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Verizon Wireline Workers Prepare to Strike Aug. 1; “Negotiations Are Going Poorly”

Phillip Dampier July 28, 2015 Consumer News, Verizon No Comments
Verizon workers attend a mass rally at Verizon headquarters on July 25, 2015. (Image: CWA)

Verizon workers attend a mass rally at Verizon headquarters on July 25, 2015. (Image: CWA)

If Verizon management and its unionized workforce cannot come to terms on a new contract by this Saturday, up to 39,000 Verizon landline workers from Massachusetts to Virginia will begin a strike industry observers predict could last for weeks.

Verizon Communications has increasingly shifted attention and investment away from its wireline networks, which include copper landline service and its FiOS fiber to the home network. The workforce of line technicians, installers, and engineers that are trying to keep Verizon’s wired networks running well are under pressure to accept concessions the company says reflect the reality of a dwindling number of landline customers and competition for its FiOS network.

As of Monday, representatives for the Communications Workers of America District 1, the International Brotherhood of Electrical Workers (IBEW) Local 2213 and IBEW New England Regional committees continued to call out Verizon for insisting on a list of benefit and job security reductions:

  • Eliminating protections against layoffs and mandatory transfers/temporary reassignment to different Verizon service areas, including those in other states;
  • No Cost of Living increases;
  • Adding Sunday as part of the basic work week;
  • Possible elimination of corporate profit-sharing;
  • Eliminating caps on overtime and limiting payouts to 1.5x regular pay;
  • Reduce the notice given to workers if Verizon has plans for any major technological change (ie. getting rid of rural landlines, selling FiOS, moving customers to wireless, etc.);
  • Reductions in medical benefits including higher deductibles, co-pays, premiums, and co-insurance;
  • Eliminating the union’s ability to negotiate retiree health care benefits, often at risk in other companies;
  • Eliminate the lump sum pension option and introducing new restrictions on pensions and new fees on 401K plans;
  • Eliminate accidental disability coverage;
  • Eliminate family care leave.

cwa_logoVerizon spokesman Rick Young countered that Verizon has offered workers a straight 4% wage increase but admitted many existing contract provisions are decades old and no longer reflect current business reality. Young added Verizon union network technicians are paid $160,000 a year on average in total compensation, including salary, pension and health care. But Verizon management is insistent on cutting back the company’s health care costs, noting Verizon successfully reduced the cost of covering nonunionized workers to about $16,700 per family while union workers still receive coverage worth $20,000-24,000 a year per family.

Union officials counter Verizon was able to manage that by slashing non-union employee benefits and forcing workers into high deductible medical plans that offer lower levels of coverage. In 2011, Verizon fought its unions over the same issues, including a company demand workers accept health care plans with a $5000 out-of-pocket deductible before medical coverage kicked in. That led to a contentious two-week strike.

“Negotiations are going poorly,” Communication Workers of America’s Bob Master told CBS News this week. “We are far apart.”

Verizon-logoWith 86 percent of union members voting to strike if negotiations fail, it seems an almost certainty workers will be on the picket lines by next week if negotiations remain unsuccessful. Workers believe Verizon’s profits have been shared mostly at the top through executive bonuses and ever-increasing compensation packages while ordinary workers are asked to forego benefits and job security.

In solidarity with Verizon customers, the unions are also fighting to force Verizon to further build out its FiOS fiber network to more customers and stop allowing its copper network to deteriorate to the point of unusability.

“On the one hand, Verizon refuses to build its high-speed FiOS network in lower-income areas and on the other, they are systemically ignoring maintenance needs on their landline network,” said Ed Mooney, vice president for CWA District 2-13, which covers Pennsylvania to Virginia.  “This leaves customers at the mercy of a cable monopoly or stuck with deteriorating service while Verizon executives and shareholders rake in billions.”



