Comcast in Pittsburgh

Threatened by impending arrival of Verizon FIOS

Comcast has long reigned surpreme as a cable and internet provider in the city of Pittsburgh. However, they may soon be facing some competition. If the public Cable Communications Advisory Committee and City Council approve the deal, Allegheny County's biggest municipality would join about 70 smaller ones in which TV carried by fiber-optic lines competes with delivery via standard cable systems and satellite.

Shortly after the decision is made, assuming it passes in their favor, Verizon pledged to offer FiOS-TV in some neighborhoods, in half of the city within three years, and to all of its homes within six years, or face fines.

Comcast is expected to fight hard to keep its 93,000 city subscribers, and may have more pricing flexibility than its new city competitor.

But competition among Verizon, Comcast and other providers hasn't produced big price drops nationally. And even though satellite TV, which is available pretty much anywhere, consistently undercuts cable TV prices, companies like Satellite TV and Dish Network have had little effect on cable TV rates.

Comcast does not feel they need to make big price cuts at the beginning, because Verizon's rollout will take a full six years. And even when FiOS is available across the city, residents may not see Comcast cut prices across the board, rather, cable providers may offer deals on a case-by-case basis. For example, if a customer called in threatening to cancel Comcast service in favor of Verizon, Comcast may offer to match the price. Or it might instead offer enhanced services -- free DVR, a free cable package upgrade, or a free premium channel.

FiOS Internet service is already available in parts of Banksville, Beechview, Bloomfield, Brookline, Carrick, East Hills, East Liberty, Friendship, Garfield, Highland Park, Homewood, Larimer, Lincoln-Lemington, Morningside, Overbrook, Point Breeze, Regent Square, Stanton Heights and Swisshelm Park.