Wednesday, Nov. 21, 2007

New digital TV deal could be available by spring

Cavalier Telephone wants to provide service to 15 municipalities and other parts of county

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Cavalier Telephone Co. is pursuing franchise talks that could result in a new digital television option for 15 municipalities and parts of the county, including Germantown, Bethesda and Silver Spring.

Congress has mandated a nationwide conversion to digital television by 2009 and Cavalier is hoping to secure its piece of the market. The small company, based in Richmond, Va., will broadcast digital television signals and run high-speed DSL Internet and telephone services through existing copper telephone lines leased from Verizon, said Cavalier spokesman Ben Halliwell. Installation, which could be available by spring in some areas, simply means adding or adjusting an ethernet connection with a little extra wiring installed by a technician.

The county executive last week held a public hearing to discuss bringing digital television and other Cavalier services to eligible areas. In addition to areas like Germantown, Montgomery Village, Olney, Bethesda and Silver Spring, 14 municipalities under the county’s franchising network are being considered: Chevy Chase Village, Chevy Chase Section 3, Town of Chevy Chase, Chevy Chase Section 5, Chevy Chase View, Garrett Park, Glen Echo, Kensington, North Chevy Chase, Rockville, Somerset, Takoma Park, Washington Grove and Village of Martin’s Additions.

Gaithersburg, which has its own franchising authority, has already received a draft proposal from Cavalier, said Tony Tomasello, an assistant city manager.

He has been in negotiations with the company for the last month and once comfortable, the city will evaluate whether the company is legally, technically and financially qualified to build out a system in Gaithersburg, he said. Service in Gaithersburg by March is possible.

As for the other areas, staff is preparing recommendations for consideration by the county executive and County Council.

Until now Montgomery County has received cable services from Comcast, Verizon and RCN.

Cavalier aims to undercut the larger companies’ prices, especially as they end their one-year promotions, said Halliwell, who called Cavalier ‘‘David to the Comcast Goliath.”

Craig Pizer, Cavalier’s vice president of business development, said the company offers video-on-demand and pay-per-view, as well as 159 standard cable channels. Its bundled package of three services — telephone, high-speed DSL Internet and digital television — costs $99.95; a promotional package runs $79.95 for one year, he said.

For $64.95 customers get digital television with either high-speed Internet or telephone services, Pizer said.

‘‘I think that they are trying to aim their product as delivering low-cost without all the bells and whistles,” said Jane Lawton, the county’s cable administrator. ‘‘Right now if you take a package from the others, you might get in for a bargain bundle, but it only lasts for one year or two years then it goes up to $140 to $170.... Everybody has just raised their rates.” She also noted that Cavalier has an easy entry into the county market since it is leasing existing phone lines.

‘‘The other three companies had to come in and string their own lines,” she said. ‘‘This is an interesting provider.”

Verizon spokeswoman Christy Reap does not see a threat.

‘‘Verizon has been competing in Montgomery County for just over a year now and we’re very happy with our results,” she said. ‘‘Montgomery County residents benefit from competition.”

Asked about areas such as Damascus, Clarksburg, Boyds, Laytonsville, Barnesville, Brookeville and Poolesville, Pizer pointed to limits.

If an area isn’t already highlighted on a map of Cavalier service areas that can be viewed on the county’s Web site, the Cavalier service isn’t likely, at least in the near future, he said.

‘‘If it’s not included ... either it’s in an area where don’t have equipment today, or it’s an in area where we have equipment but they may be too far from the wire center for us to reach them with their service,” Pizer said.

‘‘It’s a very imprecise footprint,” Lawton said. ‘‘It is not in places where Cavalier doesn’t have equipment in Verizon offices.”

Every neighborhood or home near a wire center would need to be tested to see if it could receive broadcast signals, she said. The signals only travel several miles, so some areas will only get partial coverage.

Cavalier has reached an agreement with Anne Arundel County, and is reaching out to Howard, Prince George’s and Baltimore counties, the City of Baltimore and parts of Northern Virginia, Pizer said.

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