Verizon

Verizon Joins CDN Movement

Bernie — Wed, 19 Nov 2008 09:30:19 -0500

Verizon announced they are launching their own content delivery network (CDN) to “distribute content that Verizon contracts for directly with content owners like movie studios, TV networks, video rental sites and entertainment services…” The CDN is being phased in through a business relationship with Velocix, a U.K.-based digital asset-delivery network provider. Velocix will provide CDN services utilizing p2p technology to Verizon. "Verizon is now positioned to offer content owners and video distributors a competitive choice in delivering their services to our broadband customers," said Marjorie Hsu, Verizon vice president for network technology. "With our new delivery capability, content owners will be drawn to our networks, and our customers will be the beneficiaries of a broad range of compelling content services."

Verizon joins an increasingly crowded CDN landscape. CDN’s are growing as broadband and high capacity network owners aim to leverage their core networks for the growing business of content delivery to a plethora of network connected devices. By creating their own CDN capability, Verizon and others eliminate the need of contracting with other transport networks to distribute content, thus hopefully increasing margins. Companies like Verizon may be attractive to content owners, because in addition to robust CDNs, they also offer millions of existing broadband customer relationships. The first example of this Verizon collaboration is Starz Entertainment's Starz Play broadband entertainment service, which “provides unlimited online subscription access to more than 2,500 movies and video selections on demand, in addition to a live stream of the Starz premium pay TV movie channel.” It’s yet another example of broadband service providers trying to leverage core strengths for competitive advantage.

Is Three Screen Convergence a Pipe Dream?

Bernie — Mon, 17 Nov 2008 16:15:58 -0500

The TelcoTV Conference, which concluded last week, had its fair share of three screen convergence discussion. The idea of delivering a converged and integrated video/entertainment experience to the TV, PC, and mobile device is all the rage right now. But I walked away thinking, that at least in the U.S., three screen convergence still remains a dream, except to AT&T and Verizon. Those two seem to be the only companies in the U.S. with a legitimate shot for achieving its promise. They intend on leveraging it as a differentiation strategy over cable and DBS competitors. But where does that leave everyone else? Are all other carriers left on the three screen sideline, while AT&T and Verizon battle soon to be wireless enabled Cox, Comcast, and other cable companies? Forget the digital divide, are we now confronted with the “convergence divide?” Admittedly, TelcoTV’s own panel, “The Realities of Convergence for Small Carriers” created more questions than answers. But that’s not from lack of effort. The panel's outcome is illustrative of the marketplace reality – no clear convergence answers except for all but the largest of carriers. The remaining majority of telcoTV carriers lack the necessary ingredients – scale, a complementary wireless network, and deep enough pockets to pay for the complicated integration. Maybe the bigger question is, does anyone really care? Is this whole concept of content anywhere and on any device important to anyone but the marketers and analysts who promote it?

Let’s assume for a second, that it does “have some legs.” Seems to me, this is ripe territory for partnership. Why can’t Sprint and/or T-Mobile partner with the multitude of wireline IPTV carriers who are not AT&T or Verizon, and jointly develop and market a three screen converged product portfolio? Wouldn’t it make sense for all involved (assuming Sprint is interested, which they may not be, given their existing efforts with the cable industry)? The combined effort would allow Sprint/T-Mobile to more effectively compete with AT&T and Verizon’s three screen push. The same could be said for the existing smaller IPTV providers who will want to differentiate themselves from their video competitors (or maybe keep up with them). There is certainly enough overlap between Sprint/T-Mobile footprints and the IPTV operators who lack a wireless network. Unfortunately, partnering for wireless service has had mixed success. There are a few success stories out there, but most wireline carriers who are anxious to partner with wireless carriers find themselves looking for an elusive dancing partner. The MVNO model hasn’t quite panned out. Perhaps adding video to the mix will make up for the apparent lack of interest in developing wide scale win-win mobile wireless partnerships.

I realize I’m over simplifying the partnership process. The reality is it’s quite complicated and often messy. Adding video to the mix may not even be viable, given the system integration challenges among hundreds of different IPTV provider networks. The business model hasn’t historically been pretty either. There’s a reason why we haven’t seen a great model emerge, where wireline carriers who lack spectrum and a wireless network, partner with an existing wireless carrier to offer wireless services. And do so in a fashion where they can both make a little money at it, while maintaining respective ownership and control of the customer experience (although there are some promising partnerships on the horizon, including Crossroads Wireless). It’s one of those things that make perfect logical sense on paper, but reality proves otherwise. It's not an encouraging picture for three screen convergence evangelists.

