Summary
1. Verizon Communications’ expectation is that when it offers FiOS TV in a community, it will get about 25% of the residents – relatively quick. 2. AT&T is talking about “a 15% penetration rate” once “the TV service has been marketed for 18 months.” 3. There is just a vast difference in terms of image in comparing fiber access to IPTV over copper.
Analysis
That “AT&T may finally being making strides with what it hoped it do with the launch of its U-verse TV service” is somewhat of an exaggeration. If a large, prominent company offers a service long enough, it will build up some sales activity over time. However, it is very clear that the MSOs fear FiOS much more than U-verse. And U-verse will hardly be unique in offering “a set of integrated, interactive services.”
There is a palpable level of excitement associated with FiOS as compared to U-verse. The former is viewed more than the latter as an opportunity to upgrade the quality of one’s property. Many building owners are drawn to the marketing assistance programs offered by Verizon because there are financial awards in getting involved in the sales process on top of the ability to better attract future tenants – as well as retain the current ones. The impact of U-verse appears to be far less dramatic. So, it is imperative for the AT&T leadership to remove the corporate obstacles to more fiber to the premises installations.
