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Verizon sees strong demand for 500 GB DVR

January 23, 2012 — 2:18pm ET | By Steve Donohue

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Verizon (NYSE: VZ) may be struggling to meet demand for its latest high-definition DVR, a 500 GB model that doubles the storage capacity of the DVR it began to offer FiOS TV subscribers in 2005.

Motorola's 7232 HD DVR

Verizon began to offer its FiOS TV subscribers the Motorola Mobility (NYSE: MMI) 7232 HD DVR last year. The DVR is smaller than previous models that it has offered FiOS customers, including the Motorola 7216 HD DVR.

While Verizon operates retail stores for its FiOS products in each market where it offers service, the company doesn't stock the new Motorola DVRs in any of the stores. Subscribers can only receive the new DVR by requesting them online. The company is also charging subscribers a one-time fee of $40 for the new DVR.

"This has been the only way for existing customers to get them, since we started deployment. New customers may also get them, depending on inventory in the local office. Reps are not able to offer a specific DVR, which is why they refer customers to the website," spokeswoman Heather Willner told FierceCable.

Two FiOS customer service representatives told this reporter that the company has does not have enough of the 500-GB set-tops in stock to meet requests for the set-top. But Willner said that Verizon does not have a shortage of 500-GB HD DVRs. While it is more challenging for FiOS subscribers to get its new DVR than standard equipment that can be obtained through Verizon retail stores or from FiOS field technicians -- Willner noted that most of Verizon's competitors don't offer options for DVR upgrades.

Verizon and other pay TV distributors are looking to deploy DVRs that offer additional storage capacity to compete with new products from TiVo (Nasdaq: TIVO) and Dish Network (Nasdaq: DISH), which are marketing DVRs containing 2 TB of storage to their subscribers.