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story category Time Warner Cable Stock Takes FiOS Hit
And Verizon's network isn't even actually built yet....
10:21AM Tuesday Jul 22 2008 by Karl Bode
tags: Fiber · competition · business · cable
Last week Verizon finally got full franchise authority to deploy FiOS to NYC, something they've promised to complete by 2014. That's not particularly good news for Time Warner Cable. Since they've yet to deploy DOCSIS 3.0 and can't offer equivalent upstream speeds, that means they'll have to engage in price cuts. That makes investors sad. This week Jim "keep your money in Bear Stearns" Cramer says Time Warner Cable is not ready for FiOS, and one analyst cut TWC's rating to a "sell", even though the NYC FiOS network isn't even built yet:
Click for full size
In NYC, Verizon will offer its typical "triple-play" package of cable TV, high-speed Internet access, and phone service for $99.99 per month, with a $69.99 introductory rate for the first six months. In Manhattan, Greenfield notes, TWC's cheapest comparable plan for current customers is $119.95 per month. Ignoring activation costs and taxes, Verizon's bundle comes in some $515 cheaper over a 24-month period -- though Greenfield notes that you can get a discount of $7-$30/month just by telling TWC you're considering switching.
Time Warner Cable's chief operating officer Landel Hobbs has stated he thinks they're ready for FiOS, and will counter the technology by locking customers into "price for life" triple play bundle promotions. They also say NYC will be the first TWC market to see DOCSIS 3.0, but haven't stated when. Until then, they've taken to pretending they offer last mile fiber and picking on the FiOS name. Probably a good idea to leave those caps at home.

It's kind of a losing proposition for any ISPs trying to please the stock jocks. Verizon took an absolute beating initially for investing so much money ($24 billion, to be precise) in last mile fiber, with some going so far to insist the company was "doomed." Now investors are hammering Time Warner Cable for not keeping pace with the same service they were slamming a few years ago as being too ambitious.

Related:
  1. FiOSTV Coming to NYC
  2. Clarksville Fiber Rolls On
  3. Symmetrical FiOS Expansion Official
  4. Michael Bay 'Awesomely' Blows Stuff Up For Verizon
  5. Verizon Advertising: Do As We Say, Not As We Do
  6. Telecom Giants Try To Fix Dismal Customer Service
  7. Verizon In No Rush To Go Pure IPTV
  8. Cox: DOCSIS 3.0 Upgrades By Third Quarter
Forums » Time Warner Cable Stock Takes FiOS Hit
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PhoenixDown
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Price for life triple play?

Not that I believe them, but maybe that will help curb the dramatic cable tv increases seen year over year.

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Price for life triple play?

said by PhoenixDown See Profile :

Not that I believe them, but maybe that will help curb the dramatic cable tv increases seen year over year.
I'm sure there will be 40 pages of tiny font legally allowing them to raise prices as they see fit while heavily penalizing anyone that tries to cancel their service. Somehow, our cable bills continue to go up, whether it is recouped on the TV side or added as a special "fee", it always increases at a rate far greater than that of inflation.

Rob
In Deo speramus
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Kendall, FL
·Comcast
·AT&T Southeast

said by PhoenixDown See Profile :

Not that I believe them, but maybe that will help curb the dramatic cable tv increases seen year over year.
Sure. The TV will stay the same. But those "government" fees, will just keep going up.

kfsutops
Premium
join:2002-08-19
Brandon, FL
clubs:

"price for life"

But what about "caps for life?"

TWC needs all the competition they can get. Scumbags.
--
"There are no stupid questions, but there are a LOT of inquisitive idiots"

XBL2007

join:2001-01-03
Chicago, IL

National Broadband Plan

How about they all have to upgrade their networks to fiber and also have standard based plans since they all exist as regional monopolies.

Mike
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join:2000-09-17
Pittsburgh, PA
clubs:

Re: National Broadband Plan

That would be as effective as the national railroad policy.

I'm all for a national broadband fiber policy, as long as business and the government has no part on it.

XBL2007

join:2001-01-03
Chicago, IL
·AT&T Midwest

Re: National Broadband Plan

said by Mike See Profile :

That would be as effective as the national railroad policy.

