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Cable Companies Use Competitive Pricing to Fight IPTV Roll-Outs

7:30 am on July 5, 2006 | Category: Business, Internet, Telecom Services, Television

As telecom carriers like AT&T and Verizon introduce IPTV video offerings in cities throughout the United States, cable companies are shrewdly fight back with lower pricing and better deals.

San Antonio, Texas is a perfect example of this phenomena. AT&T has recently launched its U-Serve IPTV offering in the city prompting leading cable incumbent, Time Warner, to reduce the cost of its television, internet, and phone services, and offer special bonuses like free premium channels and faster broadband connections to loyal customers.

“The cable guys are not going to sit around and wait,” commented Stanford Bernstein telecom analyst, Jeffrey Halpern. “They offer television, broadband and phone now, so if the Bells don’t have television, they can’t fight back.”

As video franchising regulation eases and telephone providers build their position in the pay-TV market, incumbent cable operators are sure to continue fighting back. IPTV platforms are sure to offering some interesting new features, but cable companies still hold the high ground with a strong history of experience on their side.

Ultimately, however, free market competition will be the deciding factor in this battle for video supremacy. Customers will flock to whichever providers can give them the greatest range of features for the lowest cost. So far, cable carriers are holding their own, but it is still too early to tell which side will come out on top.

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