• by David Goetzl  @dgoetzl, December 6, 2007

A top Verizon executive said Wednesday he has doubts about consumer tolerance for advertising on mobile devices and the company will proceed slowly in that area--if it enters at all.

"I will tell you that this is one area that we will not be first to market," said COO Denny Strigl at an investor conference.

Strigl said if Verizon, which operates a mobile TV service as part of Verizon Wireless, opts to make a strong play in the advertising space, he strongly favors a system where consumers have to "opt in."

"My concern is what do customers really want," he said.

Nonetheless, he said he expects competitors to move into the area more aggressively, although he has doubts about the revenue opportunities. "Is it something that the industry will do? I'm certain that it is. ... How big a market does this create? I don't know ... we'll just have to wait and see," he said.

Separately, Strigl said that Verizon's expanding telco TV offering--increasingly a competitor to cable operators such as Cablevision and Comcast, and in more than 717,000 homes--will eventually move from availability in the small communities around cities such as Boston, Philadelphia and New York and into the center cities.

"The issue isn't if we go there--we are convinced that the real question is when," he said of the FiOS offering.

Strigl said Verizon is well-equipped to surmount hurdles such as negotiations with regulators and municipalities, as well as technical issues and roadblocks involving wiring apartment buildings.

"The gating factor for us is a lengthy process with each municipality--some longer than others and we'll get through it ... When we finally do turn on an island of Manhattan, I think we've got some very good upside," he said.