Voice, Video and Data: New Offerings 'Converge' On New Jersey

New Jersey Business, Feb 01, 2007 by Porter, Brenda

No matter where New Jerseyans are, information is at their fingertips thanks to the convergence of voice, video and data. The meeting of these technologies will change the way businesses and residences in New Jersey think, view and communicate with the world around them.

"Convergence enables an easy entry for applications like mobility, presence, conferencing, video and unified messaging that traditionally were both expensive and difficult to implement ... prior to the roll out of a fiber optic network," notes James Hoffman, with the Edison-based consulting firm Tekmark Global Solutions. "Furthermore, the sky is the limit, since now the phone is no longer a phone - it is really a computer that looks like a phone. Therefore, all of the applications that are traditionally written for personal computers can now, in theory, be placed on the phone. The latter is where the home user can now take advantage of some 'neat' features that were only available to business users in the past."

Researchers Lee Rainie and John Horrigan, authors of the "Trend 2005" report, part of a publication from the newlycreated Pew Research Center, reveal, "A decade after Web browsers came into popular use, the Internet has reached into - and, in some cases, reshaped - just about every important realm of modern life. It has changed the way we inform ourselves, amuse ourselves, care for ourselves, educate ourselves, work, shop, bank, pray and stay in touch."

According to Hoffman, convergence will grow the Internet Service Provider (ISP) market since more and more people are taking advantage of Internet Protocol (IP) technologies. "People will be required to have better dedicated Internet access. This will also force the communications carriers to improve upon their existing architecture to meet the demand of both the business and consumer market." Today, service providers are responding by offering next generation voice, video and data applications.

"New Jersey [is] at the forefront of the digital revolution with broadly deployed, fiber-rich networks throughout the state. New Jersey is also a very competitive marketplace for business and residential customers looking for value," notes Mark Nevins, spokesperson for the NJ Cable Television Association. "Customers can choose between a local cable operator, two national satellite providers, and, in some areas, a wireline provider like the phone company for their video service; and they can choose between dozens of providers for their phone and Internet service."

Carriers like traditional phone companies and cable companies are changing the marketplace by playing in each other's fields. Over the last two years, Verizon has been rolling out its FiOS fiber optic voice and data platform. To date, more that 200 towns are wired.

When the telecom giant first set out to have a bill passed allowing it to offer a triple play of services - voice, television and Internet - last year, it naturally was met with strict opposition from cable companies and several municipalities.

"We believe that residential and business subscribers will find very quickly that Verizon is simply trying to play catch-up by deploying a 'me-too' service that offers little to customers and, in many areas, is [not] available," notes Nevins of the New Jersey Cable Television Association.

He adds, "Cable companies already offer service over a fiberrich network. We already provide a robust library of alldigital, on-demand video, we already offer digital phone service, and we already provide lightening-fast, high-speed Internet service. Cable provides all of these services including a customer-friendly 'triple play' bundle - at various prices designed to meet the individual needs of New Jerseyans."

Chief among the objections, the groups argued that Verizon should follow state law and negotiate individually with the more than 500 municipalities to ensure its share of income generated from consumer fees. Another complaint was that the telecom giant would bypass poorer communities with this network in favor of those more affluent.

In August 2006, Governor Corzine signed the Video Choice Legislation into law, which allowed a single-state issued franchise in New Jersey, rather than make phone companies go town by town for approvals. With the last obstacle to its $1.5 billion roll out of voice, video and data services removed in August, Verizon received the green light to continue construction and deployment of its state-wide highspeed fiber network.

By the middle of December, Verizon New Jersey won approval from the New Jersey Board of Public Utilities to offer television programming to 100 communities. It plans to reach 190 towns by the end of the first quarter, and 300 towns by the end of the year.

Additionally, in late December, the Federal Communications Commission approved rules making it easier for Verizon and AT&T to sell television service.

Verizon's basic television package offers 200 all-digital channels, has access to some 4,000 on-demand movies, includes more than 20 high-definition channels and costs $42.99 per month.