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Verizon nears pay TV deal

The company may start selling TV service in parts of Tampa in six to eight weeks, offering competition to Bright House Networks.

By JANET ZINK and LOUIS HAU
Published April 19, 2006

TAMPA - Tampa television viewers may soon have a choice in cable providers.

Verizon Communications and the city have reached a tentative 15-year franchise agreement, both parties said Tuesday. Once approved by the City Council, the deal would allow Verizon to begin offering pay TV service and provide an alternative to Bright House Networks.

A few details still need to be resolved, said City Attorney David Smith. But he hopes to take the terms to the council May 11.

"We're very happy to have competition for our residents," Smith said. "This should help bring prices down and provide better services."

Verizon expects to start selling TV service in parts of Tampa six to eight weeks after the pact is approved, company spokesman Bob Elek said. Neither the city nor Verizon revealed the timetable for the rest of the city.

First eligible will be about 35,000 households in the University, Hyde Park, Seminole Heights, Sulphur Springs, Beach Park and Bayshore Beautiful sections of Tampa, Elek said.

In preparation for its planned launch, Verizon has been laying miles of fiber optic cable in the city right of way for the past two years. To provide pay TV services that compete with Bright House and other cable companies, Verizon needed to reach a franchise agreement that includes providing public, educational and government access channels and money to support the channels.

The 15-year agreement calls for Verizon to provide six channels and $1-million to the city, then 65 cents each month for every Verizon subscriber.

Smith said that should put Verizon on a level playing field with Bright House Networks. The Bright House agreement requires six public, educational and government channels and $6.5-million in support, payable in several lump sums.

The agreement represents a major step in Verizon's efforts to roll out pay TV service to compete head-to-head with cable companies such as Bright House to sell customers packages of phone, high-speed Internet and pay TV services.

Verizon has launched TV service in Temple Terrace, parts of unincorporated Hillsborough County and unincorporated Manatee County. It is negotiating for franchises in Pasco County, Sarasota County and Oldsmar.

Verizon will offer up to 300 digital video and music channels, including 24 high-definition television channels and 4,000 movies on demand.

Currently, Tampa viewers must turn to satellite companies for programming alternatives.

Dan Ballister, vice president of communications for Bright House Networks, said his company welcomes the competition.

"Competition is a good thing for customers," he said.

That doesn't mean that people in Tampa can expect a sudden drop in monthly cable bills.

Bright House has been up against Verizon since December in Temple Terrace, and that hasn't resulted in any drastic price slashing, Ballister said.

But Bright House does offer "competitive packages and competitive pricing for customers that take all three of our services."

Janet Zink can be reached at 813 226-3401 or jzink@sptimes.com

[Last modified April 19, 2006, 01:57:07]