A highly critical audit of Verizon’s FiOS rollout in New York City found that Verizon failed to meet its promise to deliver high-speed fiber optic Internet and television to everyone in the city who wanted it, claims the union.  During its negotiations for a city franchise, Verizon promised the entire city would be wired with fiber optic cables by June 2014 and everyone who wanted FiOS would get it within six months to a year.  The audit found that despite claiming it had wired the city by November 2014, Verizon systematically continues to refuse orders for service.  The audit also found Verizon stonewalled the audit process.

The CWA also contends rates for basic telephone service have increased in recent years, even as Verizon has refused to expand their broadband services into many cities and rural communities, and service quality has greatly deteriorated. Verizon’s declining service quality especially impacts customers who cannot afford more advanced cable services, or who live in areas with few options for cable or wireless services.

But the company is not hurting for money, argues union officials.

“Verizon made $9.6 billion in profits in 2014 and reported $4.4 billion in profits just in the 2015 second quarter alone,” said Dennis Trainer, vice president of CWA District One in a statement.

“In 2012, during a time of great economic stress, the company came to the union and after 15 months of bargaining, including mediation, reached an agreement that the company said they had to have to survive,” wrote an official updating workers represented by CWA District 2-13 (Mid-Atlantic region) in a bargaining update. “Since then, every year they have made billions of dollars in profits and not one executive officer at Verizon has made a single sacrifice like they told us they needed us to do. The latest insult being [Verizon CEO] Lowell McAdam getting a 16% raise in one year while we have paid more in healthcare, lost pensions for new hires, froze pensions for current members, made significant changes in incidental absence payments and made other changes to our contract that have resulted in stressful working conditions and excessive discipline to our members.”

CWA officials in District 1, representing New York and New England workers, were more blunt in responding to an unsolicited email sent to every worker signed by Marc Reed, Verizon’s executive vice president and chief administrative officer.

“Reed suggests in his e-mail that he has a concern for you and your family,” wrote one official. “Ask yourself, if he really gave a shit about you and your family why is he proposing to gut the contract that provides for you and your family.”

VP Biden Announces Broadband-Challenged Rochester, N.Y. Home to National Photonics Institute

Vice president Biden

Vice President Biden in Rochester, N.Y.

Vice President Joe Biden and New York Gov. Andrew Cuomo today announced Rochester, N.Y., a city notorious for its slow broadband, will be the home of the $600 million Integrated Photonics Institute for Manufacturing Innovation, a hub supporting the development of photonics — technology that powers everything from fiber optic broadband to laser surgery.

Rochester, the home of dramatically downsized household names like Eastman Kodak, Xerox, and Bausch and Lomb, could see thousands of new high technology jobs created in the western New York city to develop new products and services that depend on light waves.

“The innovation and jobs this institute will create will be a game changer for Rochester and the entire state,” said U.S. Rep. Louise Slaughter, (D-Rochester). “This is a huge win that will shape our region’s economy for decades to come.”

Slaughter reportedly spent three years working to bring the center to Rochester and helped secure $110 million from the Defense Department and another $500 million in state and private sector funding to finance its development. The project could prove transformational for a community ravaged by downsizing, most dramatically exemplified by Eastman Kodak, which had 62,000 workers in Rochester during the 1980s but employs fewer than 2,500 today.

Today, Rochester’s largest employers are no longer manufacturers. Health care service providers now lead the way, including the University of Rochester Medical Center/Strong Health (#1) and the Rochester General Health System (#3). Upscale grocery chain Wegmans calls Rochester home and is the community’s second largest employer. The bureaucracies that power the Rochester City School District and Monroe County Government are also among the area’s top-10 employers.

rochesterDespite the job shifts, the fact 24,000 workers in the region are already employed in photonics-related jobs may have been a deciding factor in selecting Rochester for the center.

“The photonics center we are now bringing to Rochester will harness the power of the Defense Department and the prowess of Rochester’s 24,000 employee-strong photonics industry and focus it like a laser beam to launch new industries, technologies and jobs,” Sen. Charles Schumer (D-N.Y.) said in a statement.

Employers, small business start-ups and workers moving into the region are likely to be considerably less impressed by Rochester’s incumbent telecommunications service providers. Although institutional and large commercial fiber networks are available to those with deep pockets, with the exception of Greenlight Networks, a local fiber to the home retail overbuilder providing fast gigabit fiber Internet to a tiny percentage of local residents, the area’s fiber future remains bleak.

