Editorial: Oakland on demand for FiOS

For 10 years, Pittsburghers have had just one choice when it comes to cable service: Comcast. Now, Comcast’s 10-year contract is set to expire at the end of this year. No, Comcast isn’t going anywhere, but the company better be ready for some competition.

A deal was announced between the city of Pittsburgh and Verizon on Monday to launch the cable provider’s FiOS TV service in the area. If city council and the city’s Cable Advisory Board approve the deal, it shouldn’t be long until certain areas in Pittsburgh can use Verizon.

Mayor Luke Ravenstahl said he wanted to bring competition to the Pittsburgh cable industry, according to the Pittsburgh Post-Gazette.

Considering that Comcast has faced zero rivalry for about a decade, it’s finally time for some healthy competition.

It’s a long-standing truth of the business world: Competition benefits the consumer most. First, competition between the two companies will keep prices reduced. Verizon has yet to establish a rate for its cable services, but it projects people living in the suburbs will pay $47.99 per month for 250 standard definition channels and local HD channels.

Once Verizon finalizes its prices, Comcast will have to match its rates, which could mean a reduction in the current prices. In addition to price comparisons, both companies must strive to offer superior customer service and to keep their products attractive.

Verizon plans to first offer FiOS to the Downtown, North Side and southern neighborhoods. These places are nearer to suburbs that already offer Verizon services.

Unfortunately, it could be three to six years until Oakland residents can opt for Verizon’s services. Adjacent neighborhoods, like Shadyside and Squirrel Hill, will also likely not get Verizon for some time.

Given their characteristic cash-strapped standing, local college students will have a propensity to go with the cheaper option. Thousands of Pitt students move off campus each year to live in Oakland or surrounding areas. Once Verizon comes to town, students will have more options, and the competition will yield better prices for all.

Yet, three to six years is a considerable amount of time from a technological standpoint. Today, HD TVs and channels gain ubiquity.

But no matter what the future holds for TV technology, competition will keep advances more monetarily feasible.

As the prices decrease, the city’s revenue will increase. By agreeing to let Verizon expand, the city of Pittsburgh will pick up 5 percent of its gross revenue — the same rate the city already receives from Comcast. Compared to other revenue generators — remember the drink tax? — this measure won’t be unpopular or controversial. And for Verizon, the rate seems an appropriate reimbursement.