Verizon Communications Inc. (NYSE:VZ) To Launch IP-Only Television Transmission Service

It has emerged that Verizon Communications Inc. (NYSE:VZ) is in the process of testing and later launching a next-generation television service whose name has not yet revealed.  Verizon’s next-gen television service could be launched as early as this year. Filings by the regulator FCC show that Verizon will be testing an IP-only set-top-box that will dramatically change the way television content is transmitted to home. One of the advantages of an IP-based content transmission system is that it would require less bandwidth than QAM systems in use today.

The television service that Verizon Communications Inc. (NYSE:VZ) is developing will work like an on-demand and pay-as-you-watch service. It is a case where the system only streams the content you want, thus consuming less Internet.

The options

Although details about Verizon’s next-gen television service are presently scares, it appears the service will enable users with the option to choose between a bundled package and individual channels. Streaming services such as Netflix and Amazon Video are also expected to part of Verizon’s offerings under the new IP-based television transmission service.

Given that IP-only service requires less bandwidth than traditional content delivery systems, it is believed that Verizon Communications Inc. (NYSE:VZ)’s new television service wouldn’t require fiber-optic speeds. Nevertheless, it is not clear whether a dial-up service would support Verizon’s new TV service, but given that the company is also aggressively pushing toward mobile video, it is possible it would want to support mobile streaming of its new television service.

Race to video offering

Verizon is plotting a new way to deliver television at a time when mobile carriers are increasingly expanding in the video delivery space. AT&T Inc. (NYSE:T) acquired DirecTV to help it expand and diversify its video offering and Verizon responded with its Go90 ad-supported mobile video service.

Verizon Communications Inc. (NYSE:VZ)’s IP-only TV service is expected to further fuel the so-called cord-cutting whereby customers are abandoning bundled cable packages for Internet-based video services that are cheaper and less restrictive.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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