site Search:


 
   
story category
Verizon Squares Off Against County
Federal Suit Alleges Anti-Trust, Communication Violations
by mr sean Friday 30-Jun-2006 tags: business · cable · telco
Verizon Communications has filed a federal lawsuit in its bid to gain access to one Maryland county's cable market. Montgomery County has used its power to withhold a necessary franchise to force Verizon to accede to the county's demands for payments, in-kind contributions, and burdensome local regulatory authority -- all of which are illegal under federal law. The Washington Post has more...

view: topics flat text 
Post a:
RayW
Premium
join:2001-09-01
Layton, UT
kudos:1

Lawsuits....

I can see maybe Communication Laws, but Anti-Trust and Free Speech? Those boys are stretching a bit.

But then I do not work for telecom.
--
I am not lost, I find myself every time.
SD6

join:2005-03-26

Re: Lawsuits.... First Amendment

I have hopes for the first amendment argument, even if it is a stretch. It is a stretch in Montgomery County because the disputes there as I understand them center around the County's charges for installation of fiber.

The nice thing about that argument is that it would give ordinary citizens a basis to sue their local jurisdictions as well for interfering with their communications. In places like New York the fiber is already installed and localities are basically refusing to let VZ turn on the switch for video.
RayW
Premium
join:2001-09-01
Layton, UT
kudos:1

Re: Lawsuits.... First Amendment

said by SD6:

I have hopes for the first amendment argument, even if it is a stretch. It is a stretch in Montgomery County because the disputes there as I understand them center around the County's charges for installation of fiber.
I do not think the first amendment covers the allowing of a corporate entity to have carte blanche.

"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances."
Verizon is not the press, even though one could argue that you might get a paper delivery via it. They are not a religion, except for the worship of the Gods of Money/Power. They are not the people, so there is no assembly right violated. They can speak all they want, so that is not being violated (speech being loosely interpreted). They are suing, so that aspect is still there, even if they are not 'the people'.

About the only thing I can see that can be had from the First Amendment is the fact that their worship of money/power is being restricted. The religion of Corporate America.
--
I am not lost, I find myself every time.
DonLibes
Premium,ExMod 2001
join:2003-01-19

Re: Lawsuits.... First Amendment

Here's the justification Verizon gave for the First Amendment complaints:
By adding cable television to its menu of communications services, Verizon seeks to engage in a form of speech protected by the First Amendment. Local laws licensing speakers must spell out narrow, objective standards that limit the discretion of government officials in deciding whether to grant franchises and what conditions may be attached.

Montgomery’s County’s cable franchise process violates the First Amendment because it delegates to county officials discretion to approve or withhold franchises at will, to charge any fees they wish, to condition franchises on any demands they see fit, and to render decisions on any timeline they choose.

The First Amendment requires that local authorities issue franchises in a timely manner. Yet county officials told Verizon it would take until at least November 2006 to grant a franchise, even if Verizon agreed to all the county’s illegal demands – a full 18 months after Verizon first asked for a franchise.
RayW
Premium
join:2001-09-01
Layton, UT
kudos:1

Re: Lawsuits.... First Amendment

First amendment? Do you see anything in
"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances."
about franchises, corporations, and bureaucracies? Oh well. But if they applied for a franchise around April 2005 and nothing was done, then I can see a different issue.

On the other hand, we do not have the full story from the City's viewpoint either. Be interesting to see why they gave that time line. And since I do not live there, I have less than no clue what they are doing.
--
I am not lost, I find myself every time.
JohnA
Premium
join:2003-09-16
Pittsburgh, PA
said by SD6:

It is a stretch in Montgomery County because the disputes there as I understand them center around the County's charges for installation of fiber.
The dispute with the county is over the video franchise.

The dispute with Rockville is over the charges to install fiber in the ROW.

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT

Unlike the way the Death Star operates

Verizon has done things the right way with their entry into the IPTV business and with their fios rollout in general.

AT&T's tactics which apparently revolve around lawsuits and threatening to not service communities at all if they don't get their way, haven't involved negotiating franchise agreements at all because apparently they feel they are above all that.

Verizon is different, very different..and these communities should recognize and reward them for being a good corporate citizen.

In that light, I say I support their suing Montgomery County. What Verizon is trying to do is to deliver real competition to this counties citizens and apparently county officials don't understand that message yet.
--
The life you help save just might be your own Team Discovery

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
Reviews:
·Packet8
·Verizon Online DSL
·AT&T Yahoo
·Optimum Online
·STANAPHONE

Re: Unlike the way the Death Star operates

said by Rick:

Verizon is trying to do is to deliver real competition to this counties citizens and apparently county officials don't understand that message yet.
The problem is no one expected Verizon to do Fios anything.. Many other telecoms think It would of been too much money, but Verizon went ahead, and Now because they seem so lost now that it's HERE they know no other way then to Block Verizon from coming to town.

