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Verizon wins first NY video franchise

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Verizon has apparently won the latest skirmish with Cablevision in New York, although the war is probably not over.

The New York PSC voted Wednesday to permit Verizon to obtain a video franchise in the Village of Massapequa Park, the first town in that state that will get TV service over the new fiber-to-the-premises network. The approval of the 10-year franchise agreement is conditional, and requires Verizon to establish consumer protections, customer service standards, rules for public and government access and line extension standards.

Verizon said it will roll out its 300+ channel FiOS TV lineup in Massapequa Park in the first quarter of 2006, and plans to use this franchise as a template for future New York video operations. Verizon has already sought video franchises in Nyack and South Nyack, N.Y.

Cablevision fought long and hard to prevent the franchise award, including conducting public advertising and flier distribution campaigns and filed a law suit saying Massapequa Park officials illegally deliberated in private before issuing the Verizon franchise in September. The lawsuit is still pending. Verizon officials are hoping the PSC’s ruling will pave the way for further expansion on Long Island, where Cablevision has been highly successful adding voice services to its video and high-speed data offerings.

“Today's decision not only keeps open the door to choice and competition for the residents of Massapequa Park, it's also an important victory for cable consumers in other New York communities who want a choice for their video services,” said Thomas McCarroll, Verizon vice president for regulatory affairs in New York and Connecticut, in a prepared statement. “By establishing a framework, this order should help expedite confirmations of future franchises. The commissioners recognize and support the consumer benefits of real and fair cable-TV competition. They also understand that Verizon's all-fiber infrastructure will enhance economic development and the quality of life in our state by stimulating innovation and choice. We will need to read the commission's written order relating to this confirmation, but we look forward to offering more New York consumers the benefits and innovation of FiOS TV.”

A Cablevision spokesman said his company is still studying the New York PSC ruling.

Based on the PSC press statement, it appears the phone company's attempt to get a special deal in Massapequa Park has failed and the PSC, in its conditional approval, has endorsed fair competition on a level playing field," he said.

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