Verizon gains more FiOS Internet, TV traction; delusional on iPhone impact

Verizon gains more FiOS Internet, TV traction; delusional on iPhone impact

Summary: Verizon said Wednesday that it has 1 million FiOS Internet customers and nearly 500,000 FiOS TV viewers.The disclosure was made at the NXTcomm Conference (see Russell Shaw's blog coverage).

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Verizon said Wednesday that it has 1 million FiOS Internet customers and nearly 500,000 FiOS TV viewers.

The disclosure was made at the NXTcomm Conference (see Russell Shaw's blog coverage). FiOS is Verizon's residential fiber-optic service that's encroaching on cable turf.

That Verizon is getting traction--not sure a family video of the 1 millionth subscriber is warranted--with FiOS isn't a surprise since it's a good deal.

On the iPhone front, however, Verizon is sounding a bit delusional.

Marguerite Reardon at NXTcomm quotes Verizon CEO Ivan Seidenberg downplaying the threat of the iPhone, which will be exclusively offered by AT&T.

Not surprisingly, Seidenberg says Verizon is set to compete against AT&T and Apple's iPhone. Duh. What's he going to say? Verizon is toast.

What's delusional about Seidenberg's comments is that he argues Verizon will compete on services like its V Cast music service and V Cast TV. The appeal of the iPhone is that you can sync it with your iTunes and view YouTube video--or shows and movies from iTunes.

If this plays out, Verizon's walled garden approach to TV and music will be rendered moot.

While Verizon may not take a subscriber hit initially AT&T/Apple's more open Web approach will matter over time. As a Verizon Wireless customer I'm already peeved I can't easily download the Opera Mini browser.

The future of mobile browsing is going to look a lot like the experience you get on your PC. Walled garden services aren't going to cut it. Time will tell if Verizon's array of devices and price points will fend off the iPhone. But if Verizon thinks its services are a differentiator against AT&T it's in for a rude awakening.

Topics: iPhone, Hardware, Mobility, Verizon

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11 comments
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  • Services

    Is "services" Verizon code meaning their expensive replacements for the features on your phone that they've disabled?
    tic swayback
    • As a former Verizon phone user...

      ...I have to agree with you there.
      D T Schmitz
    • No Doubt

      My daughter was excited to hear that the Razr synced with her iTunes music. It was a rude awakening for her when she was told not on the Verizon Razr. Pucks
      observer1959
    • Euphemism?

      YES. I was happy to get a Razr until I found that they crippled Bluetooth. This is just indicative of what Verizon and other carriers do in their attempt to control the market and rape the customers to charge for functionality that should be free.
      MacVet
  • AT&T is delusional

    Sorry but most people want a phone that is easy to use and works well and has a low rate plan. Some of the rest (like myself) also want data access so that we can be productive on the road. The iPhone is not designed for either of these demographics and so it will have only a limited appeal. If they subsidise it, they may be able to pull in more younger people who dont have the $$.

    AT&T is betting the farm on this but the impact will be minimal. Of course Apple and AT&T will call it a success no matter what happens.

    I do agree with you that Verizon needs to be more open with what is allowed on the network. There is risk in being more open, but if Verizon would do some validation testing, I'm sure they would find that there are a lot of things they could safely open up.
    otaddy
    • Is 1% delusional?

      Apple is shooting for 1% of the market at these rates in the first year. Seems reasonable to me.
      tic swayback
      • true but ATT counting on much more

        The ATT hype makes it sound like they will win tons of new customers just because of iPhone.

        I agree 1% is not unreasonable. I have no issues with the iPhone, it's ATT that is delusional.
        otaddy
        • Are they?

          The only announced sales goals I've seen is to get to 1% of the market in the first year and a half. After that, expect prices to drop, and expect newer cheaper models to be introduced. Think along the lines of the RAZR, which was overpriced and exclusive for a little while (but still sold well), then it became ubiquitous as prices dropped.
          tic swayback
    • Yeah, my PPC6700 from Alltel is a phone and a pocket-sized computer.

      To me, iPhone's just...a toy... I mean--it's only for web browsing, phone, video/music player, and that's it as far as I know. It's a closed platform.


      My PPC6700 is an open platform, since productivity takes priority over free time. It'd be great for my brother to have an iPhone since he has an iPod but still use Windows like me.
      Grayson Peddie
      • Oxymoron?

        Windows and "open platform" in the same sentence?

        Very funny!
        MacVet
  • VZSpeak 101

    Yep! Just like "Enhanced Services" means its cooler stuff we disabled, found a lame work around and now want to charge you 3x the price it should be. But dont forget the hand-holding interface for "support" rather than use the more robust and STANDARD manufacturer's interface -- not some bloated out BREW app thats clunky at best.
    JT82