Verizon's TV Licensing may be only half the Fight

VERIZON'S TV LICENSING MAY BE ONLY HALF THE FIGHT
[SOURCE: Reuters 7/3, AUTHOR: Ritsuko Ando]
Verizon looks increasingly impatient to roll out its Web-based television service nationwide, suing a Maryland county last week for hampering its entry, but getting licenses may only be half the battle. Analysts say that while Verizon's state-of-the-art fiber optic network allows multiple channels of high-definition video and faster downloading, the phone company must show more proof that its multibillion-dollar investment is worthwhile. Verizon will not say how much it is spending on the Internet protocol television service, named FiOS, on which it is banking to win back customers lured away by cable operators' "triple play" of Internet, phone and video bundles. But analysts estimate Verizon is spending around $700 to $1,000 per customer, double the spending of rival phone company AT&T Inc. and spooking shareholders. "The market hates Verizon's level of capital expenditure, although you could say it's a necessary evil," said Kent Custer, an analyst at A.G. Edwards & Sons. Verizon says its investment will pay off as demand grows for high-quality video, speedy downloading of movies and interactive television and gaming -- in short, having more computer-like functions.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2006-07-04T143500Z_01_N03365424_RTRUKOC_0_US-VERIZON.xml&archived=False

* Verizon Sues Maryland County Over Franchise
http://www.broadcastingcable.com/article/CA6348655?display=Breaking+News