Advertiser Sues Verizon over FiOS Customer Count

Verizon Communications International Inc. today confirmed it is being sued by an advertising company client that claims the service provider has inflated the customer count of its FiOS TV offering.

Digital Art Services Inc. contends in a suit filed in the U.S. District Court for the Southern District of New York that the telco’s customer count for the video service was lower than it reported, resulting in higher expenses for the advertising company.

Verizon disputes Digital Art Services allegations in a prepared statement. “We are honest and straightforward with potential advertisers about the FiOS TV audience and the advantages of advertising on FiOS TV,” said a spokesperson for the telco. “Our numbers are rock solid, audited internally before being released and not in any way to be called into question.

“This particular matter is a garden-variety business dispute with a company that wants to get out of a contract with Verizon,” said the spokesperson. Digital Art Services, based in Great River, N.Y., did not reply to calls for comment on the suit.

In a press release issued two weeks ago, on the two-year anniversary of its launch, Verizon claimed as of June 30, 2007, Verizon FiOS TV had 515,000 subscribers and was available to more than 3.9 million households in nearly 500 communities in 12 states. The company claimed it will update FiOS TV statistics when it reports third-quarter earnings on Oct. 29.

Digital Art Services Inc. www.digitalartservices.com
Verizon Communications International Inc. www.verizon.com

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