Verizon, City Reach Deal on Cable TV Service

The Bloomberg Administration has reached an agreement with Verizon for a new citywide cable television franchise contract signaling the beginning of the end of a cable marketplace that has been dominated by one provider, Time Warner Cable.

"New Yorkers must have access to choice among world class cable television service providers," the deputy mayor for economic development, Robert Lieber, said at a press conference this morning where he announced the agreement.

"This is a historic agreement that when approved for the first time will bring true cable television service competition in each in every home in all five boroughs of New York," he said.

Upon approval first by the City's Franchise and Concession Review Committee and then by the State New York State Public Service Commission, construction on a new fiber optic system will commence with the first consumers accessing the new service by the end of this year.

Verizon will enhance the offerings and extend its network to reach every home in the city. The city in turn will get 5% of all new cable fees generated by Verizon.

Verizon said that 30% of the new network would be built by the end of 2008, 50% by the end of 2010, and 100% by 2014.

Mr. Lieber along with the commissioner of the department of information technology and telecommunication, Paul Cosgrave repeatedly stressed that all New Yorker residents in the five boroughs regardless of income would have fair access to the new network.

The city said that solicitations from other interested cable provider capable of providing the build out to reach all city households remains open.

The agreement also adds a number of new customer service protections. Mayor Bloomberg was not on hand for the press conference having recused himself because of his holdings in his own media company.