Verizon Threatens Massachusetts If you don't pass franchise 'reform,' you don't get broadband? Tipped by zed260 
We've frequently discussed how AT&T and Verizon have lobbied hard to pass laws that strip video authority from towns and cities, under the premise of speeding up telcoTV deployment and promoting competition. Unfortunately, many of these bills are little more than rubber-stamped wish lists for the carriers that erode eminent domain rights, strip all authority from local government, eliminate consumer protections and gut public access funding. After selling much of New England because they didn't think it was profitable, Verizon is now pushing franchise "reform" in Massachusetts, using broadband investment funds and the recession as a political threat: Ellen M. Cummings, a spokeswoman for Verizon, said that with the struggling economy, the company has to choose where to commit its financial resources. Therefore, it is looking for the quickest return on its investment. The problem has been that these bills frequently do virtually nothing for the consumer and are primarily aimed at legalizing broadband deployment cherry picking. While local towns and cities sometimes make carriers jump through hoops (something played up to great effect by AT&T/Verizon fan Kevin Martin during his tenure), tough local regulators are the reason cable TV and broadband is available to huge swaths of rural America. Cable operators got no such special privileges when they were deploying coaxial to these markets. While these bills are promoted as a magic elixir that will bring competition and lower TV prices to a region, when people go back to investigate whether these bills actually helped anybody (which is amusingly rare), data indicates that TV prices increased anyway and consumers got the short end of the stick. State lawmakers are usually no match for Verizon and AT&T lobbying muscle. Legislators frequently don't understand what the bills even do -- but are easily lured by promises of inexpensive TV service that never comes.
|
 major marcoRes Firma Mitescere NescitPremium join:2003-02-13 Stepford, CA | Correction Legislators frequently don't understand what the bills even do but are easily lured by promises of inexpensive TV service that never comes. but pass the bills anyway, and, then proceed to collect their bribes campaign contributions accordingly. | |
|  |  BF69Premium join:2004-07-28 Camden, TN | Re: Correction said by major marco:Legislators frequently don't understand what the bills even do but are easily lured by promises of inexpensive TV service that never comes. but pass the bills anyway, and, then proceed to collect their bribes campaign contributions accordingly. funny how before franchise reform passed in my state Charter never delivered service outside city limits. Then after state franchise passed Charter applied for and got one for the whole county. Now Charter is expanding to areas that it never bothered with before. Hmmmmmmm. I knew exactly where Charter services stopped in every direction in my county( because I'm a nerd about shit like that ) I can can verify they have greatly expanded their footprint in just the past 6 months since they received the countrywide franchise granted to them by the state thanks to this new legislation. Ironically Charter was against this and At&t was for this statewide franchising and when they had a chance to get a countywide franchise in my area At&t didn't even bother to apply.
Some friends that lived just outside city limits can now enjoy both Charter cable and more importantly broadband. Some that a bit further out still can't get it but it's MUCH closer than it ever was and it's only a matter of time before they get it. | |
|
 DaveDudeNo Fear join:1999-09-01 New Jersey kudos:1 1 edit | Call their bluff, and call comcast and Tw I have had it with Verizon, Give the cables statewide agreements and when Verizon figures out its not he only guy out there, there will come around. | |
|  |  batterupI Can Not Tell A Lie.Premium join:2003-02-06 Netcong, NJ Reviews:
·Verizon Online DSL
| Re: Call their bluff, and call comcast and Tw said by DaveDude:I have had it with Verizon, Give the cables statewide agreements and when Verizon figures out its not he only guy out there, there will come around. Cable has a state wide franchise in NJ. | |
|
 OwlSaverOwlSaverPremium join:2005-01-30 Berwyn, PA Reviews:
·Verizon FiOS
| Why should local governments have this power? It seems to me that most utilities are regulated at the state level. I am not sure that most local governments have the expertise or time to negotiate the complex (far more complex than they should be) agreements. It really annoys me when the local governments squeeze the cable or telco companies for items completely unrelated to cable TV. Or even related to cable TV.
I think every state should regulate cable tv just as they do power and water. It would give the companies consistency. The state PUC could set rules that are fair to everyone. They would have the scope and power to at least understand what they are signing.
