Verizon Wins Final Regulatory Approval for FiOS TV Rollout in New York City

Telecom News Editorials Reports Glossary

Verizon Wins Final Regulatory Approval for FiOS TV Rollout in New York City

5:55 am on July 18, 2008 | Category: Telecom Services, Television, Regulation

New York’s incumbent telecom operator, Verizon Communications, has cleared the last regulatory hurdle to offer its FiOS TV service in all five boroughs of New York City, with the state’s Public Service Commission approving the company’s local cable franchise.

Verizon already offers its FiOS broadband service in the borough of Staten Island and a number of Manhattan neighborhoods, and has been taking FiOS TV orders in the region for the past several weeks in anticipation of the PSC’s approval.

“Already, interest by the average New Yorker has been staggering,” Verizon said in a press release. “We will have more to say soon about the introduction of FiOS TV service in New York City.”

According to its franchise agreement, Verizon must offer FiOS TV service to all of Staten Island, as well as 62% of Manhattan, 30% of Brooklyn, and 29% of Queens and the Bronx by the end of 2009. The company has until 2014 to offer full pay-TV service throughout all five boroughs.

But Verizon, which has already committed to spending $22.9 billion on its FiOS network between 2004 and 2010, may need to operate the TV service for several years before generating a significant profit in New York City, according to Bernstein Research analyst, Craig Moffett.

“My fear is that Verizon investors may be underestimating the complexity of operating in New York City and therefore overestimating just how quickly a franchise in New York can make a difference,” Moffett explained, noting that the densely populated area’s many skyscrapers and other multiple dwelling units (MDUs) could pose unforeseen challenges.