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NYC Mayor Says He'll Push Verizon, Time Warner Cable Harder
by Karl Bode 08:08AM Tuesday May 20 2014
Back in 2008 Verizon negotiated a closed-door agreement with then NYC mayor Mike Bloomberg, one Verizon strongly suggested would result in Verizon offering FiOS to 100% of the city by 2014 -- sort of. Fine print in the deal allowed Verizon to back away from that promise if they pay a few small fines and/or aren't seeing the kind of TV subscriber uptake they'd like. One of the few critics of this was then Public Advocate Bill de Blasio, who is now Mayor of New York City.

Obviously distracted with other things during his initial time in office, de Blasio has finally as expected shifted his eyes toward Verizon, complaining recently about Verizon's apparent lag in FiOS promises and the general lack of broadband competition in NYC, which makes getting access to broadband particularly hard on the poor. This week was "Internet week" here in NYC, and De Blaggio again fired a warning shot over the bow of city incumbents:
quote:
"We're going to introduce more competition into the process, which is desperately needed," the mayor said. "We're going to reexamine our franchise agreements—including with Verizon Fios and Time Warner Cable—to hold them accountable for providing the kind of service they're obligated to."
Granted talk is cheap, but government actually holding companies accountable for what they promise to do would be a unique and novel tactic in the industry.

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Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1
Reviews:
·Time Warner Cable

4 edits

leave TWCable alone

TWCable Maxx is in the process of doing a free tripling the broadband speeds by the end of 2014, so most will forgive a modest rate hike. »Original TWC MAXX thread - now MAXX General Discussion The linked article makes no mention of this, which only helps Verizon get off NYC's hook by making TWCable a distraction.

At issue here is Verizon contracting with NYC to covering it with FiOS by end of 2014, and conceding they won't make it with little or no consequence at all.

Verizon likes to blame it on Hurricane Sandy or having to actually compete (and suffer less profit potential) with other last mile providers, when in fact they spent most of the last 3 years building up their more profitable Cellular wireless networks instead.

Thus the only way NYC can really "push" Verizon is to somehow make their cellular network temporarily less profitable, removing all of Verizon FiOS right of way excuses, and in doing so forcing the only other way Verizon can make money off of NY'Kers; by finishing their FiOS build out commitment here.

NYC33

@66.108.52.x

Re: leave TWCable alone

I never bought into the verizon will wire nyc by 2014. We are in 2014 and I can tell that only 35% of all new york city buildings are wired with Fios. The only reason that is around that level is because the city has been building so many new condominiums thus allowing verizon to wire those buildings before new tenants move in. Verizon will never wire NYC with fios the way the franchise agreement state.

Deblasio should have a meeting with Mr.Wireless Lowell McAdams and tell him if you will not wire my city I will strip your company of the broadband and tv franchise agreement.

mchale

@95.154.230.x

Re: leave TWCable alone

you must not get out much NYC33.....the number is way higher than 35%. a survey of your block is hardly indicative of whats going on throughout the city. 95% of staten island was wired for fios before verizon even got a NYC franchise. that alone surpasses the silly 35% figure you threw out.
ricklerre

join:2009-06-22
Brooklyn, NY

Re: leave TWCable alone

Staten Island only has 5% of the city's residents. 95% of 5% is less than 35%
Kalmus

join:2012-11-21
Boston, MA
If you reviewed the VZ agreement with NYC (it is a public document), you would see that VZ did not commit to wire all buildings by 2014. It agreed to "pass" all residential buildings by that date. Whether VZ must actually wire a residential building is a function of whether it receives a request for service and whether the property owner grants it access.

Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1
Reviews:
·Time Warner Cable

Re: leave TWCable alone

you make an important distinction, however Verizon has still gamed the system. my 100 unit Coop is a perfect example. my Coop and several other buildings on the same block under the same property management company have requested FiOS service and granted access to our buildings for the past 3 years, ever since FiOS layered trunk fiber down 108th Street and Queens Blvd one short block away on either side of use here on Yellowstone Blvd (about 500' away). 108th are houses, Queens Blvd is Commercial, so my Coop is sandwiched between two types of end users.

we waited 3 years for Verizon to "pass" along our building, and they still have not brought a branch fiber on to our property and into our basement wiring distribution area. in the press they blame it on landlords and cable tray access, which I know first hand from my Coop to be false, and they use fiber tape here so hallway wiring is not at issue either. the real issue for Verizon is I live in a well served TWCable area, so Verizon knows they won't get the kind of penetration they need to make buildings like mine profitable enough to finally light up.

this is why the only way Da'Blazio can "push" Verizon is to hit them where it hurts - profits - by somehow making wireless less profitable so fiber will have to be expanded in order for Verizon to make any money here.

your name

@50.182.54.x

Re: leave TWCable alone

said by Packeteers:

this is why the only way Da'Blazio can "push" Verizon is to hit them where it hurts - profits - by somehow making wireless less profitable so fiber will have to be expanded in order for Verizon to make any money here.

And how will he do that? His power over wireless access is practically nil. Making it difficult for tower placement is his only leverage. And even that is limited by Federal rules.

Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1

Re: leave TWCable alone

I honestly don't know. what I do know is; as long as you leave dessert out on the table, your kids won't finish their vegetables.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS
The sad part is any "FINES" will end up being passed along to the consumer in below the line fees. There already is a $1 municipal construction charge for NYC residents buying ANY telecom service (be it phone or internet). The best thing would be to let RCN, Google or another competitor do overlays in NYC. They can start where Verizon REFUSED to build. These companies threw down 10s of billions of dollars to bet on wireless... now they have to live with that decision. I don't see how profits will expand in wireless. If anything they will shrink over the next 10 years as that market saturates. Vodafone knew this, and that's why they accepted 140+ billion on a buyout. The very same amount that could have built NYC's FTTP network and beyond shutting out Google fiber for sure. Now, its more likely Verizon will see a competitor come in down the line..
DeBlasio has little leverage to do much. The primary evidence is you see how far TAXING wall street rich went paying for school pre-k. So, getting Verizon to honor a commitment is like forcing Comcast away from their broadband commoditization plans.. The best remedy is to take their market away from them by putting new competitors on the block, literally.

Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1
Reviews:
·Time Warner Cable

Re: leave TWCable alone

NYC already gave Verizon a sweetheart deal, and look where it got them.
RCN and Google won't build without the likelihood of 50% penetration in an underserved area, so they won't go up against a well built under utilized TWCable last mile either.
Spanking Verizon with fines and litigation may be the only way to teach providers that any future deals with NYC has teeth and consequences should you neglect them - even if it means we all pay a bit more. NYC wants wifi and charging stations contracted for it's parks, streets, phone booths, subway and vehicle tunnels, so Verizon has to be the last time we can afford to all get screwed.
tmc8080

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

Re: leave TWCable alone

A refusal to build & compete is the barrier and not any other circumstance. If cable companies can deploy a docsis 3.X network here.. then Verizon can transition the copper network as they were supposed to. RCN would never get 50% of a market anywhere, despite their claims at inception of the company to revolutionizing broadband. Google has the money and power to build a network in NYC while making a horse race out of competition instead of a mockery. Will they? Time will tell. If Bloomberg signed iron clad exclusivity for NYC, then those contracts need to be invalidated--I think that's not the case. NO company has over 50% of the marketplace (BROADBAND ONLY) in any municipality, except maybe where there is a Comcast/AT&T lob-sided market where AT&T won't deploy a fiber network. Here, in NYC it's almost the same thing even if you have fiber available.. what good is it if the speeds don't evolve into the hundreds of megabits towards gigabit.. or consumers can't afford the rates? 6 of this, 1/2 dozen of the other. IMO, charging hundreds for handfuls of wireless data is pathetic and won't reclaim 140 billion dollars any time soon. If anything it saturates the wireless market instead of developing it. Creating a tiered scale of faster FIOS speeds is the cheaper solution towards a gigabit since consumers have spoken when it comes to getting more video over IP.
elefante72

join:2010-12-03
East Amherst, NY
When you say "well served" I assume it's the typical kickbacks and coop bulk pricing.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

