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And another $17 billion to fiber the whole country

Competition is heating up for Verizon as its massive team of fiber optic technicians hurry to network together states stretching from California to New York. Verizon is competing with companies like Cablevision, Time Warner Cable and others to not only gain market share but also to keep it from losing more customers.

Verizon is currently on a massive project to replace its aging copper lines with new highly durable and ultra-fast fiber lines. Verizon hopes to connect roughly 16 million homes and apartments across the US, with an estimated 3.1 million homes in New York City alone. The cost of such a mammoth project is huge. Verizon says it expects to spend roughly $20 billion by 2010 to complete the new network. With it, Verizon will be able to offer better phone, video, Internet and other IP services.

Companies such as Comcast and Vonage are striking hard in the phone business, taking a chunk of customers away from Verizon virtually on a daily basis. Comcast is also involved in cable TV and other businesses that Verizon is not. However, with the new optical network in place, Verizon is rolling out a new type of TV service called FiOS TV.

With FiOS TV, a digital signal is sent through a fiber optic network rather than traditional copper cable. The optic network provides massive bandwidth and allows Verizon to scale up video quality as the time comes. More HDTV channels, multi-channel audio and better quality are all part of Verizon's game plan.

Verizon is also introducing a dual-tuner DVR with its FiOS TV home service. The DVR allows customers to watch programs from anywhere in the house using streaming video. The DVR will act as a central video hub, streaming video and audio to other client hubs throughout the house. FiOS customers are required to pay $3.95/month per client box and $19.95/month for the DVR hub. DailyTech previously reported that TiVo is also readying its dual-tuner CableCARD DVR. TiVo stated that its Series3 tuners are already in the hands of several major cable networks for testing.

Verizon is also planning to roll out FiOS Internet services on a national scale. Currently, Verizon's FiOS services are available in a limited number of select areas. With newer residential and business developments, Verizon is going in early, hoping to persuade builders to allow it to install fiber lines to each unit. Certain builders however, have prohibited Verizon from installing fiber lines despite their obvious advantages. Verizon also has to compete with AT&T and the family of Bell companies.

As the race for wiring up the nation in fiber heats up, Verizon along with its competitors are hoping that the big short term investments will bring in long term rewards.

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Hell Yeah
By Gigahertz19 on 8/15/2006 2:32:32 PM , Rating: 2
With all the money Verizon makes from cell phone plans they should have more then enough money to do something like this. I just got the Verizon family shareplan 2 months ago and we paid $150 to buy the cell phones, the first month bill was $232 because of activation fees and other crap and after the first month our bill will be around $90 or so and I got the cheapest family shareplan.

Everybody I know has Verizon as their cell phone service. I know they make a killing.

Can't wait until I get their fios internet availability in State College, PA. Tons of other cities in PA has it except State College don't know why, State College is the home of Penn State Unversity Park Campis which is the main campus and they don't have fios availability....better hurry their ass up. I want fiber speeds torrents will fly on that sucker. Dorm speeds are pretty crazy though, last year when I was living in the dorms and not an apartment I would upload at 10 mega bytes a second....I could upload 1 gig in under 2 mins.

RE: Hell Yeah
By brshoemak on 8/15/2006 5:15:33 PM , Rating: 2
Can't wait until I get their fios internet availability in State College, PA. Tons of other cities in PA has it except State College don't know why

I'm in State College, PA also and I can tell you why (at least one version). Verizon has fiber all over the place in State College, PA ; I know because our company works with it on a nearly daily basis as we manage the internet for a variety of locations. Having fiber runs is not an issue.

Verizon has been I..N..C..R..E..D..I..B..L..Y slow to roll out FIOS because of how lucrative T1's are for the variety of businesses and educational buildings around here. You can spend $750+ a month on a full 1.5Mbps T1 or get 15Mbps download and 5Mbps upload for $49.99 a month with FIOS.

It's partly a matter of economics.

RE: Hell Yeah
By Lord 666 on 8/15/2006 9:32:22 PM , Rating: 3
That's assuming domestic businesses are only using for applications that allow latency (60ms+) for web surfing, email, and file sharing.

When domesitc businesses need realtime data services such as voice or video (sub 60ms)using end-to-end QoS, point-to-point T1s or MPLS is the way to go.

However, I would feel more comfortable using FIOS for DMVPN backup than horrible DSL, even if it costs 10x as much.

RE: Hell Yeah
By brshoemak on 8/16/2006 10:53:32 AM , Rating: 3
When domesitc businesses need realtime data services such as voice or video (sub 60ms)using end-to-end QoS, point-to-point T1s or MPLS is the way to go.

well that kind of goes without saying, but quite a few businesses believe (or are sold) T1's or fractional T1's because they believe T1's are what real businesses use without a REAL need for one. A site I work at has a fractional T1 only delivering 512K and they pay out the wazoo for it.

There will always be businesses with needs for T1's, direct ethernet handoffs, QoS etc. but for businesses that only require access to the web and perhaps a small network of remote computers, FIOS is a godsend from a pricing standpoint. From Verizon's standpoint, however, it cannibalizes their more profitable network group. If I was Verizon I would be slow in rolling it out also. (relies on the premise that I am a douche)

[which I'm not] ;)

RE: Hell Yeah
By abochman on 8/16/2006 8:03:06 AM , Rating: 3
Verizon Wireless and Verizion are actually 2 different companies, what VZ wireless gets from their cell phone profits they use to fatten up the wallets of board members, i mean, er, make their service "more reliable".

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