Senator Kohl Slams Verizon's Forced DSL/Landline Bundling
Urges FCC, DOJ to Scrutinize Cable Deal Carefully
Senator Herb Kohl is the latest politician to express concerns about the anti-competitive impact of Verizon's massive new bundling and marketing arrangement with the cable industry
. In a letter
(pdf) from Kohl sent to the Justice Department and the FCC, the Senator expresses concern about confining too much spectrum in the pens of the nation's largest phone companies, while also arguing that having Verizon and the cable industry as BFFs will likely result in less motivation to compete on the landline broadband front.
Kohl's inquiry comes on the heels of a recent letter by Rep. Mike Doyle
inquiring about the deal and Verizon's recent decision to again force DSL users to purchase a costly landline in order to get broadband service. As earning reports make very clear, Verizon has essentially given up on millions of their customers on aging DSL lines, and is letting them flee to faster cable alternatives as Verizon focuses on the higher-growth opportunities in wireless.
Verizon has stopped expanding FiOS services to focus on ramping up adoption in those markets. Roughly 40% of Verizon's existing landline broadband subscribers continue to be on DSL services, and Verizon has every indication of either leaving those customers on last-gen technology, or selling them to any number of financially dubious smaller telcos. Verizon's major focus now is LTE wireless, and in particular their HomeFusion fixed LTE service
. Verizon has a strong momentum to shift these DSL users to HomeFusion -- where $10 per gigabyte overages await.
Kohl had already written to Verizon to criticize the company's backward momentum in forcing landline and DSL bundling, something consumers and consumer advocates spent years to successfully stop. "The bundling that Verizon now plans could potentially lessen competition, increase rates and lead to less innovation," Kohl said in his letter. "Consumers benefit when one service is competing with another, not when they must buy a package of services."
| |GlennAllenSunny with highs in the 80sPremium
Re: Verizon moving on to leading edge technology Well, now you're just being facetious.
| |tim_kButtons, Bows, Beamer, Shadow, KaseyPremium,VIP
Re: Verizon moving on to leading edge technology
said by zoom314:Who's plant do you think DSL Extreme is using? said by FFH:
Seems like Verizon is doing what everyone should want them to. And that is moving on to the new communication technologies of the 21st century and leaving behind the buggy whip technology of DSL. It is better for the customers; better for the country; better for the investors. The only ones complaining, besides an aging brain dead Senator, are those who continue to demand that Verizon continue to support old technology, but at lower than their costs.
And Verizon is wanting to foist very expensive and unregulated LTE onto people who don't want it as it's too costly and who would rather keep DSL. I have DSL in a Verizon area, just not with Verizon anymore, over a year back I went to DSL Extreme instead, I get what I want for $32.83 a month, which is 3M/768K and it's on 24/7. Cable here is TWC and it's more expensive for the same speeds and I'm not interested in moving to TWC.
RIP my babies Buttons 1/15/94-2/9/07, Beamer 7/24/08, & Bows 12/17/94-10/11/09
·Time Warner Cable
Re: handwriting was on the wall..
said by tmc8080:Agreed, I have My doubts anything will be done, Verizon thinks they can get away with whatever Verizon wants, so is it no surprise that Verizon is stating "it's our way or no internet"...
Not a peep when AT&T did this only a few short years after swallowing up Bell South.. huh?
The spectrum horse-trade is more ominous when you take the big picture into account... there is not just one piece that in and of itself is menacing to competition, but collectively if you take ALL of Verizon's recent anti-competitive actions and put them together....
let's start our list.. feel free to add if I missed something:
Verizon moves away from offering unlimited wireless data plans
Verizon begins MANDATING contracts for FIOS subscribers with an emphasis on selling only bundled services.
Verizon increases early termination fees across ALL services
Verizon changes language to raise taxes & fees in it's price-lock rates and to win any lawsuit or arbitration related to same
Verizon raises rates on wireless data
Verizon raises rates on FIOS services
Verizon raises rates on copper services
Verizon raises rates on wireless services and begins forced bundling / "FAMILY SHARED DATA PLANS"
Verizon changes terms of service in wireless to scale back handset subsidies
Verizon signs agreement with Comcast for sale of spectrum and agrees to not compete in each others markets (illegal, btw.. but you'd be surprised how much lipstick Verizon lawyers can manufacture when paid well enough to gussy up that pig)
Verizon neglects more copper plant networks and hints of more sales to bankrupt and failing Spin-Off companies... (AT&T chomping at the bit to do the same)
P.S. This is all a red herring until the next election cycle is over.. not a damned thing will be done about it until then at the minimum.