Summary: Verizon (NYSE:VZ) yesterday disclosed precise financial details of its attempt to enter into the cable TV business, as well as to provide customers high speed internet access. Because many companies offer package-deals to customers which include telephone, internet and cable TV service, Verizon has found it necessary to make major infrastructure improvements to continue to compete. The project is expected to cost the company an investment fee of $18 billion; they are expected to start turning profits on their new offerings in 2009. By then, Verizon hopes to have 20% to 25% percent of the U.S. cable TV market signed up, accounting for 18 million homes.
Related links: Full WSJ article • Press Release: Verizon Provides New Financial and Operational Details on Its Fiber Network as Deployment Gains Momentum • Verizon Communications Q2 2006 Earnings Conference Call Transcript • Chart: Telecom Stocks - Annual Earnings Growth • Sprint and Time Warner's Quadruple Play • Fiber to the Home: A World of Headaches for Comcast • Investor's Business Daily: Some Investors Still Wary Of Pricey Verizon Fiber Plan
Potentially impacted stocks and ETFs: Telecom: AT&T (NYSE:T), Sprint (NYSE:S), Time Warner Telecom (NASDAQ:TWTC), Bell South (BLS). Cable providers: Comcast (NASDAQ:CMCSA), Cablevision (NYSE:CVC), Time Warner (NYSE:TWX).
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