Verizon Plans to Put the IP in IPTV

Reinforcing the power of IP, Verizon Communications Inc. is planning to move to an all-IP network for the delivery of its FiOS triple-play bundle – TV, VoIP and Internet access – in roughly two years.

The telco currently uses a fiber-to-the-home architecture to deliver VoIP and Internet access, but uses a radio frequency (RF) overlay to deliver broadcast video to consumer homes, an approach that Verizon said it is quite pleased with.

“I expect to take broadcast video to IPTV in 18 to 24 months and by three to four year maximum,” said Mark Wegleitner, Verizon’s senior vice-president of technology and CTO. “IPTV is definitely the end game. Video-on-demand and gaming are already coming over an IP data channel.”

The cost-conscious executive said Verizon decided to use the RF technology for delivering linear video because it was proven and less expensive than then-emerging technologies, adding that some members of his technical team would prefer to stay with RF for the long-term.

By contrast, all three services that make up AT&T’s U-verse bundle, including video, are delivered over an IP infrastructure, over fiber and then DSL links to residences. The telco has committed to adding substantial fiber to its triple-play diet, announcing June 15 plans to use GPON gear from Ericsson and Alcatel-Lucent for new U-verse builds.

Analysts have praised Verizon’s approach for delivering FiOS services, saying that in a fast-evolving content environment, it offers greater flexibility and carries lower risk than approaches implemented by other telcos.

Wegleitner updated Verizon’s FiOS progress, claiming to have 348,000 customers, representing an 11 percent penetration. “Nearly 60 percent of FiOS TV customer take [FiOS] Internet,” he said.

Verizon announced that FiOS is now available in more than 3 million households in 11 states, including Rhode Island, where the telco launched the package Monday.

Verizon Communications Inc. www.verizon.com

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