Cable Needs to Sound The Alarm

On the surface Verizon making the claim that they are going to expand in to the rural markets with their market leading FiOS is no big deal. But it is.

For years the satellite and cable guys have had the run of the tier 2 markets to deliver television and now broadband data services as well as recently digital telephone service, or as we call it here, VOIP.

Now with FiOS the nations number two telco behind AT&T, with an already proven platform that works very well are saying in my mind "cable, we're done lying down and taking it from you."

This is the warning shot across the bow, meaning its time the cable operators in the Tier Two markets started to realize that the gravy days are about to end as Verizon moves like an army when they get going. This also means downward pressure on Level3 in some areas. With the growth of cable penetration Level3 has had its growth go along for the ride. Now with Verizon expanding footprint you can bet that means their network is going to those places too and will eventually start to cut into Level3's piece of the pie in the wholesale markets, even if today, Level3 carries some of the traffic for Verizon.

Cable guys...I think you've been warned.

Comments

[atmasphere]

I'd like to believe I don't live in a Tier2 Market in Westchester NY ... Fios is still not available where I live on any level - data or TV. Cablevision is still rocking 30 / 5 connections here though