Verizon, Turner Strike Carriage Agreement

Jul 6, 2005  •  Post A Comment

Verizon Communications, pressing ahead with its plan to introduce a video service to compete with cable, announced Wednesday that it has struck a carriage agreement with Turner Broadcasting System to carry several channels on the phone giant’s new video service Fios.

Under the terms of the contract, Fios will distribute TBS, TNT, CNN, Headline News, Cartoon Network, Turner Classic Movies, CNN International, CNN en Espanol, Boomerang and TNT in HD. Financial terms were not disclosed.

The deal with Turner is the latest in a series of carriage agreements Verizon has struck in recent months. Already, the company has deals with Discovery Communications, NBC Universal and Starz Encore Entertainment.

Verizon is spending billions to upgrade its telephone networks with fiber-optic technology that will be able to deliver to residential customers video, high-speed data services and telephone services starting at year-end. Verizon is betting the Fios service will blunt some of the gains made by cable operators, which are now offering phone service at the expense of traditional wireline companies such as Verizon.