Verizon is one step closer to being able to sell its cable TV service in New York City, which will finally give Time Warner Cable (TWC) and Cablevision (CVC) some competition. But don’t bother firing your cable company yet: Verizon’s service won’t be rolled out across the whole city until mid-2014.
Verizon (VZ) filed for a NYC cable franchise licence yesterday, Crain’s reports. The city has already started wiring many NYC buildings with its “FiOS” fibre optic network, but it can’t sell TV service until it is approved by the city and New York State Public Service Commission. Crain’s:
Under Verizon’s TV proposal, within six years the company will offer TV over its fibre-optic network, dubbed FiOS TV, to customers in all five boroughs—about 3.1 million households. In addition, Verizon has agreed to pay cable franchise fees to the city equal to 5% of gross revenue from its TV service—the same offered by its competitors—and will consent to customer service provisions.
Next up: The city will review Verizon’s proposal and hold a public hearing. We’ve attended a few of these types of hearings before — they’re rather lively. Expect stall tactics from cable competitors and a handful of activists demanding more, faster, better, etc. from Verizon.
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