Head-end Headway

Verizon may be able to offer video in Tampa by early ’05, according to Viacom co-presidents Les Moonves and Tom Freston. They told Goldman Sachs’ confab Verizon’s built a headend in the Tampa area, which happens to be Adelphia and Bright House Networks territory. Viacom welcomes the telco’s move into the video-over-fiber biz, as such an arrangement would serve as yet another distribution channel. Verizon submitted a 21-page draft franchise agreement with the city in July. — Price War, Part II: Verizon is following BellSouth’s lead, cutting DSL rates by a fiver to $29.95/month (from $34.95) for its 1.5 Mbps/384 Kbps plan, and to $39.95 (from $44.95) for 3 Mbps/768 Kbps service. The company will make these rates available to existing and new customers who sign an annual contract or buy DSL as part of a bundle. UBS expects the 3Q ’04 breakdown of HSD net adds to fall in DSL’s favor, 50.4% to 49.6% for cable, vs the 53.2% garnered by DSL in 2Q ’04. Further price cuts could follow.