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In return, Bezeq will be allowed to compete with the cable concerns for television services.
Both AT&T and BellSouth are building fast fibre-optic networks to pave the way for television services, and their plans fit together well.
They also say that their system can be used with a hybrid of analog and digital equipment for television services that have both kinds of equipment as broadcasters make the transition from one to the other.
With more usage comes the need for even more bandwidth: telcos AT&T and Verizon Communications are investing billions of dollars to upgrade their slower DSL networks, bringing super-fast, fiber-optic lines closer to their customers and increasing available bandwidth for television services and faster Web downloads.
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The number of Americans who pay for television service has dropped for the second quarter in a row, the media research firm SNL Kagan said on Wednesday.
The desperation stems from the persistent fear that subscribers will forgo paying for television service and turn to Internet alternatives instead.
Back in the olden days of cable we were forced to shell out a relatively standard $140 a month, for television service alone.
Satellite carriers continue to sign up households for television service, but they have not made much of a dent in the consumer high-speed Internet market.
Fox is likely to receive a sizeable increase for retransmission, and Cablevision will probably pass that fee along to subscribers, even though the monthly price for television service is already prompting some consumers to cut the cord.
Most households today have only a few choices for television service: whatever cable company serves their local area, be it Comcast, Time Warner Cable or others, and two satellite providers, DirecTV and Dish Network.
For instance, Time Warner Cable charges $49.95 for unlimited local and long-distance calling in Portland, Me., but that price is $39.95 if the subscriber already uses Time Warner for television service.
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