Verizon's TV Show
Stocks: (VZ)(T)(CMCSA)(TWX)(DISH)
Verizon (VZ) has announced that it is lining up programming for the TV network it is creating new content for consumers who use the company's FiOS system. The new deal, with the Public Broadcasting System, now gives the Verizon fiber optic to the home operation another significant programmer as part of its channels. The FiOS operation offers 400 channels but the service is now limited to certain states, but Verizon is obviously ready to roll-out across more of the country.
AT&T, the merger of SBC and the old AT&T, has targeted a July launch for its TV over the internet product, uniting movies from Movielink and satellite TV from Echostar. The new system, called Homezone, will be combined high-speed internet, TV and VoIP.
The market seems skeptical that these new offerings will be the solution to the downward move in these company's stocks. Maybe the cable companies have too much of a lead.
The markets are fairly happy with the prospects of both AT&T and Verizon. This is despite the moves that the cable companies have made into the phone business by packaging VoIP with broadband.
AT&T is certainly viewed has having a promising business. The stock in near a 52-week high at $27.97. Revenue from 2004 to 2005 went up from $40.8 billion $43.9 billion. Revenue in the first quarter of 2006 was $15.8 billion and operating income was $2.2 billion.
Verizon trades at $32.72, in the middle of its trading range for 12-months with a high/low of $35.26/$29.13. Verizon has not only introducing the new TV service but it has even sued Vonage, the largest VoIP provider in the U.S. based on patent violations.
Verizon has also done well financially. Revenue in the calendar year 2005, was $75.1 billion, up from $71.3 billion in 2004. Revenue in Q1 2006 hit $22.7 billion and operating income was $3.9 billion. Both were improvement from the immediately previous quarter.
The cable operators, especially the large one like Comcast and TimeWarner are likely to fight the telco TV initiative both by lowering rates and by lobbying the federal government to slow down the distribution of programming by Verizon, AT&T and their counterparts around the country.
Someone will loss here, but it is hard to tell at this stage who that will be.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in the companies he writes about.
Verizon (VZ) has announced that it is lining up programming for the TV network it is creating new content for consumers who use the company's FiOS system. The new deal, with the Public Broadcasting System, now gives the Verizon fiber optic to the home operation another significant programmer as part of its channels. The FiOS operation offers 400 channels but the service is now limited to certain states, but Verizon is obviously ready to roll-out across more of the country.
AT&T, the merger of SBC and the old AT&T, has targeted a July launch for its TV over the internet product, uniting movies from Movielink and satellite TV from Echostar. The new system, called Homezone, will be combined high-speed internet, TV and VoIP.
The market seems skeptical that these new offerings will be the solution to the downward move in these company's stocks. Maybe the cable companies have too much of a lead.
The markets are fairly happy with the prospects of both AT&T and Verizon. This is despite the moves that the cable companies have made into the phone business by packaging VoIP with broadband.
AT&T is certainly viewed has having a promising business. The stock in near a 52-week high at $27.97. Revenue from 2004 to 2005 went up from $40.8 billion $43.9 billion. Revenue in the first quarter of 2006 was $15.8 billion and operating income was $2.2 billion.
Verizon trades at $32.72, in the middle of its trading range for 12-months with a high/low of $35.26/$29.13. Verizon has not only introducing the new TV service but it has even sued Vonage, the largest VoIP provider in the U.S. based on patent violations.
Verizon has also done well financially. Revenue in the calendar year 2005, was $75.1 billion, up from $71.3 billion in 2004. Revenue in Q1 2006 hit $22.7 billion and operating income was $3.9 billion. Both were improvement from the immediately previous quarter.
The cable operators, especially the large one like Comcast and TimeWarner are likely to fight the telco TV initiative both by lowering rates and by lobbying the federal government to slow down the distribution of programming by Verizon, AT&T and their counterparts around the country.
Someone will loss here, but it is hard to tell at this stage who that will be.
Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in the companies he writes about.
posted by douglas mcintyre at 10:57 AM
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