I'm all for a national broadband fiber policy, as long as business and the government has no part on it.
Who will have a part in it then?

N3OGH
They both suck, we're so screwed
Premium
join:2003-11-11
Philly burbs

Re: National Broadband Plan

No one, that's the point.

Smacking forehead...
patcat88

join:2002-04-05
Jamaica, NY

said by Mike See Profile :

That would be as effective as the national railroad policy.
Wrong, that would be as effective as the national highway policy.
Josimars

join:2001-04-24
Port Chester, NY

I do not like government telling private industries what they have to do.What the government needs to do is to facilitate innovations and to watch out for collusions on pricing or any other activity that distort the market, the market will then take care of the rest.

XBL2007

join:2001-01-03
Chicago, IL
·AT&T Midwest

Re: National Broadband Plan

said by Josimars See Profile :

I do not like government telling private industries what they have to do.What the government needs to do is to facilitate innovations and to watch out for collusions on pricing or any other activity that distort the market, the market will then take care of the rest.
Sadly the market is completely rigged.
smcallah

join:2004-08-05
Home

2014 is 6 years away...

6 years is a long time, especially to call TWC out now for not having deployed DOCSIS 3.0 yet. And then another assumption is made that Verizon will keep the same FIOS prices for 6 years.

Verizon hasn't deployed FIOS in NYC yet either, so what's the point of the article? To say how awesome (theoretically) Verizon is and how much cable sucks?
UofMiamiGrad
Premium
join:2001-02-03
Great Neck, NY

Re: 2014 is 6 years away...

said by smcallah See Profile :

6 years is a long time, especially to call TWC out now for not having deployed DOCSIS 3.0 yet. And then another assumption is made that Verizon will keep the same FIOS prices for 6 years.

Verizon hasn't deployed FIOS in NYC yet either, so what's the point of the article? To say how awesome (theoretically) Verizon is and how much cable sucks?
FIOS is in NYC, no idea where you got the idea it wasn't in NYC at all.

FLengineer
Premium
join:2007-06-26

edit:
July 22nd, @11:07AM

Verizon started Installations a week after the franchise was approved. It won't be completed for 6 years. Check the forums there are customers in NYC now.

FIOSvzTWC

@mindspring.com
Both companies have done nothing in NYC.

TWC is still at their regular speed tier here and Verizon is still copper pots here with its DSL service. And its doubtful that any upgrades will come anytime soon.

GoodDog

join:2000-07-03
Goshen, NY

Confused

I am confused. didn't Time Warner spin off TWC, trading under a different stock? If so, what does Batman and TW have to do with TWC?

Skeedatl
Ah, push it - push it real good
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edit:
July 22nd, @10:39AM

Couple of things

Most people don't triple play. VZ is losing more (POTS) subs to cable than cable is losing subs to VZ. VZ is raising rates (at least here in SoCal) at a remarkable rate. And 1 market (NYC) does not define TWC's future.

TWC can certainly hold their own against Verizon in video services and in terms of HSI, like everything else, people shop price. Speed and caps for the most part are irrelevant as evidenced by the VZ FiOS HSI tiers people are buying (namely the lowest one). "We" care about speed and caps, but the market couldn't give a shit less so long as it's 30 bucks.

fatmanskinny
Premium
join:2004-01-04
Atlanta, GA
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edit:
July 22nd, @11:29AM

Re: Couple of things

said by Skeedatl See Profile :

Most people don't triple play. VZ is losing more (POTS) subs to cable than cable is losing subs to VZ. VZ is raising rates (at least here in SoCal) at a remarkable rate. And 1 market (NYC) does not define TWC's future.
Here in AT&T versus Comcast land, Comcast is getting a lot of people from AT&T POTS. However, like anything, you have to give it time.

When AT&T get their IPTV going, you will begin to see Comcast lose more cable customers.

Also, Comcast is taking a beating from Verizon up in New England. The Comcast tech who installed my Digital Voice transferred down to Atlanta about 2 days before my appointment. Why?? Because Verizon is killing them so bad, he was offered a transfer or lose your job scenario.

Another point is when more companies are available to offer you the same or very similar services in your area, that is usually a good thing. Being that the telcos had people locked in with the traditional land-line, cable companies couldn't compete. VOIP changed that game.