At least that's how I see it.
--
It's NOT Ni-kon It's NE-KON!




"Life is like a dogsled team. If you aren't the lead dog, the scenery never changes"


srobmw

join:2005-10-01
New Windsor, NY

VZ

Just another example of why there needs to be a national franchise policy in this country. Montgomery County is setting the perfect example of local BS politics.

achilleX4

join:2006-06-29
Damascus, MD

I want my FIOS TV!!!

Way to go Verizon! I know they are part of "corporate America" but w/ their entry into the cable tv market it just helps all of us. I live in Mont. Co. and Comcrap (aka The Commies)has a monopoly on the whole county and they know it. Another perfect example of our elected officials "going to bed" w/ a contributor (don't bite the hand that feeds you is their motto). We need competition and choices...that what America is all about...my goodness just go to a grocery store and see how many different types of soup, deodorant, dog food they offer you. I can't wait till November for the elections and get rid of all these incumbents!!!
serg_leo

join:2001-11-28
Germantown, MD

Looking forward for FiOS TV

I'm sick from Comcast. I used to pay $140 per month for Internet and Cable. Now I got FiOS internet with better upload speed and I'm looking forward for FiOS TV. I terminated my contract with Comcrap, no more money for them.
caco
Premium
join:2005-03-10
Whittier, AK

65 channels of public access

"Verizon alleged that the county illegally made demands including the right to collect fees on phone and high-speed Internet services, that the company set aside about 65 channels for public, educational and government programming and that it pay additional cash."

65 channels ?
chemaupr

join:2005-06-06
Alexandria, VA

Re: 65 channels of public access

LOL!!! one for each highschool,one for each county department and we still have like 20 to speare. If that is true what in the h*** they were thinking?

calvoiper

join:2003-03-31
Belvedere Tiburon, CA

Re: 65 channels of public access

One for each department? Hah.

More like one for each elected official, from US Senator down through County supervisors, District Attorneys, Clerks, Treasurers, Deed Recorders, Township Supervisors, and Dogcatchers.

calvoiper
--
VoIP--the death knell of remaining voice monopolies!

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:1
65 channels is just absurd.

Sounds like they made Verizon an offer they hoped they would refuse.
RayW
Premium
join:2001-09-01
Layton, UT
kudos:1
How many channels does digital TV support? I see ads for 1000 channels of movies. 65 may be a lot for the VHF/UHF broadcast and old fashion cable, but with fibre and digital it may be time to rethink what a lot is.

Anyone have a definitive number of channels that fibre and digital will max out on?
--
I am not lost, I find myself every time.

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
Reviews:
·Verizon FiOS

Re: 65 channels of public access

I agree. We're probably going to sign a 15 year franchise, which means we'll be limited to 65 channels through ~2021 at the earliest.

Will 65 channels be enough then? Who knows?

I don't see why Verizon would object to this. VZ only has to air the number of channels we have content for. If we have content for 65 channels, why wouldn't VZ want to air them? Many of our current PEGs have won awards. They're a real community benefit.

cableties
Premium
join:2005-01-27
Reviews:
·Verizon FiOS
The Local Plow channel?
How about, Sheriff's Day channel?

65...jeez.
Let's hear accountability from Maryland's bureaucracy on details of where the money went from the cable company franchise. Oh, someones pockets? I see...

Why not just do a 50-50? Cable gets a reduction and phone picks up the difference.

wmcbrine
213 251 145 96

join:2002-12-30
Laurel, MD
Here's my take on the "65 channels":

»Re: Verizon Goes to Court to bring FIOS TV to Mont County MD
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
65 DIGITAL CHANNELS, thats 3-6 analogs AFAIK, Verizon probably reworded it to make seem much bigger and to get back at the county. I think the county demanded analog channels, not digitals, but Verizon spinned the PR.

Woof Woof
I Miss Brother Iz

join:2004-09-01
Keller, TX

1 edit

Re: 65 channels of public access

Verizon broadcasts local channels and public access channels in BOTH analog and digital. They have intentially limited the number of analog channels so that there is more space for digital SD and HDTV. I'm sure the county would REQUIRE that verizon broadcast all 65 in analog so that people can get them without a box (the lowest price point). Problem is, there is no way in hell Vz is going to devote that much bandwidth to analog channels.

What these idiots don't realize is that Verizon is offering a LOT more than what the Federal franchise agreement will offer. If they don't accept reasonable concessions, they will get far less.

They are only gonna screw themselves.