Time Warner Cable, by far the largest Internet provider in the region, has left Rochester off its Maxx upgrade list, leaving the city with a maximum of 50/5Mbps Internet speed. Frontier Communications still relies on 1990s era DSL service and the anemic speeds it delivers, evident from the company’s poor average speed ranking — 11.47Mbps — less than half the minimum 25Mbps the FCC considers broadband.

Rochester is hardly a broadband speed leader in New York State, only managing to score in 332nd place. (Image: Ookla)

Rochester is hardly a broadband speed leader in New York State, only managing to score in 332nd place. (Image: Ookla)

The performance of the two providers has dragged Rochester’s broadband speed ranking to an embarrassingly low #336 compared with other communities in New York. Suburban towns in downstate New York enjoy more than twice the speed upstate residents get, largely thanks to major upgrades from Verizon (FiOS) and Time Warner Cable (Maxx). But even compared with other upstate communities, Rochester still scores poorly, beaten by small communities like Watertown, Massena, and Waterloo. Suburban Buffalo, Syracuse, and Albany also outperform Rochester.

In contrast, in Raleigh, N.C., home to the Power America Institute — another federal manufacturing center — broadband life is better:

  • Raleigh is a Google Fiber city and will receive 1,000/1,000Mbps service for $70 a month, around $20 more than what Time Warner charges for 50/5Mbps with a promotion;
  • Raleigh is a Time Warner Cable Maxx city with free broadband speed upgrades ranging from 15Mbps before/50Mbps after to 50Mbps before/300Mbps after;
  • Raleigh is an AT&T U-verse with GigaPower city with 1,000/1,000Mbps service for $120 70 a month.

This article was updated to correct the pricing of AT&T U-verse with GigaPower in Raleigh, N.C., with thanks to reader Darrin Evans for the corrected information.

N.Y. Public Service Commission to Charter/Time Warner Cable: Hope You Are Not in a Hurry

dpsThe New York State Public Service Commission today notified Charter Communications its merger application with Time Warner Cable will require a “more detailed review of the petition,” which means a final decision is unlikely before the end of this year or more likely 2016:

We have received the petition of Time Warner Cable Inc. and Charter Communications, Inc. dated July 2, 2015 seeking authority, pursuant to Public Service Law Sections 100, 101, and 222, to transfer a controlling interest in certain Time Warner Cable telephone systems, cable systems, franchises and assets to Charter and to issue debt. On July 10, 2015, a Supplement was received seeking further approval under PSL § 99(2) for a transfer of Time Warner Cable’s telephone franchises.

According to Sections 99 and 100 of the Public Service Law, such an application is deemed approved after ninety (90) days of filing unless the Commission or its designee notifies the petitioner in writing, within the time period, that the public interest requires the Commission’s review and its written order.

[…] A preliminary review indicates that the public interest requires a more detailed review of the petition. Therefore, pursuant to Public Service Law Sections 99,100, and 101 we are informing you that the Commission will review your petition and will issue a written response in this proceeding.

charter twc bhThe PSC has set a deadline for comments on the merger of Sept. 16 with reply comments due two weeks after that. But on-the-record regional forums will also be held across the state to gather more comments from consumers and stakeholders. Locations of the forums have not yet been announced.

As with Comcast’s merger proposal, a significant review period is expected as the merger of Charter Communications and Time Warner Cable will have profound implications on the entire state. Outside of Long Island and a few boroughs in New York City, Time Warner Cable is by far the most dominant provider serving every major population center in New York.

Two letters have already been added to the record about the merger.

The Rochester Business Alliance filed this letter in “strong support” of the proposed deal, quoting almost entirely from press releases and merger advocacy documents issued by Charter Communications. Time Warner Cable is a “partner member” of the group, better known as the Regional Chamber of Commerce.