Now, with IPTV, the telcos are going to swing some of the customers back their way. The value of having POTS through a telco and cable through a standard cable company have decreased. IMHO, it is good for the customers.
--
The only place where Success comes before Work is in the dictionary.
MrSpock29

join:2008-02-09
Hammonton, NJ

said by Skeedatl See Profile :

Most people don't triple play. VZ is losing more (POTS) subs to cable than cable is losing subs to VZ. VZ is raising rates (at least here in SoCal) at a remarkable rate. And 1 market (NYC) does not define TWC's future.

TWC can certainly hold their own against Verizon in video services and in terms of HSI, like everything else, people shop price. Speed and caps for the most part are irrelevant as evidenced by the VZ FiOS HSI tiers people are buying (namely the lowest one). "We" care about speed and caps, but the market couldn't give a shit less so long as it's 30 bucks.
I do believe that when VZ can offer triple play, they might slow their losses in POTS, but I could be wrong. I know down here, many switched to Comcast for their triple play, but moany would love to switch to VZ triple play because Comcast has so many problems with their phone service down here. But there is no FiOS here, and because Comcast doesn't share their RSN with sat cos., they have effectively prevented more people from leaving than otherwise would-the RSN issue is HUGE in this area, as they televise 3 of the 4 major sports teams for probably more than 90% of the games. So VZ triple play is not much of an option down here.
I have family that has it, and they have averaged at least 1 outage/problem per month. Haven't had one issue since switching back to VZ. If Comcast continues to have subpar phone service, I think some people might get rid of that.

Skeedatl
Ah, push it - push it real good
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Re: Couple of things

It's not VZ's POTS "service" that is causing customers to flee...it's the price. They keep raising prices on the add-ons like $7.50 alone for Caller ID and adding junk fees like the "you didn't use enough long distance" fee. They quickly turn a $15 bill into a $30 bill.
MrSpock29

join:2008-02-09
Hammonton, NJ

Re: Couple of things

said by Skeedatl See Profile :

It's not VZ's POTS "service" that is causing customers to flee...it's the price. They keep raising prices on the add-ons like $7.50 alone for Caller ID and adding junk fees like the "you didn't use enough long distance" fee. They quickly turn a $15 bill into a $30 bill.
That is true, but I was also assuming that the triple play pricing between the 2 was pretty close, as those things are included in ours I believe. Then the difference becomes taxes.
But, after some of the many outages, some for hours, we had with Comcast phone, I came to the conclusion I would be better off paying more for a service that actually is reliable. Having a 3 hour total outage one night when my father was in the hospital is something that won't leave my memory to soon. But maybe not everyone has had those issues we did.

Skeedatl
Ah, push it - push it real good
Premium
join:2007-12-26
The Cloud

Re: Couple of things

In my market VZ was higher with 3-play and their POTS unlimited talk package was 50% higher than cable.
MrSpock29

join:2008-02-09
Hammonton, NJ

Re: Couple of things

said by Skeedatl See Profile :

In my market VZ was higher with 3-play and their POTS unlimited talk package was 50% higher than cable.
I'd have to look through that 1,453 page bill to check for the triple play billing to get the price lol

But, my second line I got for $25 with the features, it's just the taxes that gets me there.
patcat88

join:2002-04-05
Jamaica, NY

said by Skeedatl See Profile :

It's not VZ's POTS "service" that is causing customers to flee...it's the price. They keep raising prices on the add-ons like $7.50 alone for Caller ID and adding junk fees like the "you didn't use enough long distance" fee. They quickly turn a $15 bill into a $30 bill.
What about the tone dialing charge?

mikepd
Discovery
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Investors can be Idiots

Investors almost never think long term. Of course they gave Verizon a beat down for investing so much money in FIOS.

