| reply to morbo
Re: 679 million dollar contract said by morbo:said by MrSpock29:One has nothing at all to do with the other. I disagree. News is news, and this website's purpose is to provide the news and tie together relevant themes that exist. I sometimes wonder whether the intention is to tie news themes together or to create themes. Using the size of an unrelated government contract to support criticism of the size of the penalties in the NYC FIOS agreement is not appropriate. This website is valuable to me as an aggregator of broadband related news. I can deal with the various editorial slants.
The appropriate factors to judge the size of the penalties:
1) their proportion to the value of the franchise (to VZ)
2) the extent of competition to execute a similar franchise
3) the penalties in similar franchise agreements
I can only comment on 2) and 3) now. Not much competition because there are very few companies that could even hope to wire all of NYC for TV in six years (or even 10 years). Very few franchise agreements explicitly include large monetary penalties for failure to complete the buildout. |
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 PathfinderDazed ConfusedPremium
join:2000-03-26
Mount Vernon, NY
 ·RoadRunner Cable
 ·Verizon Online DSL
| reply to Karl Bode
said by Karl Bode:The scale of the penalties are even not remotely in line with the company's overall revenues. Verizon spends $4 million per quarter on lobbying alone. Those penalties are a gift. And they shouldn't be. The company does business in many states and that state should be the gauge not the nation. |
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 dvd536as Mr. Pink as they comePremium
join:2001-04-27
Phoenix, AZ
kudos:4 | reply to Karl Bode
said by Karl Bode:Actually it's only been mentioned twice for scale, and I can use another metric if you'd like. The amount made on just fees in the last month by the company nationally? its mind boggling. specially the "my service sucks so i gotta pay $200 penalty to get off it" fee.
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When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee |
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dvd536as Mr. Pink as they comePremium
join:2001-04-27
Phoenix, AZ
kudos:4 | reply to Karl Bode
said by Karl Bode:Those penalties are a gift. which are a pittance after all the lucrative areas are cherry picked. and the 30 million? written off as a biz loss.
typical big biz practices. * y a w n *
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When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee |
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 morboComplete Your Transaction
join:2002-01-22
00000 | reply to SD6
said by SD6:I sometimes wonder whether the intention is to tie news themes together or to create themes. Using the size of an unrelated government contract to support criticism of the size of the penalties in the NYC FIOS agreement is not appropriate. This website is valuable to me as an aggregator of broadband related news. I can deal with the various editorial slants. I'm not sure what website you're reading, but dslreports and its readership has been accused of being OVERLY supportive of Verizon, with its long-term business plan and use of future-proof technology.
Pointing out that VZ received a very large government contract is interesting both as VZ stockholder and citizen of this country. I was unaware of the news so I followed the link to learn more.
The financial penalties for Verizon for failing to meet FIOS rollout targets in NYC is 100% laughable. That amount of money is chump change, not the "large monetary penalities" you called it. |
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