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD

1 edit

Re: 65 channels of public access

As unreasonable as the county can be sometimes, I seriously doubt they'd require 65 analog PEGs. We do have larger than average PEG requirements though. I hope Verizon embraces this.

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
Reviews:
·Verizon FiOS

Re: 65 channels of public access

I just found Verizon's filing:
The filing has now been posted on Verizon's website:
»www22.verizon.com/about/communit···ling.pdf

quote:
...The county required that Verizon make available to the County 78 megahertz of channel capacity, or its equivalent, for PEG programming. This amount of capacity translates into approximately 13 analog channels, and if standard compression technology is used, 65 digital channels... (pdf page 34)
Earlier in the document (pdf page 8) Verizon touts the "superior capabilities" of their system vs the alternative. Verizon's objection to providing what the alternative systems already deliver makes this claim seem like a joke.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

1 edit

This Madness Has to End Now...

Why is it that some local governments insist on screwing over their constituents like this?

I thought the Montgomery County Government would be somewhat smarter than those small towns who are also blocking such developments. It's really sad that we're now going to be put into the same "third world" of broadband options that now currently exists in the same jurisdictions that insist on fighting AT&T.

I hope Verizon wins this one.
--
Tancredo 2008!

scrummie02
Bentley
Premium
join:2004-04-16
Arlington, VA
Reviews:
·Comcast

Re: This Madness Has to End Now...

who knows...they're politicians, they have children to feed and accepting bribes from the incumbent businesses in the county allow them to buy their BMW X5's.

The solution is simple...people should take note of this behavior and vote their local asshats outta office...but alas, it takes research, time and effort to track what your politicians are doing and most people don't want to do that. To be realistic most don't even vote..yet complain about the situation.

As far as I can see though, this is typical behavior for Maryland, which is why I chose to live in Virginia. The District of Communism is the same way, then they wonder why FIOS rollout is happening so well in Virginia.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: This Madness Has to End Now...

said by scrummie02:

As far as I can see though, this is typical behavior for Maryland, which is why I chose to live in Virginia.
It appears though that the rest of Maryland is doing the right thing and allowing Verizon to deploy FIOS. I plan to move out to one of the many hickish parts of Maryland by the end of this year, it would be hilarious if FIOS was deployed there before it is deployed here
--
Tancredo 2008!

wmcbrine
213 251 145 96

join:2002-12-30
Laurel, MD
said by pnh102:

Why is it that some local governments insist on screwing over their constituents like this?
Assuming they're not just in the pockets of the incumbent cable providers: They probably believe they're looking out for their constituents, not screwing them over. They may even be justified in that belief. People here tend to take a narrow view -- i.e., "I want an alternative to Comcast" -- without considering other aspects of the problem. It's possible that some local governments are also taking narrow views... then again, maybe their views are just more balanced.

BTW, it would be foolish to take Verizon's word for anything. Remember, these guys are expert liars (see telco front site handsoff.org for examples).

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: This Madness Has to End Now...

said by wmcbrine:

BTW, it would be foolish to take Verizon's word for anything. Remember, these guys are expert liars (see telco front site handsoff.org for examples).
I'm certainly not suggesting that Verizon is a bunch of saints either. I just think that any government which is opposing their deployments should do the right thing and step aside, let Verizon do what it wants to do, and then the people will be free to decide what is a better option.
--
Tancredo 2008!

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
Reviews:
·Verizon FiOS
said by pnh102:

Why is it that some local governments insist on screwing over their constituents like this?
Who are Duncan's constituents?

If Comcast is his major constituent, then he's not screwing them at all. In fact, he would be serving his constituent very well with this approach.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: This Madness Has to End Now...

said by JTRockville:

If Comcast is his major constituent, then he's not screwing them at all. In fact, he would be serving his constituent very well with this approach.
I'm still surprised at how much Comcast owns Maryland Government, considering they were headquartered near where I used to live. Case in point, Comcast had to put up a fight to get the Pennsylvania State Government to pay for part of its tower in downtown Philadelphia.

Heck... why doesn't Comcast just move the whole company down here? LOL.
--
Tancredo 2008!

JTRockville
Data Ho
Premium,MVM
join:2002-01-28
Rockville, MD
Reviews:
·Verizon FiOS

Re: This Madness Has to End Now...

Good question. I'm sure we'd be willing to donate some prime real estate to them. We'd probably even beat the deal they got from PA. The site of the Walter Reed Army Hospital should be up for grabs soon. Think that would do?
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

Wasted resources?