However, once the network is fully deployed, any upgrades will only be to the electronics which make it simple and cost-effective to keep up with whatever new technology the future brings along.
--
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TK Junk Mail
Go ahead, make my day
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edit:
July 22nd, @10:50AM

Cable beaten down - not just TWC

It's kind of a losing proposition for any ISPs trying to please the stock jocks. Verizon took an absolute beating initially for investing so much money ($24 billion, to be precise) in last mile fiber, with some going so far to insist the company was "doomed." Now investors are hammering Time Warner Cable for not keeping pace with the same service they were slamming a few years ago as being too ambitious.
Comcast has been beaten down the same as TWC, even though they are further along to Docsis 3. And Verizon stock never did get beaten down over Fios, though analysts complained. Somehow I think Fios and Cables reaction to Fios is not what is driving their stock prices. Verizon is doing well because of its normal telecom business and their Fios business has had little effect.


Last 18 months Dow & companies

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FLengineer
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edit:
July 22nd, @11:18AM

Re: Cable beaten down - not just TWC

"normal telecom business"??? Copper?

Did you miss the DSLR stories about this?
»Verizon Could Face Fines For DSL, Landline Neglect
»Union Protests Verizon's Neglect Of Copper
»Verizon Neglecting Copper For FiOS
»Neglecting Copper

TK Junk Mail
Go ahead, make my day
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Margate City, NJ
clubs:
·Comcast

Re: Cable beaten down - not just TWC

said by FLengineer See Profile :

"normal telecom business"??? Copper?

Did you miss the DSLR stories about this?
»Verizon Could Face Fines For DSL, Landline Neglect
»Union Protests Verizon's Neglect Of Copper
»Verizon Neglecting Copper For FiOS
»Neglecting Copper
And what does any of that have to do with Verizon making gobs of money on their wired and wireless phone business. All they do is show Verizon is cutting costs.
--
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Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?

FLengineer
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edit:
July 22nd, @12:31PM

Re: Cable beaten down - not just TWC

Verizon is loosing voice and dsl customers to cable and wireless providers. Or they are selling them to other companies like Fairpoint.

As for Verizon Wireless, sorry didn't see them in your orginal post or the graph, didn't realize we was talking about a completely different company.

FLengineer
Premium
join:2007-06-26

Re: Cable beaten down - not just TWC

In fact ALL telcos are loosing POTS customers at an unbelievable rate.

supergirl

join:2007-03-20
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Re: Cable beaten down - not just TWC

said by FLengineer See Profile :

In fact ALL telcos are loosing POTS customers at an unbelievable rate.
I know Cox here has 40-50% of POTS customers on CDV. $20 cheaper is why. Cox also always has a free month or 3 months at half price promotions unlike AT&T.
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kpfx

join:2005-10-28
Kerrville, TX
·RoadRunner Cable

I will give Verizon and AT&T kudos for having the most talented marketing agencies and PR people spinning their stuff. Its a smoke-and-mirrors act by distracting investors with FiOS and Uverse projects. If I only read what was released by the marketing departments then I really get the impression that the Telcos are "working on this massive loss" and thus aren't getting their stocks slammed.

Lets not forget the huge mountains of money that Verizon and AT&T have saved up which will keep them floating along no matter what (compared to most cable companies which are still carrying substantial debt).

Meanwhile Cable doesn't have a big advertising campaign and spokesperson for DOCSIS 3.0 or Switched Video technologies which are to be rolled out within the coming years. Looking at the short hand it really appears like Cable is about their collective rears handed back to them.

But the reality? As somebody mentioned earlier its 6 years till they have a substantial build-out on cable's footprint..... in the technology world that's an eternity and plenty of time for Cable to show their hand.

Next few years will be interesting indeed.

tschmidt
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join:2000-11-12
Milford, NH
·Verizon Online DSL

Verizon did get beat up for capex spending for FIOS. But I agree due to its size capex for FIOS was not as huge an investment as it is for Cablecos.

It is very hard for any CEO to make strategic investments due to the short event horizon of Wall Street. The Cablecos and Telcos have to decide whether to milk existing technology (DOCSIS & DSL) or deploy next generation fiber network. Jump in too soon and cost is too high, jump in too late and the market passes you by.

/tom

Gts
Hi

join:2000-10-27
Astoria, NY
·RoadRunner Cable
·AT&T CallVantage

Given a Choice

I have the PLG 2 year contract - Cable, Phone, HSI. Cant beat the price, but i know Verizon is going to be offering faster HSI and more channels for cheaper price.

So given a choice, of course im going to FIOS.

