTV
"The difference between cable-like TV and IPTV is not a consumer difference," says Heavy Reading senior analyst Adi Kishore. While Kishore points out that IPTV has the potential to bring more interactive features and more on-demand content to customers, a carrier, he feels, is more likely to go with IPTV because of the "economies of bandwidth."

Cable companies and services like Verizon's FiOS send broadcast video to customers, but IPTV, in contrast, runs on a request-and-send architecture. The provider does not have to send 50 Mbit/s of bandwidth to a customer's home if his computer and TVs are off. The old cable architecture, however, is constantly feeding the home whether the consumer is there to use it or not.

So IPTV makes carriers more nimble to offer a greater variety of on-demand content and more high-definition (HD) content. In traditional cable, to add on-demand services, incremental bandwidth must be added to the network. That's not the case with IPTV.

Mad for ads
So what will really change when Verizon moves FiOS to IPTV?

One thing will be the way Verizon delivers advertising. [Ed. note: Oh. Well. Yay.] (See Targeted Ads, 2; Speeds & Feeds, 0.) IPTV allows Verizon to know what its customers are watching. That's scary, to be sure. But it does mean that there will be no excuse for not having the most compelling content on offer -- since, after all, they "know" you.

"IPTV identifies what is that one piece of content that would compel someone to switch or stay," says Denson, optimistically. "If both cable and us have the World Cup, well then that's not going to be it. It could be Indian cricket or education. The scarcity of some content is an opportunity for us. Take the Food Network for example. [Ed. note: Please!] Everyone knows it, but not many people watch it. But for some, it’s a key selling point.

"It's going to be about cobbling customers together, one at a time, and finding their key points of acquisition, whether it be content, HD, or VOD," he adds. "If they don't care about interactive applications, then you're not going to get them with interactive applications."

IPTV technology will allow Verizon to watch its customers' viewing habits and react. But it doesn't necessarily mean that Verizon will become a purveyor of exclusive content or a content owner itself. "We've found that having the exclusive right to specific content is very costly and very rarely worth it," Denson says.

So while others cite exclusive content as a key competitive advantage, Verizon says that, while FiOS TV is changing, the service won't be drastically different from cable. Verizon's stance is that the change will be gradual, with a greater emphasis on interactive features as time goes on.

Table 2: Why IPTV? Some Possible Features You Might Find on FiOS (Someday)
Feature Benefit
Targeted advertising with hyperlinks direct to the advertiser's Website Consumers can buy on impulse. Retailers can know what consumers their ads are reaching.
Hosted interactive games No need to buy a console. Also, integrated billing means you don't need to fish for your credit card when buying new games.
Since bandwidth is less of an issue, more streams could change how sporting events are broadcast Consumers can see multiple camera angles during a game and get instant statistics on players and teams.
Your content is accessible from any IP network Watch DVR programs from your home recorder while you're on a business trip.
Your set-top has its own IP address Program your DVR from any computer or Web-enabled cellphone.
Source: Speculation


So when it becomes a fully IP-based service, don't expect that FiOS TV will boast exclusive shows on its network, or a blockbuster movie before its theatrical release.

Verizon is betting, instead, on its ability to offer a better picture by not compressing its high-def video feeds. It will use interactive features to provide more relevant content choices and advertising to consumers. That, the carrier says, is enough to give it a fighting chance against cable.

The challenge for cable is to decide what weapon it will use (pricing? content? quality?) to fend off FiOS as it eats into its territories. "Cable can do all the things that IPTV can, it's just much harder and more complicated," says Heavy Reading's Kishore.

— Raymond McConville, Reporter, Light Reading


Interested in learning more on this topic? Then come to The Future of Broadband 2007, a conference devoted to broadband's evolution as an enabler of next-generation consumer services and applications. To be staged in Atlanta, October 23, admission is free for attendees meeting our prequalification criteria. For more information, or to register, click here.


(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
bollocks187
50%
50%
bollocks187,
User Rank: Light Beer
12/5/2012 | 3:02:07 PM
re: At Age 2, Verizon FiOS Evolves
The technocrats at Verizon have NO IDEA how to build future networks.

They pushed for a VoATM and analogue overlay Triple play solution and stung a number of vendors on cost with an overdesigned ONU and OLT model.

They now want to move to an IP Triple Play model after spending years in denial about this trend.

Please someone get in there and fix theese laggard morons. What a bunch of @#$%^&* losers.


Raymond McConville
50%
50%
Raymond McConville,
User Rank: Light Beer
12/5/2012 | 3:02:02 PM
re: At Age 2, Verizon FiOS Evolves
at least they've acknowledge it and are doing it. Better late than never. Sometimes in telecom it's better to be late then early. AT&T was early with the IP model, and it hasn't gone smoothly
Mark Sebastyn
50%
50%
Mark Sebastyn,
User Rank: Light Beer
12/5/2012 | 3:01:43 PM
re: At Age 2, Verizon FiOS Evolves
Raymond:

Such a move by Verizon would have a collateral impact on the hardware they buy and deploy. I've spoken with several folks who indicate that Fios is not moving to all IP- and that this is yet another example of the IPTV moniker being slapped onto something that is more broadcast in nature.

Will Verizon still broadcast channel content? What happens to the upstream encoders? What happens at the CPE?

A move to all IP makes a lot of sense now that FiOS is off the ground but information from other sources is conflicting.
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (1) comment


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Google Security Lessons for IT
Curtis Franklin, Security Editor, 1/18/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.