these regulations are tied to the municipalities in which they serve..
if the municpal government doesn't want Verizon to even replace copper with fiber.. they have EVERY RIGHT to make that case.. replacing copper with vastly inferior wirless and higher prices.. was just ASKING for municipalities to assert their rights and complain to the public utility commission which enforces state law.
fire island and zones which are troubled flooding spots are a unique case. after a while, if the infrastructure isn't sufficiently protected in a way it won't have to be rebuilt every new storm that comes through there is sufficient rights to make changes. however, Verizon can't argue every zone which had infrastructure wiped out is a problem zone and this is where they will run afoul of regulations.
$100k per day could help build MUNI fiber projects quite quickly..
Very few, if ANY municipalities have given up their rights for Verizon to remove the copper network so therefore it must be maintained side-by-side with any fiber installs. Verizon is accelerating fiber builds along the Brooklyn shorelines and it remains to be seen whether they'll try to remove the copper lines. Most of the problem lies in southern Manhattan and parts of New Jersey..