In the end, there is no magic solution that will make everything wonderful. But, I think common statewide standards would be a step in the right direction. | |
|  |  Romney2012Defeat Obama 2012-Chg we can believe inPremium join:2002-03-03 USA kudos:4 | Re: Why should local governments have this power? said by OwlSaver:It seems to me that most utilities are regulated at the state level. I think every state should regulate cable tv just as they do power and water. The state PUC could set rules that are fair to everyone. They would have the scope and power to at least understand what they are signing. And the legislators don't have to do what Verizon wants. They could actually do what they are elected for - represent the voters. But will they do that? Until voters actually show some interest and throw the bums from office, the voters get what they deserve. Ultimately it falls on them for being stupid. -- My BLOG .. .. Internet News .. .. My Web Page | |
|  |  ptrowskiGot Helix?Premium join:2005-03-14 Putnam, CT kudos:4 Reviews:
·VOIPo
| said by OwlSaver:It seems to me that most utilities are regulated at the state level. I am not sure that most local governments have the expertise or time to negotiate the complex (far more complex than they should be) agreements. It really annoys me when the local governments squeeze the cable or telco companies for items completely unrelated to cable TV. Or even related to cable TV. I think every state should regulate cable tv just as they do power and water. It would give the companies consistency. The state PUC could set rules that are fair to everyone. They would have the scope and power to at least understand what they are signing. In the end, there is no magic solution that will make everything wonderful. But, I think common statewide standards would be a step in the right direction. Many towns in MA have their own muni water or electrical company and some have their own cable ISP. -- "So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org | |
|  |  | | Michael, Would you want Starbucks to open a cafe in town hall without paying the town rent? I think not. Cable company fees to local municipalities are "rent" for their uses of the public right-of-way. PROW fees have long been the rule in the cable TV industry, and they make sense because the usage of PROW's in each community differ, and one size does not fit all.
Cable TV is not a "utility" -- that is, something vital for the public necessity and convenience. It is a private entertainment service. I do not believe cable TV operator regulation should be something paid for by all taxpayers, but only by cable subscribing residents.
pdBerg | |
|  |  bicker join:2007-05-10 Burlington, MA | I agree Michael. There is too much pseudo-extortion in the system when the local governments are involved. The states are reasonably structured to grant such licenses; they already manage similar services such as telecom, energy, etc. | |
|
 Mark F join:2007-08-01 Fort Wayne, IN | Cherry Picking "Ellem M. Cummings, a spokeswoman for Verizon, said that with the struggling economy, the company has to choose where to commit its financial resources."
Which means, I take it, Massachusetts had better play ball with them, or they may wind up like Indiana, Oregon and Washington- dumped by Verizon so they can offer their product to more profitable customers.
Everybody with Verizon better watch out, or there's no telling what you'll lose. Mark F. | |
|  |  iansltx join:2007-02-19 Golden, CO kudos:2 Reviews:
·Verizon Online DSL
·Comcast
| Re: Cherry Picking Who would VZ sell MA to? Frontier and FairPoint are already gonna buckle under the weight, or are buckling, with their new territories. If Verizon sold their Mass. network to Windstream or the new Embarq/CenturyTel merged entity, those providers wouldn't find it hard to wire up areas competitively since they're used to working in rural areas. They probably won't deploy 20 Mbit upload speeds, but fiber wouldn't be out of the question.
If Verizon insists on cherry picking markets, take away the USF, and take away all access lines (for a nominal fee) that don't have HSI right now. Show them who paid for those lines...taxpayers...and taxpayers can reallocate them to someone who will actually provide service to everyone. | |
|  |  |  Mark F join:2007-08-01 Fort Wayne, IN | Re: Cherry Picking That's what I'm afraid of, that after having FIOS for almost two years (and loving it), Frontier will take over Verizon's TV and internet operations in our area and find they've bitten off more than they can chew.
And, we'll wind up paying more for less.
FIOS is so popular that it seems like everyone wants it (but not everyone can have it or keep it), which puts Verizon in a good position to get what they want. Mark F. | |
|  |  |  bicker join:2007-05-10 Burlington, MA | Taxpayers didn't pay for the lines that Verizon uses for its profitable ventures. Taxpayers would "take back" a whole heap of unprofitable trouble, that no one else would want to get involved in. | |
|  |  |  |  iansltx join:2007-02-19 Golden, CO kudos:2 Reviews:
·Verizon Online DSL
·Comcast
| Re: Cherry Picking If it's not profitable, raise rates and roll out services that are worth big bucks. Roll out fiber and you can run triple play over it, which will net $100+ per customer per month. Or amortize stuff over the longer run.
Also, if you're doing the co-op thing you don't have to actually be profitable to run. Just break even. | |
|  |  |  |  |  bicker join:2007-05-10 Burlington, MA | Re: Cherry Picking Or just invest money in other localities, or in other types of services, where bigger returns can be earned. | |
|
 |  patcat88 join:2002-04-05 Jamaica, NY kudos:1 | said by Mark F:Which means, I take it, Massachusetts had better play ball with them, or they may wind up like Indiana, Oregon and Washington- dumped by Verizon so they can offer their product to more profitable customers. Indiana, Sell Boston like Indiana? The financial and Fortune 500 city? No way in Hell. That would be as retarded as to sell DC or Philly or NYC. | |
|  |  bicker join:2007-05-10 Burlington, MA | Verizon definitely engages in cherry-picking, which is why I think it is ludicrous when folks dump on their legacy MSO for things that can be attributed to their commitment to serve every customer, unlike Verizon. | |
|
 | | Private Business = Bad on DSLR Is that really news? | |
|  |  John_WPremium join:2000-04-25 Worcester, MA | Re: Private Business = Bad on DSLR I know. This has been kicking around for a while now. Verizon flexed their muscles a few years ago and ended all FIOS intalls and expansion in the state and refused to start back up again until they got their way.