RBAlogo“The Rochester Business Alliance advocates for an environment that will promote the success of its members and the local economy,” the group writes on its website. “We help our member companies and their employees stay connected to the issues as well as to the people who can make a difference.”

Michael Kaplan is the first consumer to weigh in on the merger, and he is opposed.

“Just like the Comcast we now have to write to you to ask that you reject this merger,” Kaplan writes. “The only people who benefit from this are the three or four people who will get very rich from it. The rest of the people you are supposed to be protecting? We get much higher cable/Internet rates because they are taking on so much debt that it’s obvious they will have to raise rates significantly. How does this help New York State?”

Kaplan also doesn’t believe Charter’s promise not to usage cap its broadband customers because the commitment expires after three years:

They also promised not to cap or throttle broadband users for three years. Is that a joke?

Time Warner has (due to public backlash) never capped or throttled their Internet. They have not placed data caps on their service which everyone knows is a cash grab.

If you are politically forced into doing this than at the very least Charter MUST keep the current arrangement Time Warner Cable has forever. FOREVER. No data caps, no overage fees, no throttling. Never.

Robert Marcus stands to make over 90 million dollars from the sale of Time Warner. Since his inception as CEO his mission has been to sell the company so he can cash out. He should improve service, equipment, work for us.

We the people are getting sick and tired of it and we are especially of a CEO who is only thinking of his end. What he will personally make. He doesn’t care on how every single person in NY State will get screwed.

Thurman, N.Y. White Space Rural Broadband Wins “Most Innovative Project Award”

rural connectOne of the few “white space” wireless broadband projects deployed in the United States to deliver broadband to rural residents has won the “Most Innovative Project” award, presented during the 2015 New York State Broadband Summit.

The collaborative project between the Town of Thurman, Rainmaker Network Services and Frontier Communications to offer high-speed Internet access to around 65 residents is seen as a successful private-public collaboration to address rural broadband issues in sparsely populated areas.

Frontier Communications provided the trunk line for the service and a $200,000 state grant helped acquire the infrastructure to power the wireless network, which works over unoccupied UHF television channels. The 12 currently subscribing households pay $50 a month for broadband, plus a $292 equipment fee when they sign up. Plans to reach more households have been delayed by a handful of town board members opposed to the project and residents who refuse to grant easements to place equipment on private property. The project had to be re-engineered to workaround some of these difficulties.

PrintDespite the delays, there are estimates another 40-50 households will be able to get the service by the end of summer.

Customers love the service, which is faster than traditional Wireless ISP technology, and comes without speed throttling or data caps.

“By implementing an innovative white space network, Thurman found a way to provide Internet service to a rural area without the need for a large amount of costly infrastructure,” said David Salway, executive director of the New York Broadband Program Office. “Where there was once only dial-up and satellite service, Thurman citizens will have reliable high-speed Internet at affordable rates.”

 http://www.phillipdampier.com/video/Carlson Wireless Technologies Rural Connect 3-2015.mp4

Carlson Wireless Technologies explains how next generation white space wireless broadband can be a cost-effective solution to the digital divide. (3:41)

Still Paying After All These Years: Verizon Raised NY Landline Rates for Phantom FiOS

Phillip Dampier July 15, 2015 Consumer News, History, Public Policy & Gov't, Verizon 1 Comment

Verizon's FiOS expansion is still dead.

Verizon customers in New York are paying artificially higher telephone rates justified to encourage Verizon investment in FiOS fiber to the home upgrades most New York State communities will never receive.

Starting in 2006, the New York Public Service Commission granted Verizon rate increases for residential flat-rate and message-rate telephone service and a 2009 $1.95 monthly increase for certain residence local exchange access lines to encourage Verizon’s investments to expand FiOS fiber to the home Internet across New York State.

“We are always concerned about the impacts on ratepayers of any rate increase, especially in times of economic stress,” said then-Commission chairman Garry Brown in June 2009. “Nevertheless, there are certain increases in Verizon’s costs that have to be recognized. This is especially important given the magnitude of the company’s capital investment program, including its massive deployment of fiber optics in New York. We encourage Verizon to make appropriate investments in New York, and these minor rate increases will allow those investments to continue.”

