Verizon's left-cross: Fiber optic broadband

What's more, Verizon's FiOS will also offer those residents with cable TV service another plum: Fiber optic television. In some U.S. markets this will give consumers their first line-based competition and alternate service provider for cable television.

Further, most economists would argue that, with few exceptions, monopolies, even if publicly regulated, do not represent the market-based system at its best, from a consumer standpoint, and the cable TV sector has done little to undermine this thesis. Inadequate customer service and large fee increases have been among the complaints voiced by consumers, who had few other service options, particularly if their house or apartment could not accommodate satellite TV service. To be sure, the free enterprise system is characterized by fits and starts, but in general, when competition is present, consumers benefit with improved services and products and more-attentive suppliers; single-source providers tend to delay this process.

Now consumers will have a viable choice with VZ's fiber optic system, and not only for cable but for high-speed Internet service as well.

The cable sector may offer a service response to a telecom-based fiber optic network. But that response may be a considerable time away, as they may need a little time to wake up, operationally-speaking, from that left-cross that put them on the mat.

Investment Category: Verizon, a major telecom operator, is investing heavily in next-generation broadband service to become a force in broadband TV and Internet services. A low-risk stock, this multi-billion-dollar, capital-intensive build out will nevertheless depress earnings for several years. Hence, investors seeking quick, large gains should not purchase VZ. The stock remains a prudent play, however, for patient investors. (Verizon's stock closed Friday at $38.41, down 3 cents, while Cablevision closed at $29.27 down 11 cents, and Comcast finished at $27.13 down 32 cents.)