I can see VZ's point of view. They were having to negotiate with each and every town. Some towns were requiring that VZ build playgrounds and other unrelated crazy things before they would sign any contract with them.
But at least the towns were forcing VZ to install throughout the entire town instead of only profitable areas. -- Team Discovery--BBR Team Helix--Cuz I Care!! | |
|  |  |  | | Re: Private Business = Bad on DSLR Funny how when a city that has an upscale customer base wants to dictate terms to VZ (be it broadcasting the city council meeting or building something the city wants, e.g. a park) it is bad, but when VZ wants to bypass whole cities or just the poor side of town it is all good. Both the cities and VZ are doing the same thing, optimizing their side of the deal. As for moving the whole process to the state level, both VZ and most state representatives are doing the same thing, optimizing the exchange of campaign contributions by cutting out all the local politicians.
All this reminds me of Ameritech's efforts to get state-wide regulation in Illinois (they had cable ops back then) before they'd roll out ISDN (Project Pronto) - you can guess who won and what didn't happen next. | |
|  |  |  | | Your tale about VZ being required to "build playgrounds" is a completely false, urban myth -- circulated primarily by Verizon "astroturf" groups fronting for the company.
requirements on cable TV operators are essentially rent on the public rights of way they use to make private profit -- like rent for Starbucks in a city hall space. | |
|
 | | Serve ALL of your customers "In Western Mass., still using dial-up" Boston Globe April 29, 2007 While legislators are trying to make sure Verizon deploys the next generation of technology in the Eastern part of the state, towns all over W estern Massachusetts are still waiting for Verizon to deploy last-generation technology ("Verizon is pressured on network ," April 21 ). We are still using 56K dial-up modems (remember those?) and waiting to get the DSL lines that Eastern Massachusetts has had for more than a decade. But we do agree with our friends in the Eastern part of the state, that Verizon should start serving its customers -- all of them -- before it gets any additional perks. Aron P. Goldman Shutesbury | |
|  | | more = better? Wow, this is great. Instead of having one bad choice for cable TV, you can now have two worse choices! And if you don't live in a wealthy area, you're screwed now because no build-out requirements.
But of course more choices is always better! | |
|  | | Verizon sucks I would like those anxious to protect their VIOS to consider for a moment that some of is in our highly taxed and highly regulated state still are relegated to dial-up. And, with Verizon as our only phone option, when the service goes out as it frequently does, there is no cell back-up. Verizon sucks, and they are crooks. | |
|  |  PathfinderDazed ConfusedPremium join:2000-03-26 Mount Vernon, NY | Re: Verizon sucks And yet you post from verizon.net. If there isn't anyone but Verizon then shouldn't your town be working to get competition in? | |
|  |  |  | | Re: Verizon sucks Competition would be *wonderful*, but right now Verizon has a legal monopoly on the 'last mile' of POTS (Plain Ordinary Telephone Service). The cable companies in the area are not going to run their services due to poor ROI (too few houses per road mile, and many already have Satellite TV). The Cell companies face problems with ROI issues (to small a population density) *and* anti-Cell tower sentiment. Verizon also goes out of its way to kill any competition, often by offering cut-rate (low-end) DSL at *below* cost as a "lost leader" (probably a technical violation of anti-trust laws).
The few local COLACs don't have the capital to string fiber on their own, they can only rent Verizon's infrastructure (copper cables full of water and roadside boxes full of snakes -- I kid you not!) and are beholden to Verizon (who has a history of screwing with competing 'local' carriers).
