Monday, June 09, 2008

Unusual competitive situation develops in the Big D: Verizon plans FiOS overbuild in areas served by AT&T U-Verse

Matt Stump at Onetrak reports Verizon is opting to go head to head with AT&T in the IPTV triple play market for about 60,000 customers in suburban Dallas.

The development is being seen by some such as Telecompetitor as possibly the opening salvo of a competitive war between the two big telco TV players in states such as Texas where the telcos have successfully lobbied for state video franchises. It's also likely a contest of IPTV technology with Verizon betting when it comes to delivering HDTV, it can clean AT&T's clock with its fiber to the home (FTTN) full fiber infrastructure compared to AT&T's hybrid fiber and copper cable VDSL-based plant delivering Ma Bell's U-Verse Internet/TV/phone bundle.

What's also interesting about this overbuild is there's also a cable provider in this same Dallas area, Time Warner Cable, that will now find itself competing not just with a single telco in the usual duopolistic market configuration, but with two.

Onetrak concludes Verizon's move could have significant implications for other states such as Florida, California, Indiana, Washington and Oregon where Verizon operates inside AT&T and Qwest territory.

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