ViodiTV


Verizon's Once a Century Upgrade

New Local Content Workshops are Forming

New Local Content Workshops Are Forming

“Once a century upgrade,” is how Shawn Strickland, Verizon Communications’ Vice President of Video Solutions characterized Verizon’s FIOS network. Since FIOS is fundamentally a fiber to the home approach, Verizon is essentially replacing their existing copper. He explained that RF remains the lowest cost for distributing broadcast video and that until the economics change; Verizon will continue with a hybrid 870 MHz RF/IP via GPON approach. He also suggested that Verizon would continue to deliver analog channels, even after the broadcast cutover date, implying that they are looking to pick up broadcast only customers.

Even within the Multi-Dwelling Unit marketplace, the need for a pure IPTV isn’t as urgent as one would think (one estimate suggests 25% of Verizon’s footprint serves MDUs)

Stickland said that in many cases they will use an ONT to each apartment (implying they are planning on running Fiber to the Apartment – not just the building). He also suggested there would be instances where they would have coax (these would most likely have to be home-run cables). He did admit there would be a subset where the existing twisted-pair plant would be the transport medium from basement to apartment. He suggested that by the end of 2008 Verizon will have a product to address the twisted-pair challenge.

He also emphasized the importance of creating a managed network within the home. Verizon installs a home network for every customer, using MOCA networking technology as well TR-069-based monitoring from companies like Jungo and Motive. He talked of the Verizon One Internet Appliance, which is a touchscreen device and handset, which allows a customer to control their home network and management media.

They see the Over the Top content providers and social media networks as opportunities, since incumbent cable companies may be more reluctant to embrace new entrants that can be disruptive to the traditional cable model. As such, Verizon has an active program to integrate third-party programs into their platform to make the content easy to use (user interface, password, user name integration, etc.). They also have a program to ensure the operation of federated devices (third-party devices that attach to the network, but that are not supplied by Verizon). Verizon is focusing on an OCAP-based approach for their set-tops.

Strickland summarized their value proposition when he said that Verizon’s objective is, “Simplifying Digital Media,” for their customers. He noted the importance of having a simplified user experience. He also indicated that wherever they have deployed, prices have dropped. According to Strickland, the $90 to $100 triple play is common in areas where they have deployed.

Strickland emphasized several times that the most important asset Verizon has is its 238 thousand employees. He said the move into video is about investing in the people and providing them the tools. Ultimately, the reliability of experience and service availability will become a key long-term differentiator. In addition, Verizon seems to be performing, as, according to Strickland, their FIOS product is receiving 85%+ favorability ratings and 25% of their new customers come from referrals.

Overall, Strickland’s comments reflected the importance of putting together a solid product that is reliable and easy to use in order to pay for,”a once in a century upgrade.”

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.