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from: Delco Times.com

12/14/2006
Verizon hits the suburbs first

Solomon D. Leach , Of the Times Staff

After Verizon announced Tuesday that it had reached franchise agreements with 100 municipalities in Pennsylvania for its fiber-optic cable-TV, the company defended its approach to offer the service to suburban communities first.
Verizon rolled out its all-digital FiOS TV to 80,000 households in Bucks, Chester, Delaware and Montgomery counties last week with much fan fare. It said it plans to reach 100,000 homes by the end of the year in hopes of challenging cable giant Comcast.

Not included in the initial rollout, however, were urban areas such as Philadelphia, Chester and Upper Darby.

"I think we wanted to really start out first in some of the suburban areas, which is easier from an engineering standpoint," said Verizon Pennsylvania spokesperson Lee Gierczynski.

Gierczynski said the company was trying to navigate difficulties connecting the aerial or underground network to multi-dwelling units like apartment buildings. He also acknowledged that Verizon’s build-out plan includes Philadelphia, although he would not say when the state’s largest city would have the service.

"We’re in very early stages of this deployment," Gierczynski noted. "Just because we’re not in a community today doesn’t mean we won’t be there in the future."

Some groups claim Verizon is intentionally neglecting urban areas with its cable-TV offering.

Keep It Local PA, a coalition of locally elected officials and community organizations, opposes the company with a banner on its Web site that reads "Don’t let Verizon step on your town."

Its literature also accuses Verizon of going after deals with more affluent towns, while pushing "special-interest legislation." The group did not return calls for comment Wednesday.

Jeannine Kenney, senior policy analyst for Consumers Union, the advocacy group that publishes Consumer Reports, said it is too early to tell whether Verizon is ignoring Pennsylvania’s poorer areas.

"Certainly there’s the concern that consumers who need the most relief from skyrocketing cable prices will be the least likely to receive the new competitive video service," she said.

Kenney added that all customers should have a choice for cable service.

Because there is no statewide agreement for companies that wish to offer cable service, companies must negotiate and enter into separate franchise agreements with each municipality they wish to serve. So far, Verizon has supported legislation for a statewide agreement.

In Delaware County, Verizon has franchise agreements with Thornbury, Radnor, Bethel, Aston, Concord, Middletown and Newtown. Except for Aston, the other six municipalities ranked among the top ten in the county with the highest average home sale prices.

Verizon’s fiber-optic Internet, which offers download speeds of up to 30 megabits per second, is available in those seven municipalities, as well as Chadds Ford, Chester Heights, Upper Chichester and Edgmont.

The company said its FiOS TV will become available in parts of Delaware and South Jersey by the end of the year.

According to Verizon, FiOS TV boasts clear picture and sound.Verizon is offering a package of 200 channels, including Comcast SportsNet, for $42.99 per month.

Comcast, which serves all of Delaware County, offers its Digital Plus with Standard Cable package of more than 100 channels for $67.50 per month.