After Verizon announced it was suspending further expansion of its FiOS project a year later, the company continued to pocket the extra revenue despite reneging on the investments the PSC considered an important justification for the rate increases.


“The commission allowed Verizon rate increases in 2006 and 2008 based, in significant part, upon the assumption that the revenue from the higher rates would lead Verizon to invest in fiber optic lines, presumably for the benefit of wireline customers,” argues a coalition of state legislators, consumer groups, and unions. “Serious questions exist regarding the extent to which funds may instead have been used to build out the network for the benefit of wireless customers. Publicly available reports, while fragmentary, suggest that Verizon may have included construction costs for significant benefit of its wireless affiliate to be included in the costs of the Verizon New York wireline company, thus adding to its costs and tax losses.”

shellAlmost a decade later, Verizon is still receiving the extra revenue while some public officials complain Verizon is not meeting its commitments even in cities where Verizon has introduced FiOS service.

Last week New York City Mayor Bill de Blasio ordered all future city contracts with Verizon be reviewed and authorized by City Hall. City officials complain Verizon promised in 2008 it would make FiOS available to every city resident no later than mid-2014. A year later, the service is still not available in some areas.

Verizon has blamed access issues and uncooperative landlords for most of the delays, but city officials are not happy with Verizon’s explanations.

“They [Verizon] have to demonstrate to us that they are good corporate actors if they want us to use our discretion in ways that benefit them,” the mayor’s counsel, Maya Wiley, told the New York Post.

Meanwhile, upstate New York residents now indefinitely bypassed by Verizon FiOS want a refund for the rate increases that were supposed to inspire Verizon to keep expanding fiber optics.

“Verizon has made at least $250 from me and every other upstate customer for nine years of broken promises,” said Penn Yan resident Mary Scavino. “Not only don’t they offer us fiber optics, we cannot even qualify for DSL service from them. If you can’t get Time Warner Cable in the Finger Lakes, you often don’t have broadband at all. It is them or nothing. Where did our money go?”

And, we're done. Verizon FiOS availability map also showing areas subsequently sold to Frontier.

And, we’re done. Verizon FiOS availability map also showing areas later sold to Frontier.

Fred, a Stop the Cap! reader in the city of Syracuse, thinks the PSC should immediately revoke the rate increases and force Verizon to refund the money to customers who will not get upgraded service.

“It’s not like Verizon cannot make money in a city like Syracuse,” writes Fred. “It’s clear the CEO thinks even more money can be made off Verizon Wireless customers off the backs of landline customers, and the PSC continues to look the other way while they do it.”

Verizon claims it has lost money on its copper wireline network for years, something the PSC seems to accept in its 2009 press release announcing rate increases:

The rate increases will generate much needed additional short-term revenues as the company faces the dual financial pressures created by competitive access line losses and the significant capital it is committing to its New York network. For 2008, Verizon reported an overall intrastate return of negative 6.7 percent and a return on common equity of negative 48.66 percent. The current trend in the market is toward bundled service offerings, and Verizon believes the proposed price changes to its message rate residential service will encourage the migration of customers towards higher-value service bundles.

That migration costs New York ratepayers even more for telephone service. Verizon’s website prompts customers seeking new landline service to bundle a package of long distance discounts and calling features that costs in excess of $50 a month before taxes, fees, and surcharges. Bundling broadband costs even more. Verizon does not tell customers ordering online they qualify for a bare bones landline with no calling features and pay-per-call billing for less than half the cost of Verizon’s recommended bundle.

Verizon's discount calling program "Message Rate B" is only available to Washington, D.C. residents who have been threatened with final disconnection by Verizon.

This Verizon discount calling program known as “Message Rate B” is only available to Washington, D.C. residents who have been threatened with disconnection or have an outstanding balance owed to Verizon. It costs $7.29 a month and includes 75 local calls.

More than three dozen New York State legislators also question whether Verizon’s “losses” are actually the result of Verizon’s purposeful “misallocation of costs” — moving expenses to the landline business even if they were incurred to benefit Verizon’s more profitable wireless division.

