Verizon's Muddy TV Picture

Olga Kharif writes:  "... The telcos better pick up the pace. By the end of 2007, 12% of residential consumers will be buying phone service from cable outfits, vs. 4% now, according to tech consultancy Convergence Consulting Group. Over the same period, phone companies will have signed up only 2% of TV-service subscribers, CCG predicts.  ¶  That's far below the 20% to 25% share that telcos will need in order to make money on the service, says Mitch Mitchell, an analyst at strategy consultancy A.T. Kearney. As things stand, telco TV providers might not break even, on an annual basis, for 10 to 15 years, says Albert Lin, an analyst at American Technology Research.  ¶  Here's why: Verizon and peers will spend untold billions laying the fiber-optic cables that will carry TV services directly to homes and neighborhoods. Then there's the cost of programming and attracting customers. To promote the new service, Verizon has launched a direct-marketing campaign. It has also opened up special lounges where people can try its TV service and has hired street teams to do door-to-door promotions, according to Verizon. ..."  Link:  BusinessWeek.