Verizon is spending approximately $23 billion on fiber-optic network in cities in 16 states aroundthe country. The key service that Verizon offers is FiOS TV which is a multichannel videoservice which competes directly with incumbent cable operators’ offers. Other cable companiessuch as Comcast, Cox, Adelphia and Time Warner are raising cable modem speeds to competewith FiOS. Competitors are feeling the threat of competition from FiOS and thus, are forcing thecable operators to devote their time and money in developing new cable modem technologies.Future objectives of the competitors will be to compete more vigorously on multi product bundleoffers as well (Barnett, 2007).
B.Current Strategy :
Verizon, Comcast, Cox, Charter Communications, Time Warner and AT & T also have sufficientfinancial resources and experience to compete in the market for phone, internet, TV and wirelessservices. Comcast, Charter and Cox offer the triple play package which consists of phone, TVand internet services. Verizon is one step up by providing a quadruple package that includes the basic three with wireless phone service as an addition. Bundled services will enable customers tosimply have one monthly bill (Verizon, 2008). Verizon and Comcast especially are battling for customers with low introductory rates for the bundled services. For the first twelve monthsComcast offers all three services for $99 which might rise to $130 or more after that dependingupon the type of service. The introductory rate of Verizon is $104.99 and can be locked for oneor two years, or not locked at all according to Verizon spokesman Phil Santoro (Kirk – 2008).For promotional strategy, Verizon is offering free movie on demand to download inMassachusetts.