“The result has been massive cost increases for consumers, especially for the garden-variety dial tone service at the bottom of the technological ladder,” argues their 2014 petition. “For example, in New York City […] since 2006 the price of residential ‘dial tone’ service (one line item on the bill) went up 84%, while other services, such as inside wire maintenance, went up 132%.”

The petitioners claim there is evidence to dispute Verizon’s assertion its legacy copper network is as big of a money loser as the company suggests, thanks to “cooking the books” with accounting tricks. The petitioners want the PSC to order a review of Verizon’s books to be certain consumers are not being defrauded or manipulated.


Community leaders were arrested in 2013 during a protest outside Verizon’s NYC headquarters (at 140 West Street at the West Side Highway) to out the company for its history of avoiding taxes. (Image: Vocal NY)

From 2009-2013, Verizon New York reported losses of over $11 billion dollars, with an income tax benefit to Verizon Communications of $5 billion, and significant tax revenue losses for state, city and federal governments. Verizon New York has apparently paid no state, city or federal income tax for the last five years or more.

If Verizon is using accounting tricks to inflate the cost of legacy landline service while reducing costs to its wireless service, it could prove a win-win for Verizon and a lose-lose to ratepayers. Verizon could use its “losses” to argue for greater rate increases for landline customers while further reducing its tax obligations. On the wireless side, Verizon would enjoy praise from Wall Street analysts and shareholders pleased by the company’s apparently effective cost controls.

The best evidence of these techniques in action are the statements of company officials which suggest wireless costs are being paid by wireline customers.

Verizon’s chief financial officer, Fran Shammo, indicated to investors that Verizon wireline construction budgets are charged for expenses related to wireless service.

“The fact of the matter is wireline capital — and I won’t get the number but it’s pretty substantial — is being spent on the wireline side of the house to support the wireless growth,” Shammo told investors at Verizon at Goldman Sachs Communacopia Conference, Sept. 20, 2012. “So the IP backbone, the data transmission, fiber to the cell, that is all on the wireline books but it’s all being built for the wireless company.”

“It seems to me Verizon Wireless, already considered the Cadillac of wireless companies, doesn’t need a hidden subsidy from Verizon paid for by ratepayers all over the state,” Fred argues. “It seems very curious to me Verizon pioneered a large regional fiber optic upgrade that just a few years later it considers too costly to continue expanding, even as AT&T, Google, Comcast, and other companies are now entering the fiber business. A Public Service Commission that wants better broadband for New Yorkers ought to get to the bottom of this because it just doesn’t look right.”

Stop the Cap! Will Participate in New York State’s Review of Charter-Time Warner Merger

stop-the-capStop the Cap! will formally participate in New York State’s regulator review of the proposed merger of Charter Communications and Time Warner Cable.

“We will be submitting documents and testimony to the New York State Department of Public Service on behalf of consumers across the state that need a better deal from their cable company,” said Phillip Dampier, the group’s president. “A review of the current proposal from Charter is inadequate for New York ratepayers and most of Charter’s commitments for better service and lower prices expire after just three short years.”

Stop the Cap! will urge regulators to insist on significant changes to Charter’s proposal that will permanently guarantee a broadband future with no compulsory usage caps/usage-based billing, Net Neutrality adherence, affordable broadband to combat the digital divide, and upgrades that deliver faster broadband than what Charter currently proposes outside of New York City.



“Upstate New York is at serious risk of falling dramatically behind other areas where Google Fiber and other providers are moving towards a gigabit broadband future,” Dampier said. “In most of Buffalo, Rochester, Syracuse, Binghamton, and Albany buying the FCC’s definition of broadband means calling a cable company that now delivers no better than 50Mbps to residential customers. Verizon FiOS expansion is dead and obsolete/slow DSL from Frontier and Verizon should have been scrapped years ago.”

