Saturday, December 03, 2011

Verizon enters cooperative deal to cross-sell with major conventional cable providers

Cecilia Kang is reporting in the Washington Post Saturday morning on a cooperative deal  between Verizon Wireless and conventional cable services Comcast, Bright House and Time Warner, in various cities, to cross-sell each other’s services, in a manner that recalls the insurance market. The story is here

The companies will cooperate to offer package deals that offer Verizon for the wireless portion of their telecommunications. Some feel that this could cause Verizon to put less emphasis on its land-based optical FIOS, which some consumers feel is superior to conventional cable in reliability.  Others feel that cellular wireless, as opposed to cable broadband, should be developed further because it doesn’t depend on a physical infrastructure vulnerable to storms or perhaps sabotage (which would make cellular wireless a preferable link in future home security systems  -- Ackerman Securityt is already mentioning wireless monitoring in its television broadcast ads).   In the workplace, I have personally found cellular wireless to be reliable and effective.  

Kang said that some hope that the deal will mean that cable companies will not keep charging for unused extra channels.  

Some have questioned the possibility of anti-trust issues. 

I recall that in New York City, during the Verizon strike, people had trouble scheduling work or going to the major competitor, Time Warner, which news reports said could not keep up.

The New York Times has a story ("Media Decoder") about the deal by Brian Stelter, which characterizes the deal as acquisition of more wireless "spectrum" by Verizon.  

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