Verizon Fiber Optic Rollout to Compete with Cable & Satellite

[Audioholics]

Verizon reported today that it will unveil its fiber optic network to one million homes and businesses by the end of the year. They are spending $1 billion laying the foundation for a fiber optic network in 9 states (starting in Texas) and plan to have a total of 3 million homes and businesses connected by 2005.

The service will begin with the expected voice and high-speed internet connections, including one with a 30 megabit speed rating - thats almost 10 times my RoadRunner connection at its best. These services will be available by year's end, but the real move comes when Verizon completes negotiations with cable networks and franchises and begins competing with cable and satellite providers. With a fiber optic network, Verizon will be poised to offer greater services, such as a wider number of HDTV channels (currently bandwidth-limited in cable and satellite networks). What does this mean to the consumer? We support any progress that involves higher speed and higher bandwidth capability to the user. This will likely help increase adoption of HDTV across America as well as encourage greater HDTV production content for current and new program material.

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[mediafrk]

Great news! The problem is, I don't think it can happen fast enough. If nothing else we can expect this to eventually drive down cable and satellite prices as well as encourage them(cab & sat) to add more HD programming.

 

[Audioholics]

That's exactly what I'm hoping for. We need more competition in the broadband and content delivery market.

More HD channels don't exist (and current ones are shared) partially due to bandwidth restrictions. If a new kid onthe block comes up with a fiber solution, then you can be sure the others are going to have to expand their services (satellites or additional technology) to allow for increased HDTV broadcasts.

In the future when more and more is produced in HD format, it will be a hard sell to broadcast that content in standard definition. Shoudl make for an interesteing next several years.