Stop the Cap! worries that with limited prospects for a major new competitor like Google in Upstate New York, broadband speeds and service will not keep up with other states. Verizon has devoted most of its financial resources to expanding its wireless mobile network, which is too expensive to use as a home broadband replacement. Frontier claims to be investing millions in its networks, but has delivered only incremental improvements to their DSL service, which in most areas is still too slow to qualify as broadband.

“Frontier is more interested in acquisitions these days, not upgrades,” Dampier argued.

“Although we have some entrepreneurs managing to deliver competitive fiber service in limited areas, it will likely take years before they will reach most customers,” Dampier added. “Upstate New York cannot wait that long.”

Big City Telecom Infrastructure is Often Ancient: Conduits 70+ Years Old, Wiring from 1960s-1980s

A panel electromechanical switch similar to those in use in New York until the 1970s.

A panel electromechanical switch similar to those in use in New York until the 1970s. They were installed in the 1920s.

As late as the 1970s, New York Telephone (today Verizon) was still maintaining electromechanical panel switches in its telephone exchanges that were developed in the middle of World War I and installed in Manhattan between 1922-1930. Reliance on infrastructure 40-50 years old is nothing new for telephone companies across North America. A Verizon technician in New York City is just as likely to descend into tunnels constructed well before they were born as is a Bell technician in Toronto.

Slightly marring last week’s ambitious announcement Bell (Canada) was going to commence an upgrade to fiber to the home service across the Greater Toronto Area came word from a frank Bell technician in attendance who predicted Bell’s plans were likely to run into problems as workers deal with aging copper infrastructure originally installed by their fathers and grandfathers decades earlier.

The technician said some of the underground conduits he was working in just weeks earlier in Toronto’s downtown core were “easily 60-70 years old” and the existing optical fiber cables running through some of them were installed in the mid-1980s.

At least that conduit contained fiber. In many other cities, copper infrastructure from the 1960s-1980s is still in service, performing unevenly in some cases and not much at all in others.

Earlier this year, several hundred Verizon customers were without telephone service for weeks because of water intrusion into copper telephone cables, possibly amplified by the corrosive road salt dumped on New York streets to combat a severe winter. Verizon’s copper was down and out while its fiber optic network was unaffected. On the west coast, AT&T deals with similar outages caused by flooding. If that doesn’t affect service, copper theft might.


Fiber optic cable

Telephone companies fight to get their money’s worth from infrastructure, no matter how old it is. Western Electric first envisioned the panel switches used in New York City telephone exchanges until the end of the Carter Administration back in 1916. It was all a part of AT&T’s revolutionary plan to move to subscriber-dialed calls, ending an era of asking an operator to connect you to another customer.

AT&T engineer W.G. Blauvelt wrote the plan that moved New York to fully automatic dialing. By 1930, every telephone exchange in Manhattan was served by a panel switch that allowed customers to dial numbers by themselves. But Blauvelt could not have envisioned that equipment would still be in use fifty years later.

As demand for telephones grew, the phone company did not expand its network of panel switches, which were huge – occupying entire buildings – loud, and very costly to maintain. It did not replace them either. Instead, newer exchanges got the latest equipment, starting with more modern Crossbar #1 switches in 1938. In the 1950s, Crossbar #5 arrived and it became a hit worldwide. Crossbar #5 switches usually stood alone or worked alongside older switching equipment in fast growing exchanges. It occupied less space, worked well without obsessive maintenance, and was reliable.

It was not until the 1970s that the Bell System decided to completely scrap their electromechanical switches in favor of newer electronic technology. The advantages were obvious — the newer equipment occupied a fraction of the space and had considerably more capacity than older switches. That became critical in New York starting in the late 1960s when customer demand for additional phone lines exploded. New York Telephone simply could not keep up with and waiting lists often grew to weeks as technicians looked for spare capacity. The Bell System’s answer to this growth was a new generation of electronic switches.

The #1 ESS was an analog electronic switch first introduced in New Jersey in 1965. Although it worked fine in smaller and medium-sized communities, the switch’s software bugs were notorious when traffic on the exchange reached peak loads. It was clear to New York Telephone the #1 ESS was not ready for Manhattan until the bugs were squashed.

