Competition is coming to the District’s cable market, albeit slowly.
Verizon and D.C.’s Office of Cable Television have struck a deal on a 15-year franchise agreement to bring the telecommunication giant’s FiOS television/high-speed Internet/telephone service to the city for the first time. The contract was presented to the D.C. Council on Tuesday for review.
Before FiOS TV service is unleashed on Washington, Verizon must upgrade its network and cables to fiber optic — a process that will take years and require digging. The proposed agreement calls for a phased rollout, with the first neighborhoods in Northwest and Southeast seeing service by 2012 and the next group, in Northwest, Northeast and Southwest, by 2015.
“This is a significant undertaking for us,” said Karen Campbell, vice president and chief policy officer with Verizon DC. “We’re actually building a brand-new network. Frankly, we may need that much time.”
Comcast has had a near-monopoly on D.C. cable TV service for years, spurring calls for competition from consumers. RCN also serves a small percentage of District customers.
“This bill will put the District on track to reap the benefits of an advanced, all-fiber-optic network that will offer additional cable TV competition and significantly higher broadband speeds,” Ward 3 D.C. Councilwoman Mary Cheh, who has oversight of cable television issues, said in a statement.
Cheh plans to hold a public hearing on the deal soon.
Campbell said Verizon is developing its construction timelines now. The company is investing $18 billion nationwide in the FiOS rollout, she said, but there was no D.C. specific cost estimate.
Under the proposed franchise agreement, Verizon will provide nine public, education and government access channels, with the possibility of adding five more. Verizon’s franchise fees, paid to the District’s Office of Cable Television, will equal 5 percent of gross revenues on cable TV service. The deal also details customer service requirements.
