Advent of Verizon cable signals heightened battle for customers
Another battle's brewing in Lexington, and this one is made for the 21st century.
Local officials welcome Verizon's move, saying it will benefit residents.
''We're very much interested in the competition. I think service will increase," said Jack Dempsey, chairman of the Andover Cable Advisory Committee.
In the near term, Verizon's entry means customers in some communities will have another choice in their phone, Internet, and television services. Already, households can obtain more than one of these services from a provider by ''bundling" them. But Verizon and its competitors also are setting the stage for the future, where ''convergence" enables a provider to not only provide all the telecommunications services required by most people, but to make them work together as well.
''It's not about just providing cable TV service. It's really transforming our network into a state-of-the-art facility that will be able to provide services that are yet to be developed. This network has the potential to change the way people live, work and play. It has capacity unavailable through any medium today," said Rick Colon, Verizon's regional director for external affairs.
Though no one is predicting rampant price-cutting, industry observers believe that as the battle for phone, Internet, and TV customers heats up, telecommunication companies will increasingly feel the pressure to deliver more services at lower costs.
''Price points will continue to fall," researchers with
Verizon is upgrading its network in patches.
The first Bay State communities to get the upgrade will be Andover, Bedford, Belmont, Boxford, Burlington, Holliston, Hopkinton, Lexington, Lincoln, Lynnfield, Natick, Newton, North Reading, Reading, Sherborn, Topsfield, West Newbury, Winchester, and Woburn. The company also is upgrading its network in the New Hampshire towns of Bedford, Epping, Salem, and Portsmouth.
Verizon's upgrade employs the company's new fiber-to-the-premises (FTTP) technology. Once in place, the company says, the new lines will offer residents improved or faster voice and Internet services.
The upgrades will make the communities capable of receiving Verizon TV service, though that will take longer. Verizon, like all cable TV providers, must seek approval from local boards in each community -- a process that takes at least six months. Verizon has contacted local officials in all the towns where it wants to deliver cable, Colon said.
''What we've heard from communities is that they welcome competition in their towns," he said. ''They look at this as a benefit for the town itself as well as the residents. Competition tends to breed lower prices and better quality of service and new product offerings as well."
Don't bank on bargain-basement prices, though. Local cable advisory boards cannot negotiate prices or channel selections.
Those interested in cable will have to wait for details on prices; Colon said Verizon is still working on prices and its channel selections. However, Colon did say that Verizon, like other providers, will offer better deals to those who sign up for multiple services -- a practice called bundling.
Executives at Verizon's main competitors, Comcast and RCN, also see a convergence of their services -- phone, data, and video -- and say they are well positioned for the future.
''We're in a good position. We give good customer service, but we're small and more agile. We have the ability to move quickly," said Linda Duggan, RCN's general manager for New England.
RCN, which emerged from Chapter 11 bankruptcy protection two months ago, has offered telephone, Internet, and cable TV services in Massachusetts since 1997.
''We created the triple play. Customers like it and customers stay," Duggan said, dismissing the potential threat from Verizon. ''With Verizon coming in, they're validating our model."
RCN won't disclose the number of customers it has in Massachusetts, but Duggan said most customers sign up for more than one service from the company. The average, she said, is 2.5 services per customer.
Duggan said RCN will continue to rely on its customer service -- company officials stressed that all calls are handled by in-house staff who can answer questions about voice, Internet and cable services -- to sell its products.
RCN's reach, though, is considerably smaller than its current cable TV competitor, Comcast. RCN offers dial-up service throughout the state, but offers its so-called triple-play services in only about 20 towns and cities.
RCN and Comcast already go head-to-head in 18 Bay State communities, including Arlington, Burlington, Lexington, Stoneham, and Woburn.
''Competition has been good," said Daniel Dunn, chairman of the Burlington Cable Advisory Committee. ''People who have RCN are very happy when they have all three services -- cable, Internet, and phone services. And they've been very competitive with our friends at Comcast. Comcast has more than felt their presence."
Burlington will be among a select few that will have a choice of three providers with Verizon now getting into the picture, and Dunn said he sees that as a welcome move. ''Burlington is getting the advantage," he said.
But residents in Burlington, as well as those throughout the state, could see more than competition as Verizon moves in. Even as these telecommunication companies promote the convenience of getting all services billed together, the bigger news is what's coming next.
''The way we see convergence moving, it's not about a phone, computer or television set," said Jennifer L. Khoury, a Comcast spokeswoman. Khoury sees a day when people watching TV will have caller ID pop up on the screen every time the phone rings. And if they decide to answer the phone, they can pause the TV show -- or maybe turn on the digital recorder -- while they take the call that's delivered with VoIP technology.
''That is absolutely something our network will be able to deliver," Khoury said. ''And that's where we see convergence. The network is there, the technology is there; it's a matter of bringing the products to the market."