Verizon Business Teams With Nortel for Managed Telepresence Service

Bernie — Sun, 16 Nov 2008 18:59:05 -0500

BASKING RIDGE, N.J. - To make it easier for businesses to collaborate over their IP networks by employing advanced video-meeting capabilities in their daily operations, Verizon Business is teaming with Nortel to deliver a new managed telepresence service.

The managed service, which complements Verizon Business' existing video collaboration portfolio, provides complete setup and management of telepresence conferences, including pre-connected and configured video circuits, and the ability for users to make conference reservations online. Read More ...

Telcos Are Reinventing TV

Bernie — Wed, 12 Nov 2008 14:54:02 -0500

The TelcoTV Conference kicked off this morning with keynote addresses from both AT&T and Verizon. Dan York, Executive Vice President of Content for AT&T and John Harrobin, Senior Vice President for Marketing and Digital Media for Verizon both offered glimpses into their respective company’s three screen entertainment strategy. A recurring theme throughout both presentations was that telcos are reinventing the television experience, and doing so more effectively than their cable competitors. “Telcos are at the center of reinventing TV,” said Harrobin. “Telcos are best positioned to mine content assets and maximize value,” through the integration of mobile, broadband and TV, and are executing that vision better than cable, said Harrobin.

“We’re redefining ourselves as a communications and entertainment company,” said York. “But entertainment is more than just video,” he said. York painted a picture where entertainment involves integrating all services and platforms with an entertainment portfolio. “Putting entertainment in the bundle is not enough,” said York. “This goes beyond putting three services on one bill.” The emphasis of telcos beating cable at their own game couldn’t have been louder. I counted five instances of “more than cable” references in York’s 30 minute speech alone. Harrobin alluded to the “death of linear television” and suggested that telcos are better positioned to leverage the future of television which will be more focused on VOD and web integrated video experiences. “The magic happens when we connect the three platforms of mobile, broadband and TV,” he said.

Despite the bravado and hype of York and Harrobin’s comments, there is an argument to be made for their hypothesis. TelcoTV operators are being more innovative with video and are executing a better three screen strategy than their cable and DBS competitors. But realistically, what choice do they have? They have to be more innovative and offer a more compelling mix of features to compete with well entrenched cable and DBS competitors. The same could be said for cable’s assault on telco’s core service – voice. Cable is offering more innovative voice offerings than their entrenched telco competitors. It’s a factor of the marketplace. Competition is always a catalyst for innovation.

BlackBerry Answer to iPhone Launching Nov 24?

Bernie — Wed, 12 Nov 2008 01:37:23 -0500

The iPhone recently dethroned the BlackBerry as the number one selling smartphone in the U.S. RIM hopes to reverse the trend with the introduction of the BlackBerry Storm, which is their keyboardless touch phone answer to the iPhone. The phone will be exclusive to Verizon, which has recently stepped up their “anticipatory” marketing efforts. The wait may not be much longer. BGR is reporting that Verizon will launch the storm on November 24th for $199 (requires a two year subscription), just in time for the holiday season. When will the lines begin to form?

NFL and Verizon Continue Broadband Partnership

Bernie — Thu, 06 Nov 2008 21:54:28 -0500

Verizon and the NFL announced the continuation of their broadband partnership, which brings NFL Network games to Verizon’s broadband customers. Verizon initially offered this service during the NFL pre-season. The games are available online to customers who subscribe to both Verizon broadband service (FiOS or DSL) and Verizon TV service (FiOS or DirecTV). NFL Network Game Extra features include the ability to choose from multiple camera angles, chat features, a game statistics feed, and on demand video highlights. I would imagine that many users of this service will probably watch both – watch the game on TV, while simultaneously interacting with the broadband version to take advantage of the features it provides. Recent research from Nielsen Media reveals that online video viewing often occurs simultaneously with television viewing (check out my Light Reading blog post on this issue). This service seems ideal for that scenario.

