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Lerner J. Personal Page

TO: Proximity Video Team FROM: Jarret Lerner DATE: Feb. 21, 2010 SUBJECT: Verizon FiOS strategy analysis

Here is my Verizon FiOS strategy analysis. FiOS is trying to be the future of television. They have many advantages over other companies which lead Verizon to believed this. They have good technology and a good strategy to win over Gen Y users. With new features no one has seen before, they are looking to be the new face of television and put up good competition with cable.


 * Profile**

Verizon FiOS is Verizon's communications system used in some areas of the United States which includes internet, TV and telephone. It delivers a great High-Definition experience on the TV, and offers a super fast high speed internet connection. FiOS utilizes a fiber optic network, allowing for increased speed and bandwidth (Reese). It gives customers three speed choices for the internet option; each choice is faster than the other one. And the television option comes in a triple play bundle plan that comes with hundreds of channels including tons of movie channels, all the sports channels, international channels and many HD channels to satisfy the subscribers.

FiOS' s revenue comes from three sources:
 * Internet plans
 * Phone plans
 * Triple Play Bundles; Plans that include Internet, phone and TV deals


 * Competitive Landscape**

The main thing that gets everyone to buy a certain network is the price, especially in today's recession. Price dictates which network people will buy. . Verizon FiOS has different plans for all kind of speeds one would want for his/her home for different prices. Verizon's competitors are the cable companies such as Comcast Cable, Time Warner Cable and Cablevision. In the past year no cable company has boosted in a bigger percentage than FiOS. As of December 31, 2009 FiOS has over three million internet customers and over two million television customers, up over thirty percent in both categories since last year ([]/). After Cablevision kept dropping channels like HGTV and Food Network (Madison), people started to think about changing to FiOS, who get both of those channels, so they could get more for their money. Verizon believes that FiOS is "the future of HD entertainment" because not only do they have the extra channels that Cablevision's IO does not have, but also because the many advantages it has over their competitors:
 * 100 percent fiber optic
 * FiOS TV rated number one in customer satisfaction
 * Multi-room DVR—records on up to 6 rooms in the house
 * Access to Facebook and Twitter on the TV
 * Send pictures and video from PC to TV


 * FiOS's Strategy**

FiOS runs up against cable, who is charging a lot of money to buy a box to get every channel. In the meantime, Verizon is giving people the opportunity to buy FiOS for a cheaper price and getting more channels. With all the advantages that FiOS has over the other companies, they believe that they have the edge against other competitors. Especially with the fiber optic network, having fiber over copper gives a clearer picture and is more user friendly. It also targets the younger crowd with its Facebook, Twitter and games feature, which is a big plus in today's society.

"In total, Verizon FiOS is available to approximately 15.5 million premises within those states as of July 2009. Verizon has plans to keep FiOS deployment on a fast track with deployment reaching over 17 million homes by the end of 2010". Verizon is going to stay focused on the areas with FiOS and not deploy into other areas so they can be dominant in the certain premises ([]).


 * Gen-Y implications**

Even though the majority of people used to have cable, times have changed and a good number of people have been switching networks. Customers do not need to buy a separate box to get all channels, compared to Cablevision's customers who absolutely need to. Thts attracts a large number of people and also, the cost is very cheap. Gen Y users will be very attracted to all the options with all the of benefits with so much ease. People are getting everything they want and more with Verizon FiOS. It may be a different layout from Cablevision, but it is definitely something anyone can adjust to.

I think a lot of customers who are looking to save a few bucks and try something new will really try FiOS out and enjoy it. It is very basic and very easy to use, plus it has a very nice appearance. Everyone loves change, and during today's recession I think Verizon should continue to see an increase in users. .


 * References**

Wikipedia. (March 8, 2009). Verizon FiOS. Retrieved February 23, 20010 from []

Reese, Nick. Verizon Fios - Statistics and Technology. HubPages.com. Retrieved February 23, 2010 from []

FiOS, Verizon. (2010). Retrieved February 23, 2010 from []

Madison, Jillian. Breaking Story: Is Cablevision Dropping HGTV and Food Network? (2009, December 31). FoodNetworkHumor.com. Retrieved February 23, 2010 from []