1 edit
said by Packeteers:

...the real issue for Verizon is I live in a well served TWCable area, so Verizon knows they won't get the kind of penetration they need to make buildings like mine profitable enough to finally light up.

Yet, somehow you don't see that as a substantial barrier to deployment.
And your solution is to attack/remove service from those they can profitably serve?

You are the poster child for the death of FiOS type deployments.

Packeteers
Premium
join:2005-06-18
Forest Hills, NY
kudos:1
Reviews:
·Time Warner Cable

4 edits

Re: leave TWCable alone

tshirt - ISP's are given millions by municipalities to deploy in low profit rural areas as part of the deal to deploy in fat profit urban areas. more often than not, they gladly take such handouts, while not lighting up those rural zones (Upstate NY).
NYC similarly gave Verizon a competitive advantage to cover all of NYC, both the profit rich and low profit competitive areas. having to actually compete in certain areas was the price Verizon was to pay for NOT having to compete in others.

You are the poster child for all short sighted conservative thinkers

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:5
Reviews:
·Comcast

Re: leave TWCable alone

said by Packeteers:

ISP's are given millions by municipalities to deploy in low profit...

SOME ISP's (Telco's generally)

BUT whatever was in the past/poorly monitored/unenforceable political choices, The question today is why would a business proceed to rollout an unprofitable product...not one they can see a future in but one in their opinion (and from your previous post, your's too.) will lose money now and forever, while sucking up resources better spent on something they believe will more than pay for itself?
Most businesses either exit that product line (even if the shutdown requires a big charge off) or cease business altogether. Verizon is doing the latter, a piece at a time, hoping to be reborn as a wireless star.
In fact the urban areas may have the density but regulators and building owner have learn to be very good at extracting the profit, to the point of making it a non-starter.

They learned (heavily regulated) FTTH is too expensive, and cable is winning the FTTC race

battleop

join:2005-09-28
00000
"We are in 2014 and I can tell that only 35% of all new york city buildings are wired with Fios."

Source?
--
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.
shmerl

join:2013-10-21

Re: leave TWCable alone

I'm not sure about entire city, but in my area there are huge gaps in FiOS availability. You can find like one block in a 30 may be (and I don't see any logic or patterns in that deployment). There is a rather easy way to check it. Pick any address (for example on Google maps) and try availability here: »www.verizon.com/residential/fios···lity.htm

rit56

join:2000-12-01
New York, NY
" never bought into the verizon will wire nyc by 2014. We are in 2014 and I can tell that only 35% of all new york city buildings are wired with Fios. "
This is not true. I've said this many times here. A building on my block was demolished and rebuilt. The landlord made a deal with Verizon and they wired the building with FIOS. This was 3 or 4 years ago. Verizon despite repeated calls has not wired forget about any other building, not even one apartment on the street and according to Verizon my block is wired. They have no intention of wiring anything. The 35% number is completely wrong and inflated by a wide margin.
bugabuga

join:2004-06-10
Austin, TX
But but but... TWCable in Manhattan is soooo crappy in so many places Outages every week, speeds jumping up and down all over the place. Unless they fix all that, increasing speeds won't solve most of the problems
--
Hyperom: Rants about life, politics, technology

Probitas

@206.248.154.x

Why do people keep referring to wireless services as being wired?

They aren't wired except after the tower.

xpbx
220, 221, Whatever It Takes.
Premium
join:2000-11-08

this is what happens

when an immovable object meets an unopposable force.