Connect with us

Hi, what are you looking for?

New Products

Verizon CEO to Congress: Time for Consumer Choice and Price Competition in Video Market

Seidenberg Says Cable Franchise Process Delays Entry by Insurgents

WASHINGTON – Verizon Chairman and CEO Ivan Seidenberg today urged Congress to reform the age-old cable franchise approval process that effectively delays consumer choice and price competition in the consumer video market by impeding rapid entry by market insurgents.

Seidenberg said Verizon offers its FiOS TV in portions of seven states, but that the federal law requiring a second franchise from thousands of local authorities to offer competing video service over its network- as well as cable operators’ efforts to block the process – are “the biggest limiting factor to how fast we can offer video over our fiber network.”

“Today’s video franchising laws are out of date with technology, out of touch with consumer demands, and serve mainly to delay competition and deny choice for consumers,” Seidenberg told members of the Senate commerce committee.

“Verizon believes a streamlined, national video franchising process – combined with our willingness to ensure that legitimate local concerns are met – presents a win-win-win for localities, consumers and the marketplace.”

Citing price cuts of 28-42 percent by incumbent cable operators since Verizon began offering FiOS TV in Keller, Texas last year, Seidenberg said, “The key to lowering cable costs is competition: Where there is wireline competition, cable prices are more than 15 percent lower” on average.

Advertisement. Scroll to continue reading.

He said a new study by the Phoenix Center found that a lack of competition in the consumer video market costs consumers more than $8 billion per year in extra cable costs.

Seeking to “set the record straight” on issues important to local communities, Seidenberg said Verizon is prepared to pay “the same franchise fees cable pays;” will carry public, educational and government (PEG) channels; supports preserving local governments’ authority over rights-of-way; and expects to be subject to federal redlining rules that apply to cable.

“The time for a national, streamlined franchising process is now because the era of broadband video is here,” he said. “Verizon is eager to deliver it to our customers and to tap the full potential of this great, new technology that will empower consumers, transform communities, and encourage innovation and economic growth across America for years to come.”

Seidenberg said the requirement to negotiate video franchises with thousands of local authorities allows cable to “work the process to derail or delay the entry of a competitor;” permits local authorities to place restrictions and requirements and to mandate unrelated contributions; and results in negotiations that can take well over a year to complete. “Taken together, these three facets of the franchising process delay our entry into the market and deny consumers a choice in video services,” he said.

Click to comment

You must be logged in to post a comment Login

Leave a Reply


New Products

New Products

VIZIO just released their 2020-2021 TV lineup, which includes the company's first-ever OLED 4K TVs in conjunction with 19 LED-backlit 4K LCD TVs in...

Bowers & Wilkins

Bowers & Wilkins introduces Signature 705 ($3,999/pr) stand-mount and Signature 702 ($6,499/pr) floor standing loudspeakers with upgraded components and finishes.

New Products

The $399 UE HYPERBOOM is a Bluetooth wireless speaker that is the biggest, loudest and bassiest from the Ultimate Ears BOOM lineup.

Bang & Olufsen

Top-of-the-line 8K OLED TV for 2020 with folding panels that combines expert craftsmanship with the best in OLED TV technology.

A/V Receivers

2020 Denon 8K A/V receivers are packed with the latest home theater technology. New models include the AVR-X6700H, AVR-X4700H, AVR-X3700H and AVR-X2700H.

New Products

Affordably priced 2.1-channel sound bar system with wireless subwoofer, Chromecast built-in and support for 8K TVs.

You May Also Like


New Share Everything Plans offer data sharing for up to 10 devices with unlimited talk, text, and tethering included Verizon Wireless just announced Share...


FiOS Triple Play offers blazing fast 150 Mbps download, 35 Mbps upload speeds, multi-room DVR, better service and more features at half the price....


Why? Because They Can… Verizon Wireless will charge existing customers a $30 upgrade fee for purchasing new mobile equipment at a discounted price with...


Verizon Wireless announced the new Apple iPhone 4S will be available on Friday, October 14, 2011 starting at $199. Pre-ordering will commence on Friday,...


ecoustics is the unbiased resource for the latest technology news, coolest gadgets, and best consumer electronics. Plus get product reviews, roundups and deals from all over the web on everything electronic. Read more

Copyright © 1999-2020 ecoustics | Disclaimer: ecoustics may earn a commission when you buy through links on our site.