NFL Network Game Extra is a great example of a value added differentiated service. It’s exclusive to Verizon customers, creating an element of competitive advantage. One problem though. I’m a Verizon FiOS customer, with both TV and Internet service. I’m the ideal customer for this type of feature, and would value it greatly. Yet I haven’t received any communication from Verizon notifying me of it. The only reason I know about it is because of my role as an industry analyst and blogger. I called two friends who also are huge sports fans and subscribe to Verizon Internet and TV – neither knew about this service, which started today. What good is a value add service if you can’t even communicate its existence to the very customers who would probably value it the most?

Verizon Launches FiOS Enterstayment Promotion

Bernie — Tue, 04 Nov 2008 21:44:19 -0500

NEW YORK - First there was the "staycation" as Americans saved gas money by staying close to home for vacation. Now families are opting for "home enterstayment" - watching movies and shows at home -- rather than an expensive night out. With new promotional offers and more high-definition programming from Verizon FiOS TV, cost-cutting families don't have to sacrifice quality or limit their entertainment choices while saving money by staying home. Read More ...

Verizon-Alltel Merger Provides Roaming Guarantees

Bernie — Tue, 04 Nov 2008 11:56:00 -0500

The “horse trading” effect was strong at the Portals, headquarters of the FCC, today. Today’s historic FCC meeting was delayed by over four hours as dealmaking between commissioners took place before their votes were counted on issues with significant competitive implications. One of those decisions will potentially create the largest wireless service provider in the U.S., as Verizon’s merger with Alltel was approved. Assuming it still makes financial sense, Verizon will surpass AT&T as the biggest wireless kid on the block, with 70 million+ subscribers. Conditions that were placed on the merger include divestiture of additional markets, including the entire states of North and South Dakota and guaranteed roaming requirements.

The roaming requirements are of particular interest because of their impact on the wireless sector competitive environment. Roaming revenue is crucial to the cash flow of smaller rural and regional wireless carriers. These same carriers feared that the market power of a company the size of the new Verizon could simply change the rules on roaming and dictate unfavorable, and perhaps crushing, terms. Those interests pushed for hardline roaming requirements to be attached to any merger approval. What they got was four years. The FCC’s approval of the merger is contingent on the new Verizon guaranteeing that both Verizon’s and Alltel’s current roaming agreements will remain in place for at least four years. The devil is in the details, and the exact terms of these contingencies won’t be fully understood until the final ruling is examined. Some will ask that while four years does provide some stability, what happens in year five?

Verizon Cuts Triple Play Bundle Pricing

Bernie — Mon, 03 Nov 2008 11:38:38 -0500

Verizon is putting some attention on non-FiOS triple play bundles by announcing price reductions for their DirecTV/DSL powered triple play bundles. Continuing decreases in DSL and wireline telephony subscriber counts are certainly helping fuel this latest promotion. These latest bundles offer unlimited local and long-distance calling, broadband via DSL at 1, 3 or 7.1 mbps tiers, and DirecTV satellite service. Prices start at $79.99/month, down from $95/month and go as high as $120/month depending on Internet speeds and video channel selection. For example, $99/month buys you “a triple-play package of Verizon High Speed Internet service at up to 3 Mbps, unlimited local and nationwide long-distance voice service with several calling features and DIRECTV's PLUS HD DVR package with more than 200 digital TV channels and DVR service, plus a free DVR upgrade and SHOWTIME premium movie channels for 12 months,” according to a Verizon company statement. Verizon is also promoting double plays of phone and either DSL or DirecTV starting at $49.99/month.

Verizon: Mobile Web Will Cost You $30/Month

Bernie — Sun, 02 Nov 2008 22:33:30 -0500

Verizon is set to establish a $30/month minimum for mobile web access for all smartphones. The new rates discontinue current pay-as-you-go and 10 MB/month mobile web plans. The move applies to all smartphones, including BlackBerry’s, and hopes to capitalize on their growing popularity. Verizon’s competitors all have similar plans, with Sprint having the most generous. Sprint’s plan includes unlimited mobile web, email, messaging, mobileTV, and GPS. Verizon’s $30 plan only includes unlimited mobile web and email. According to this post’s source, BGR, the new rates take effect Nov. 14th and will be expanded in 2009 to include phones with "web 2.0" capability.

The move is not surprising. Mobile data services are driving revenue growth for the wireless industry and Verizon obviously believes enough demand is present in the marketplace to justify the increase. I guess this means the BlackBerry Storm won’t be available until after Nov 14th, since each sale would just about guarantees a minimum $30/month in data revenue. AT&T practices a similar strategy with the iPhone.