Cablevision to Verizon – Bring It On


Verizon is building its FIOS/fiber service as fast as it can, but not fast enough since it faces a newly energized and increasingly aggressive Cablevision, the incumbent cable operator in many parts of New York. The company is adding about 1000 customers for its VoIP service every day, with many switching entirely from Verizon. “Cablevision could be a real headache for Verizon,” CreditSights analyst Jake Newman said in a note to clients. “The second quarter should be even stronger because Cablevision now has the systems in place to allow existing customers to transfer their numbers to Cablevision’s voice platform.” (via Reuters) There are some demographic truths that work against Verizon. Satellite penetration is much lower in the VZ footprint, giving cable operators a leg-up as they try and lure phone company customers with higher bandwidth rates, lower prices and a true triple play package. Its triple play package of $90 a month has been a hit, and nearly 400,000 have signed up for its VoIP service. Other bells have not been pressured as much.

Comments are closed.