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Verizon FIOS will have set-top delivery of ALL Internet videos

Russell Shaw has an interesting post about Verizon planning to offer all video content to their customer's set-top boxes in just 12-18 months using the fiber network. If you recall, I analyzed Verizon's race to build out their fiber network, which I read about in a NYTimes article.

Teaser of Russell's post:

In a private note to several of his colleagues (including your truly) Dave Burstein of DSL Prime reports this morning he has found out that Verizon is about 12 to 18 months away from executing a plan to open the set-top box to all Internet video. This woud be done by means of Verizon FIOS, their broadband video service.

And by all Internet video, not just the video content provided by Verizon content partners, but all of it.

Hmmm. While Russell suggests that Internet video will be available, he doesn't give specifics how this would work. Will the set-top box feature a built-in web browser? Will it require a keyboard and mouse to navigate Internet video content on your TV and wouldn't this be a redux of the failed Microsoft WebTV (now MSN TV)? Or is Verizon planning instead to use a 4-way keypad on your typical TV set-top box remote control for content navigation? Plus using numbers 0-9 pressed multiple times to enter letters A-Z, which is a pain.

I would think that Verizon would have to partner with YouTube, Google Video, and other major video content players if they want to make it easy to navigate their Internet content simply using a 4-way keypad. They'd have to "skin" the web content in order to make it easily viewable and easily navigated from a remote control with no keyboard or mouse support.

Or perhaps, we will see a redux of the WebTV and similar devices, where future set-top boxes will have full keyboard/mouse support to enable Internet access for accessing online video content, as well as checking email, chatting/IMing, etc. Of course, a wireless keyboard/mouse would be preferred for the best 10' experience. Maybe it will support USB cameras as well for 2-way videoconferencing and audioconferencing over IP (VoIP). It could use Bluetooth for the audio part, so you can answer VoIP/video calls on your TV using your favorite Bluetooth headset, such as the Plantronics 510-USB. Or since the set-top box is already connected to your home stereo system, you could pipe the caller's audio out your 5.1 surround sound speakers so you can have a headset-free, handset-free, speakerphone-type call in 3D surround sound!

Of course, then you'd need a really good echo canceller built into the set-top box, which will add to the unit cost of the set-top box. Still, a cool future concept. Not to mention cable companies typically charge you a maintenance fee on the set-top box, a remote control renting charge, etc. So I'm sure they could recoup their costs. So... ummm.. any takers? I can be a beta tester! smile

Anyway... Check out Russell's post...

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Tags: fiber, internet, verizon, video, video conferencing, voip
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Written by VoIP & Gadgets Blog on September 28th, 2006 with no comments.
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Verizon races to build fiber to fend off VoIP and cable rivals

In an interesting NY Times article, Verizon says it must quickly build its fiber network to fend off rivals such as Comcast and Vonage, which offer inexpensive voice alternatives. With cable companies and single-play VoIP providers (Vonage, Packet8, Lingo, etc.) offering cheaper voice, Verizon is in a race to stop customer defections. According to the article, Time Warner Cable, Cablevision and others are taking about 1,000 Verizon phone customers per day.

Verizon fiber installation

Verizon will spend about $20 billion before the end of the decade to reach 16 million homes from Florida to California. However, it is New York City with its dense population and greatest potential for revenue that has caused Verizon to spend about $3 billion to reach the city’s 3.1 million homes and apartments. With fiber, Verzion will be able to offer voice, data, and video services.

According to the article, "To sell the television services that it believes will really help it win back customers, Verizon needs to win a franchise from the city similar to what Cablevision and Time Warner Cable now have." This may be inaccurate, since I thought Congress's H.R. 5252 removed the requirement to pay local municipalities a franchise fee? H.R. 5252 would allow providers of cable service to apply to the FCC for a national franchise in lieu of negotiating separate franchise agreements with states and localities for providing cable service to a local area. Ironically, the bill also required VoIP providers to connect users to emergency 911 telephone service, as I explained in a recent entry. I'll have to look into franchising requirements some more, but I thought a nationwide franchising law was passed by Congress.

Eventually FTTH (fiber to the home) will be commonplace - the race has already begun. My question is where does this leave "one trick" ponies like Vonage which only do voice? The phone/comment lines are open...

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