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Verizon Shows Off FiOS TV-Cellphone Integration



By Roger Cheng, Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Verizon Communications Inc. (VZ), eager to improve its feature edge against rivals in the television game, showed off the ability to tie together a cellphone with its FiOS TV service on Wednesday.

Verizon is in the middle of a fierce three-way battle for television subscribers, squaring off against the traditional cable providers and the satellite TV companies. Integrating the cellphone with TV, such as turning a BlackBerry into a remote control, is an advantage the competition can't easily replicate.

In the next three months, Verizon will release a program for cellphones that will allow them to act like a remote control. The phone will need the ability to access Wi-Fi, which few current Verizon Wireless devices have. The person can navigate or type words using the phone.

It's important that Verizon push for applications that can run on both cellphones and on TV, said Ruchir Rodrigues, vice president of product design and development for Verizon.

He added that current plans are for just Verizon Wireless phones, but the company is thinking about other carrier devices.

The New York telecommunications company lags AT&T Inc. (T), which has a headstart integrating its U-Verse TV service with the Apple Inc. (AAPL) iPhone. The two companies' TV services, however, don't compete.

Verizon also unveiled a slight upgrade to its FiOS TV service, including a recommendation engine for on-demand video, targeted advertisements based on geography, portals for HBO and Showtime, and more widgets such as a football program that displays statistics alongside a game. The changes will be rolled out next month.

The features serve as an important retention tool, and ultimately, an opportunity for more revenue.

The unveiling follows the launch of an App Store-like marketplace for widgets for FiOS last month.

Verizon has much at stake with FiOS, as the company is spending $18 billion on network upgrades to improve connection speeds and sell TV services.

Features such as digital video recorders and more high-definition channels have been key to allowing satellite provider DirecTV Group Inc. (DTV), which is also a Verizon resale partner, to successfully win market share. DirecTV also allows its customers to program its DVR with select handsets.

Cable providers such as Time Warner Cable Inc. (TWC) have also touted DVR- related features.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com


  (END) Dow Jones Newswires
  08-19-091553ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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