Verizon Counters Cherry-Picking Philly FiOS Charge

Countering claims it has no plan to serve all Philadelphia residents with its FiOS TV service, Verizon Communications Inc. (VZ) said late Wednesday that it will reach all city residents in seven years under a contended 15-year video franchise deal for the city.

Competition for TV viewers in the densely populated metro area could escalate to a heavyweight battle the likes of which would make Rocky Balboa proud.

Philadelphia, the home of Comcast Corp.'s (CMCSA) national headquarters, is said to be trying to block the granting of a Philly FiOS franchise, allegedly claiming its archrival is only targeting affluent areas.

Verizon told the Philadelphia City Council Committee on Public Property and Public Works Wednesday that the company “is ready, willing and able to install its advanced, all-fiber-optic network and bring real TV choice to more than 600,000 households throughout the city.”

Verizon added it plans to offer competitive cable service to all of Philadelphia within seven years of the effective date of a cable franchise being considered by the Council.

The telco TV provider has encountered challenges in recent months in its effort to deploy FiOS in big metro areas, running into questions of grounding problems in its New York efforts.

Verizon plans to bring fiber optics directly to every Philadelphian's home – something it claims no other company has done. The 15-year franchise agreement is designed to serve the needs of more than 600,000 households that will have access to FiOS TV, including households in multiple dwelling units. The principal provisions of the Verizon franchise include:

• Payment of franchise fees equivalent to 5 percent of gross revenue on cable TV service
• Payment to the city of $2 million for a technology and education fund
• Payment of $9.2 million in grants to support the city's public, education and government access channels
• Up to 15 all-digital public, educational and governmental access channels for use by the city or its Public Access Corporation over the life of the agreement
• An extensive and appropriate set of customer service provisions

Stay tuned.

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