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 The key driver in the landline services market will be the race to offer the most attractive service bundles. Standalone landline subscriptions will become a rarity. For landline carriers, the newest element in the service bundle is television. Verizon and AT&T have been the most aggressive among landline carriers in introducing television. Verizon will have spent approximately $23 billion during the 2004–10 period to build an FTTH service that will provide television along with fast Internet and voice. Its fiber optic service (FiOS) network is expected to be available to 18 million homes by 2010. In 2007, there were more than 1.3 million FiOS Internet subscribers and more than 700,000 FiOS television subscribers.
- Verizon is not compressing its digital or high definition (HD) signals and is marketing FiOS as providing a superior picture and faster Internet speeds than its competition.
- AT&T is spending approximately $6.5 billion over the 2004–08 period to construct its U-verse network, which is expected to be available to more than 25 million homes.
- U-verse is a fiber-to-the-node (FTTN) Internet protocol television (IPTV) service that connects to the home via very high speed DSLs (VDSLs). In contrast with traditional cable or FiOS, by which all channels are delivered simultaneously to the set, with IPTV only those channels selected by the viewer are delivered to the set, which reduces bandwidth needs.
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