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. Venice seeks cable TV competition The city, long served by Comcast, will begin talks with Verizon By PAUL QUINLAN
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VENICE -- Frustrated by Comcast's more than 15 percent hike in basic cable TV rates over the past three years, the Venice City Council is pushing to bring another competitor to town.
The council this week voted to have City Manager Marty Black begin negotiations with Verizon over a cable franchise agreement, which would allow the telecommunications giant to offer residents FiOS TV, its new digital television service delivered over a fiber-optic network that also carries telephone and high-speed Internet service.
City Councilman Fred Hammett said he contacted Verizon out of frustration with the rates and packages offered by Comcast, currently Venice's only cable provider.
The cost of Comcast's basic cable package has climbed about 5 percent each year from just over $40 a month in 2002 to $47.50 currently.
Last year, the cable provider also eliminated its $16.25-per-month Value Pak plan, forcing Value Pak customers who wanted to keep some of the channels offered under the package, such as the History Channel or Fox News, to upgrade to what was then its $42.95-a-month plan.
"Comcast has raised rates every year since I've been on council," Hammett said. "I think it's appropriate to have an alternate for the community for cable service. If you have something other than a monopoly, usually the service gets better or the service gets less expensive."
If negotiations with Venice are successful, Verizon could introduce its digital television and high-speed Internet services in Venice within 12 to 18 months, according to Verizon spokesman Bob Elek.
Verizon began laying its fiber-optic network in 2004 in Hillsborough and Pasco counties, working its way down to Manatee and northern Sarasota County in late 2004 and early 2005, introducing Internet services along the way.
In late September, the company unveiled FiOS TV in a small Texas town, the first step toward introducing video to its line of voice and Internet services.
But before it can provide television service, Verizon must reach franchise agreements with each county and municipal government. Verizon has already signed cable franchise agreements with Temple Terrace and Manatee County, though the Manatee County agreement would only allow it to service its unincorporated areas; cities must negotiate separately.
Verizon has encountered resistance in Bradenton and has struggled to obtain the necessary permits to dig within Sarasota's city limits.. .
Sarasota officials imposed strict guidelines on the phone company to avoid incidents in which workers strike existing utility lines, as had occurred during Verizon's line installations in Hillsborough County.
Meanwhile, Verizon has yet to speak with North Port officials and has tangled with Sarasota County officials for more than a year over issues related to its rates and intended service areas.
Sarasota County commissioners are scheduled to vote on Nov. 8 on whether to begin franchise negotiations with Verizon.
"My goodness, we've been talking to them for over a year, and we're only now getting to the point where they're agreeing to negotiate," said Elek. "We want to get out there and provide consumers competition and choice for their video options, but we've got to get through this jungle of franchising."
The eagerness to lay its network and secure the necessary governmental approval to deliver television service reflects Verizon's need to begin harvesting returns on its multibillion dollar foray into the cable television business.
There's also pressure from Comcast, which has begun to roll out a digital telephone service in six major cities. Called Comcast Digital Voice, it's a digital telephone service that allows subscribers to make unlimited calls without long-distance fees for $54.95, or less for cable TV and Internet subscribers.
Comcast expects to make the digital calling service available to all its customers in 2006.
The competition will inevitably bring better service and lower rates to customers.
"We're in the middle of a huge wave of change, and most people don't even realize it," said Jeff Kagan, a telecom industry analyst based in Georgia.
Since buying out Storer Cable in 1989, Comcast has reigned as Sarasota County's only franchised cable provider. Both Bright House and Verizon are poised to change that. Bright House filed a franchise application in June to introduce service to Lakewood Ranch.
Verizon's plans are far more ambitious, including expansion throughout Sarasota County, Manatee County and the Tampa Bay area.
Verizon touts its technology as far superior to existing cable systems, including Comcast's, because it tethers the fiber-optic line directly to the customer's home rather than connecting homes in a neighborhood to a shared access point via traditional metallic cables.
That eliminates a major engineering bottleneck and tees customers sharper pictures and faster Internet connections, Elek said.
"It's just you and the network," he said.
Comcast officials say they're undaunted by the prospect of Verizon's arrival in their back yard, though they recently called a meeting with Venice city officials to ensure that any franchise agreement reached with Verizon wouldn't unfairly favor the new arrival.
Comcast officials said they've long faced competition from satellite dish services and will continue to remain competitive with any new service providers.
"Comcast has worked hard to provide quality service at a good value, and we'll continue to do that," said Rod Dagenais, Comcast's area vice president. http://www.heraldtribune.com/apps/pbcs.dll/article?AID=/20051014/NEWS/510140505/1006/SPORTS
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