A very interesting competitive development is taking place in the Dallas, TX suburbs. is apparently preparing to overbuild territory with service. This is a first, at least that I’m aware of, where large incumbent “baby bells” enter each other’s territory with competing landline services. Apparently, the rules have changed, and dramatically so. Verizon appears to be taking advantage of statewide video franchising rules (as Texas provides), and acting as a cable overbuilder, as opposed to a traditional telecom CLEC. The development was reported in this . I guess the gloves are slowly coming off.

This strategy does go counter to conventional wisdom. Verizon is entering the market as the third triple play provider, competing with well established brands (not to mention the DBS competition). Most business consultants would advise against such a move. What does Verizon have up their sleeve? Do they feel that strongly about FiOS and its competitive advantage/differentiation? Perhaps. It will be an interesting test case to observe. If Verizon has some success with this overbuild strategy, will we see it in more territories where Verizon is geographically positioned against AT&T and ? Verizon’s purchase of GTE several years ago gives them multiple territories in multiple states that are closely aligned with incumbent AT&T and Qwest territories. Qwest would seem to be more vulnerable, since they have . Of course, if Verizon aggressively moves on an overbuild strategy, AT&T certainly won’t sit back and wait – they may decide to strike first. I recognize this is just speculation, seeing as the first household in AT&T territory has yet to be lit with FiOS. But this is definitely a development to keep a close eye on. We may be witnessing the first salvo of an historic competitive battle.

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9 thoughts on “Verizon Overbuilding AT&T U-verse with FiOS

  1. FIOS VS U-VERSE

    What I have is a direct relationship with both companies. I have worked for both in FIOS AND U-VERSE Departments. I also have an BSIT degree and a good understanding for computer networks. I am also a guy that loves TV and ESPN, Sci-Fi, History CH, Smithsonian to name a few. I guess that’s mostly what I watch but my opinion about the two services is based on what I know and what I have experienced over the last few years. Getting right to the point, FTTP is always better than FTTN, PERIOD. Why would I limit my data availability if I had the choice? Two, future advancements is not limited to the condition of OLD COPPER. U-verse is limited to four TV streams, MAX TWO HI DEF; I currently have four HI DEF TV’S. (TWO KIDS, MASTER AND LIVING AREA). I could not get hi-definition to all TV’s on deferent channels with U-VERSE. The prices of TV’S are coming down and they will continue in the future. That said, IPTV is great if not for the limitations of the copper network that AT&T uses. NOISE, ADSL CROSSTALK, BAD WIRE, PACKET LOSS, ERRORS ONLY BECAUSE OF THE COPPER WILL ALWAYS BE PRESENT IN U-VERSE Unless they replace the cable. How costly would that be? Copper, man power and the upcoming strike…WOW. I would like to know what everyone out here thinks and do they see it like I do. Also, the benefit of fiber to the prem removes the bandwidth issues and will provide a platform for advancements in the future. 4, 6, 8 Hi Def TV’s 15, 20 30Mgs-DS, 5-30Mgs-US and with no loss in TV quality and or any limit in video streams. Oh yes, FIOS is not full IPTV, but if they decide to do so they can with no issues and or problems but the code used to do it. As a past employee of both (I would choose FIOS without a second thought. That’s just my opinion.

    1. You are right man I live in NYC and I have FIOS (FTTP). I had Time Warner before and TWC in NYC is not bad at all but when I changed to FIOS WOW!! The picture quality is unbelievable, prior to FIOS I had no idea what a deference FTTP makes!

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