At this point only the state or federal government can really do anything about this. The state regulatory agency is looking at opening a *regional* investigation on Verizon's maintenance and service practices in Western Mass. It is almost certain that there will be an investigation and things in fact look bad for Verizon. I really hope Verizon does get raked over the coals -- they really do deserve it! Locally, Verizon is a most *hated* company. Unfortunately we are all stuck with Verizon. And that sucks. | |
|  |  |  |  bicker join:2007-05-10 Burlington, MA 1 edit | Don't expect companies to pursue unprofitable ventures You've casually glossed over the real crux of the issue: Lack of ROI for how consumerists want services to be offered. The more consumerists seek to impose unprofitable marketplaces on business, the less business will be motivated to provide such service. So either bite the bullet and go socialist, or admit that government shouldn't be manipulating the marketplace and should therefore let suppliers offer what consumers are willing to purchase, based on the prevalence of superior profitability, stemming from satisfying needs that are of the greatest value to consumers. | |
|  |  |  |  |  | | Re: Don't expect companies to pursue unprofitable ventures
OK, so what happens to consumers in the so-called "unprofitable marketplaces"? | |
|  |  |  |  |  |  bicker join:2007-05-10 Burlington, MA | Re: Don't expect companies to pursue unprofitable ventures What happens, in what way? | |
|  |  |  |  |  |  |  | | Re: Don't expect companies to pursue unprofitable ventures In way of services. What should they do for internet access if no company wants to provide the service because the ROI is not as high as in other areas? Note, I am not saying "UNprofitable", but that in certain low density areas the ROI potential would be less because there are less customers per square mile. It seems fair to me that Verizon needs to take the good with the not as good in a "package deal" with NO cherry picking. | |
|  |  |  |  |  |  |  |  bicker join:2007-05-10 Burlington, MA 2 edits | Re: Don't expect companies to pursue unprofitable ventures It isn't any business' responsibility to satisfy needs that are unprofitable to satisfy. Rather, it is government's responsibility to pave the roads to make satisfying the important needs of its constituents sufficiently profitable (or provide those services itself).
To that end, the US government runs the USF, which subsidizes rural telecom so that it is sufficiently profitable. The lack of services, therefore, is a reflection of deliberate decision on the part of the representatives of the people of the United States that such services are not important enough. If you are unsatisfied with the options available to you, just like if you are unsatisfied with rail service to your area, or air service to your area, or highways, etc., then contact your elected representatives and charge them with the responsibility for fostering the kind of community you want to live in. | |
|  |  |  |  |  |  |  |  |  See 6 replies to this post |
 |  |  |  |  |  Mark F join:2007-08-01 Fort Wayne, IN | We get less (slower internet, many fewer channels, etc) and pay more? Mark F. | |
|
 | | No threats Despite the antiquated TV franchising process in Massachusetts that was designed more than 30 years ago for cable monopolies, Verizon continues to invest heavily in building its all-fiber broadband network in the Bay State. We invested more than $600 million last year and will approximate that this year. We are the largest private investor in the state. In Massachusetts, Verizon must compete with other states for capital dollars to expand our all-fiber network. The TV franchising process in many other states make them more attractive places to invest. I can assure you that a streamlined franchise process has resulted in a reduction in cable rates in other states. Before Verizon came to town, you never saw cable companies offering $99 Triple Play packages, discounts, or cut-rate deals to hang on to customers. And cable companies did receive one very special privilege when they began a monopoly. All anyone has to do is talk to someone who has switched from cable to Verizon to see just how competition has benefitted consumers. The cherry picking accusation against Verizon that originates from the cable monopolies is getting old. Verizon offers all its services to communities of all demographics and we build out the entire community. Bottom lineno one has threatened anyone and Verizon continues to invest heavily in Massachusetts.
Phil Santoro Verizon Media Relations Boston | |
|  |  See 18 replies to this post | |
 Reviews:
·Frontier Communi..
| Quote from Karl's post "While local towns and cities sometimes make carriers jump through hoops (something played up to great effect by AT&T/Verizon fan Kevin Martin during his tenure), tough local regulators are the reason cable TV and broadband is available to huge swaths of rural America. Cable operators got no such special privileges when they were deploying coaxial to these markets. "
Karl, I'm confused by this. Contradictory point on cable, seems to me. Could you, or someone else, please explain this a little more? "cable TV and broadband is available to huge swaths of rural America." Then, "Cable operators got no such privilegs when they were deploying coaxial to these markets." ?! | |
|  |  PathfinderDazed ConfusedPremium join:2000-03-26 Mount Vernon, NY | Re: Quote from Karl's post It seems to me that the only privilege the cable companies got was NO COMPETITION. That is until Verizon came along. How many cable companies were forced to share their lines with competitors? | |
|
 bicker join:2007-05-10 Burlington, MA | Prices increase anyway because of the value of service Prices increase anyway because the service is worth more than the original prices. (1+1=2)
Anyone who thinks that more competition (such as from AT&T and Verizon) will lower prices has deluded themselves into thinking that they're actually paying too much now for what they're getting. That's a favorite self-deception of consumerists (born mostly out of rampant Entitlement Mentality that routinely plagues consumerists), and a deception that they are regularly trying to convince others of. However, the reality is that today's prices are pretty close to the value of the services delivered, and that value has increased over time and shall increase further over time. Adding competition therefore will increase service options (which is good for consumers), but prices won't, and shouldn't, change much as a result.
I'm sure the usual suspects will chime in in reply, in feigned outrage at the suggestion that their victimization is in their own heads, and that their concerns about service providers are mostly the same type of Chicken Little posturing that consumerists always engage in. | |
|
 | |
|
|