Strange bedfellows and natural enemies

It was the second time in four months that a large telco's CEO stood on a stage in Las Vegas and gave a keynote address expounding on the ways the industry will change the way people engage in that all-American exploit of TV viewing.

This week, Verizon CEO Ivan Seidenberg told the assembled masses at the National Association of Broadcasters convention that telcos and broadcasters are natural partners as part of the effort to bring advanced digital technologies to local customers. Citing Verizon Wireless' launch of V Cast as an example, Seidenberg said drawing the two industries together will bring about all forms of exciting content. And with that, it's hard to disagree, but natural partners? Next thing you know, some executive will claim cats and dogs will enjoy each other's company, Auburn and Alabama fans should unite for a rousing rendition of Kumbaya, and carriers should be more sympathetic to their vendors.

This is not a marriage made in heaven but more akin to the scores of European royal unions--one of convenience and need.

Telcos need broadcasters more than vice versa. Broadcasters may see telcos as a new conduit for content but until there's a critical mass of users, they aren't likely to upset their long-time cable partners. There also is a risk that broadcasters are simply playing telcos as pawns to threaten the cable operators to whom they've been married for several decades. Sitting on the side observing and taking notes, of course, are vendors, which all claim to be "agnostic" but tend to take sides anyway.

At the early stage of the game, it makes sense for telcos to play nice with broadcasters and pretend there's a natural alliance. Ultimately, however, carriers must begin looking beyond the traditional content providers if they truly intend to offer something unique.

E-mail me at mailto:vvittore@primediabusiness.com.