Verizon Bringing Speedy Internet To More Homes; It's unclear, analysts say, if firm will also offer TV via its DSL or fiber lines.(INTERNET & TECHNOLOGY)

Byline: REINHARDT KRAUSE

Verizon Communications Inc.'s redrawn road map for upgrading its local phone network isn't the mega-makeover it may seem. Verizon, the biggest local phone company, this year plans to bring speedy Internet access to more residential customers via digital subscriber line hookups. But it's still not committed to delivering TV-like video services to homes via fiber-optic lines. Verizon says speedy DSL hookups will be available to 80% of its residential customers at the end of 2003.

That's up from 62% on Dec. 31. After falling behind cable TV companies in providing speedy Net access, Verizon and other local Bells are playing catch-up. They're upgrading old copper networks with DSL technology. But going one step further -- replacing copper wires with fiber-optic links similar to what cable TV firms use -- would be a very different business proposition for Verizon. Analysts say it's costly and makes sense only if Verizon plans to sell TV services along with Net access and voice calls.

Despite the growing threat of cable competition, it's doubtful Verizon is ready to blaze the fiber trail to homes, says Barry Moon, analyst at market researcher RHK Inc.

"The real questions are whether the regional Bells, like Verizon, want to be in the TV business and whether the triple play (Net access, video and voice ) is necessary to be successful," Moon said. "Television is a tough business to be in."

Verizon touted its network upgrade plans in a mid-March conference call with analysts. By year-end, 46 million lines going into homes should be DSL ready, Verizon says.

Larry Babbio, Verizon's president, told analysts that "while we expect to deliver broadband using DSL over (local) loops for some time to come, these loops will eventually be replaced by fiber-optic technology."