Verizon Out of HD Set-Top Boxes, DVRs

Whether the cause is logistics or building demand for its FiOS TV service, Verizon Communications Inc. confirmed this afternoon that it has run out of high-definition (HD) set-top boxes and digital video recorders and can’t say when they’ll be back in stock.

A shortage of both devices, which enable customers to view and record HD content, began earlier this month and has worsened, with Verizon providing lesser standard definition (SD) versions, with free DVR use in the interim, said a spokesperson.

The challenge comes at a time when Verizon is going head-to-head with Comcast Corp. and other cable giants, as well as satellite operators DirecTV Inc. and DISH Networks Inc. in an all-out land grab for current digital TV customers, new customers and the millions of homes that will lose analog TV signals next year.

The telco TV provider recently said it surpassed one million FiOS TV customers, perhaps due to its triple-play offer of three services (Internet, digital voice and digital TV) for $99 a month for at least one year. It sweetened the deal with a promo where it offered nearly 30-inch HDTVs as an incentive.

Verizon also has been aggressively promoting FiOS TV to customers via a huge TV campaign, direct mail pieces, newspaper ads and much more. HDTVs flew off the shelves during the holidays and during the NFL regular and playoff seasons this year.

Asked if the problem arose with its STB supplier, Motorola Inc., the spokesperson was non-committal. “I think it’s more a matter of growing demand for the service.” The company would not estimate how many FiOS customers can’t get their HDTVs or speculate when it would have to cease back ordering the units.

“We’re working as quickly as we can,” said the spokesperson. “We don’t expect this to be long.” It’s unclear what lost revenue will be incurred by the unavailability of the STBs and DVRs.

In the meantime, affected customers will have to watch “regular” digital TV, with Verizon saying it will ship the HD units to them for self installation, to avoid the cost of truck rolls. FiOS offers 30 HD channels in most markets, according to the spokesperson, who didn’t estimate the cost of the shipping.

AT&T Inc. www.att.com
Comcast Corp. www.comcast.com
DirecTV Inc. www.directv.com
DISH Networks www.dish.com
Motorola Inc. www.motorola.com
Verizon Communications Inc. www.verizon.com

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