Tuesday, October 30, 2007

Verizon's FiOS TV Bulks Up on 3Q Subs

The fact that Verizon Fios TV is growing should not surprise anyone in the cable industry. As cable companies have tapped the hard wire phone market, Verizon recognized the consumers were less reliant on their hard wire and more reliant on wireless. It stays true to the mantra, what you want when you want it, and the mobility of consumers has led to this revelation.

What the cable industry should be most concerned with is how Verizon intends to build better synergies with Fios with their wireless business. Remote programming of their cable box. Remote access to home security, and other applications that connect the mobile user to their home base.

And so the rumor that Comcast and Time Warner may partner together to purchase Sprint makes sense for strategic reasons. But if this purchase does occur as a partnership, can they mutually agree on the direction of their business without co-opting their unique cable business plans.

Verizon will continue to grow subs - some as customers find dissatisfaction from the service problems of their current provider, others because of an upcoming price war. No matter what marketing cable employs, subs will continue to leave the establishment to try the new guy. That's the battle. But to win the war - to keep them or win the cable customer back: unique programming through VOD channels and web to TV programs, better synergy across the triple or quad businesses, and exceptional service.

My advice turn your service people into the Geek Squad. Offer that expertise to the home on 24 hour notice. Spend the time and effort making each customer beholden to your company for setting up and maintaining their working home network universe of cable, phone, wireless, high speed, security, etc. That is true convergence.