Wouldn't it be better to deploy in counties/towns/cities which are more receptive to video franchises? It seems like a waste of resources to begin suing counties. I'd strip all VZ broadband options out of the county and move it elsewhere! They have more to LOSE than GAIN in this exchange. Customers lose their competitive option and they only have county officials to thank. It cuts both ways, but I'm annoyed that resoures are being wasted on a little crap place in md, while there are places WITH certian 'township' franchises which are not 100% fully deployed! Duh! seems like easy pickins' to me--to make full use out of the franchise rights you already have by making 100% of the territories accessable markets!

I bet lots of FiOS equipment/crews are sitting idle in MD, while it could be put to better use elsewhere.
SD6

join:2005-03-26

Re: Wasted resources?

If you have a franchise in your town, it will be deployed (unless it is smaller than a single CO footprint). Many townships in NY are not receptive to franchises, or are too small to be able to negotiate with Verizon.
JohnA
Premium
join:2003-09-16
Pittsburgh, PA

Re: Wasted resources?

said by SD6:

If you have a franchise in your town, it will be deployed (unless it is smaller than a single CO footprint). Many townships in NY are not receptive to franchises, or are too small to be able to negotiate with Verizon.
My CO has 5 township units in it, and the other half of the CO is the city of Pittsburgh. All have cable franchises, and all are capable of negotiating with Verizon, individually or as a group. There is no governmental unit too small to negotiate a franchise with Verizon.
SD6

join:2005-03-26

Re: Wasted resources?

I will be more precise. Most small townships do not have anyone on staff who can competently negotiate a 15 yr cable franchise agreement w/ Verizon.

jbgroup1
Non Conformist
Premium
join:2000-05-04
Dayton, MD
Reviews:
·Verizon FiOS
No, Montgomery County is the richest and most populous county in the state of Maryland not just "a little crap place". It has about as many people as the county in which you live (Nassau, NY). If they don't get Montgomery County then there is no point being in Maryland.

FiOS crews aren't idle either. They are working hard in my area to wire it for FiOS.
--
This post sponsored by ME.. A pleasure to read

tsu9

join:2001-08-17
Wheeling, IL

Obvious.

[...]burdensome local regulatory authority[...]

Yeah, rules suck.
madrhino

join:2004-07-03

Re: Obvious.

Comcast bought the county already and it's theirs.Verizon will just have to deal with it.
NeedFOSpeed

join:2004-01-20
Silver Spring, MD

I hate Comcast

I also live in Mont Gum County. I am stuck with Comcrap and I fully support Verizon in this law suit. In silver spring I am forced to use Comcasts terrible service. As soon as FIOS is ready I am leaving Comcrap.

AnnaS8

join:2005-05-26
Annapolis, MD

Smooth so far in Anne Arundel County

I don't see what the problem is with Montgomery County. I don't know why they can't get it together. Here in AA County they have put demands on Verizon and even expanded their coverage area through most of the county. They even told Verizon that they want there own accountants going over their books to make sure the county is getting their money. LOL Verizon seems to be ok with it. Coming up in July is when the county will vote on it. I really hope it goes through cuz I am sick of Comcast's high prices.
cbrain

join:2000-05-21
Silver Spring, MD
Reviews:
·Future Nine Corp..
·Google Voice
·Verizon FiOS
·DSL EXTREME

Re: Smooth so far in Anne Arundel County

said by AnnaS8:

I don't see what the problem is with Montgomery County. I don't know why they can't get it together. Here in AA County they have put demands on Verizon and even expanded their coverage area through most of the county. They even told Verizon that they want there own accountants going over their books to make sure the county is getting their money....
Tradition!

Our leaders have a 20 year history of seeing to it we have poor cable service from politically connected people. They boast about being a national leader in cable administration. Comcast has been the best and you can read about how well they do for us right here in the Comcast forum.

How do our tax increases compare to the cable rate hikes?
dariena

join:2005-04-24
Germantown, MD

So this is why..

I don't have FIOS TV to go along with my FIOS internet service yet... grrr come on Mont. County... get off your a$$es!

FiL
Premium
join:2005-08-16
Silver Spring, MD

3 edits

yea i support the assault

on Mo County's politricking with the cable/fiber service...
but the county's top 10, i think prolly #3 on "the best" list...

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Verizon will win: in court or with national franchise

Verizon will win this battle. Either in court or when the Congress passes the new telecom law that establishes national franchise rules. Then the local gov't will get 5% of video revenues and nothing else.
--
--
Join Red Room Forum
BLOG tkjunkmail.blogspot.com
My Web Page

See 10 replies to this post

jslik
That just happened
Premium
join:2006-03-17

Timing?

The timing here seems rather coincidental, doesn't it? Just as the US Senate is considering a national franchising bill a county "next door" gets sued for being a "barrier to entry".

Yes, no connection there, I'm sure.

See 7 replies to this post

Sunday, 03-Jun 19:53:15 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online © 1999-2012 dslreports.com.