Do i think TimeWarner is going to upgrade their markets? Yes, but only with Direct Fios Competition. In other Markets within the country: Caps and metered access is their upgrades.

I wouldnt be surprised if Docsis 3.0 is coming to NYC - they have no choice but to.
patcat88

join:2002-04-05
Jamaica, NY

Re: Given a Choice

said by Gts See Profile :

I wouldnt be surprised if Docsis 3.0 is coming to NYC - they have no choice but to.
Probably not. The same way you can sell Herbal Viagra, lottery tickets from Nigeria, Role>quote:
Road Runner Basic Speeds up to 1.5 Mbps/256 kbps $29.95
rdmiller

join:2005-09-23
Richmond, VA

A lot of confusion here

All of these stories about FiOS and NYC are confusing because Karl doesn't make a distinction between FiOS and FiOS TV.

Like most other communities in Verizon's footprint, FiOS internet is available long before the FiOS TV franchise agreement is signed. NYC is just the most extreme example of this.

beatsnpieces

join:2007-12-17

False Advertising?

"Cable gives you fiber optics without the hassle."

How can they get away with that statement? Does this mean than any ISP using a hybrid fiber/copper plant can claim to provide fiber-optic service? If that isn't false advertising it has to be just barely on the legal side of it.
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N3OGH
They both suck, we're so screwed
Premium
join:2003-11-11
Philly burbs
·Verizon Online DSL

Re: False Advertising?

Comcast does the same thing, stating they have the largest fiber optic network, and most HD choices.

Most HD choices includes "On demand" programming.

Most fiber optic is the fiber optics going from the head ends to the nodes.

I don't know if it's false advertising, but it is very misleading and shady, IMHO.

Then again, Comcast is a pretty shady company
--
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beatsnpieces

join:2007-12-17

Re: False Advertising?

said by N3OGH See Profile :

I don't know if it's false advertising, but it is very misleading and shady, IMHO.

Well I have to agree with that one. I suppose you are right about the false advertising as I realized they don't actually say fiber to the home. Misleading and shady indeed.

Phil
Rojo Sol
Premium
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Camarillo, CA

Blockbuster meet Netflix...

Time Warner meet Verizon...

Ok, so not exactly the same, but it's nice to see some competition and in particular a company investing in the future.

fatmanskinny
Premium
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Atlanta, GA
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Re: Blockbuster meet Netflix...

said by Phil See Profile :

Time Warner meet Verizon...

Ok, so not exactly the same, but it's nice to see some competition and in particular a company investing in the future.
Don't forget those $1 a day DVD rental kiosks that you may find at Wal-Mart or any other major superstore. Also add in that the cable companies release the movie via In-Demand the same day it is released on DVD.

It is a dog-eat-dog-and-snack-on-another-dog world.
--
The only place where Success comes before Work is in the dictionary.

ToLazyToLogIn

@rr.com

Investors Jumping out windows again!

My local CO is being rigged for FIOS and I should have it within a year. I wonder if TWC/RR is going to pull the 40GB Cap bullshit in my area I was outraged to see TW screw over the folks Texas and I'm leaving the first chance I get!

SCCCCREEEEWWWW YOU TW!

FastiBook

join:2003-01-08
Newtown, PA
·Verizon FIOS

Hum...

I knew i went with FIOS internet/phone for a reason.....

If anyone was wondering, yes, the copper line is still buried out under my lawn , and can still be used in 90%+ of situations in case someone wants to bail on FIOS.

Once their tv pricing comes in line with the prices comcast offers us, we'll likely switch to that.

Xela19115

join:2000-10-06
Southampton, PA
·Verizon FIOS
·Sprint Mobile Broa..
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Re: Hum...

said by FastiBook See Profile :

Once their tv pricing comes in line with the prices comcast offers us, we'll likely switch to that.
I switched from Comcast's triple play to FIOS triple play and I'm saving almost $30 per month over Com[edy]cast
rody_44
Premium
join:2004-02-20
Quakertown, PA

Re: Hum...

your in the same area as me and from comcast i get digital with all the premiums for 63 a month with the triple play. so far verizon isnt even close.
Forums » Time Warner Cable Stock Takes FiOS Hit


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