Summary
1. There is a large amount of skepticism by industry analysts that Verizon’s FiOS can pull away subscribers from the MSOs because of unique programming and content. 2. However, Verizon hopes to offer some pretty high-quality services as a result of them being delivered over fiber. 3. On-line gaming is one example.
Analysis
Verizon believes that direct connections to live sports and possibly even betting will be lucrative ideas in the future..
If one is betting online, fiber offers greater security for such transactions. Of course, these services are not going to be delivered overnight. Of course Verizon would have to pass the test of the regulators and perhaps even local or state governments before being allowed into such a venture. Yet, these options remain on the table.
In 2006, we wrote that “Verizon will be looking to provide content that will further strain the existing infrastructures of the cable companies.” That is an important reason why the RBOC is aggressively planning ahead for services that will require higher bandwidth. So, ultimately, Verizon is eager to provide these types of services partially in order to demonstrate a large quality difference so that it can potentially take away more customers from the MSOs.