Bell companies, along with some independent phone companies that depended on the same equipment, moved cautiously to begin upgrades. It would take North American phone companies until August 2001 to retire what was reportedly the last electromechanical switch, serving the small community of Nantes, Quebec.


A notorious 1975 fire destroyed a phone exchange serving lower Manhattan. That was one way to guarantee an upgrade from New York Telephone.

On rare occasions, phone companies didn’t have much of a choice. The most notorious example of this was the Feb. 27, 1975 fire in the telephone exchange located at 204 Second Avenue and East 13th Street in New York. The five alarm fire destroyed the switching equipment and knocked out telephone service for 173,000 customers before 700 firefighters from 72 fire units managed to put the fire out more than 16 hours later. That fire is still memorialized today by New York firefighters because it injured nearly 300 of them. But the fire’s legacy continued for decades as long-term health effects, including cancer, from the toxic smoke would haunt those who fought it.

The New York Telephone building still stands and today also houses a street level Verizon Wireless retail store.

New York Telephone engineers initially rescued a decommissioned #1 Crossbar switch waiting to be melted down for scrap. It came from the West 18th Street office and was cleaned and repaired and put into emergency service until a #1 ESS switch originally destined for another central office was diverted. This part of Manhattan got its upgrade earlier for all the wrong reasons.

Throughout the Bell System in the 1970s and 80s, older switches were gradually replaced in favor of all electronic switches, especially the #5 ESS, introduced in 1982 and still widely in service today, serving about 50% of all landlines in the United States. Canadian telephone companies often favored telephone switches manufactured by Northern Telecom (Nortel), based in Mississauga, Ontario. They generally worked equally well as the American counterpart and are also in service in parts of the United States.

The legacy of more than 100 years of telephone service has made running old and new technology side by side nothing unusual for telephone companies. It has worked for them before, as has their belief in incremental upgrades. So Bell’s announcement it would completely blanket Toronto with all-fiber service is a departure from standard practice.

For Bell in Toronto, the gigabit upgrade will begin by pushing fiber cables through existing conduits that are also home to copper and fiber wiring still in service. If a conduit is blocked or lacks enough room to get new fiber cables through, the Bell technician predicted delays. It is very likely that sometime after fiber service is up and running, copper wire decommissioning will begin in Toronto. Whether those cables remain dormant underground and on phone poles for cost reasons or torn out and sold for scrap will largely depend on scrap copper prices, Bell’s budget, and possible regulator intervention.

But Bell’s upgrade will clearly be as important, if not more so, than the retirement of mechanical phone switches a few decades earlier. For the same reasons — decreased maintenance costs, increased capacity, better reliability, and the possibility to market new services for revenue generation make fiber just as good of an investment for Bell as electronic switches were in the 1970s and 1980s.

http://www.phillipdampier.com/video/ATT Reconnecting 170000 Phone Customers in NYC After a Major Fire 1975.mp4

AT&T produced this documentary in the mid-1970s about how New York Telephone recovered from a fire that destroyed a phone exchange in lower Manhattan and wiped out service for 173,000 customers in 1975. The phone company managed to get service restored after an unprecedented three weeks. It gives viewers a look at the enormous size of old electromechanical switching equipment and masses of phone wiring. (22:40) 

Charter Asks FCC to Approve Time Warner Cable/Bright House Merger; Stop the Cap! Urges Changes

charter twc bhCharter Communications last week filed its 362 page redacted Public Interest Statement laying out its case to win approval of its acquisition of Time Warner Cable and Bright House Networks, to be run under the Charter banner.

“Charter may not be a household name for all Americans, but it has developed into an industry leader by implementing customer and Internet-friendly business practices,” its statement reads.

The sprawling document is effectively a sales pitch to federal regulators to accept Charter’s contention the merger is in the public interest, and the company promises a range of voluntary and committed service upgrades it says will improve the customer experience for those becoming a part of what will be America’s second largest cable operator.

Charter’s proposed upgrades fall under several categories of direct interest to consumers:

Broadband: Charter will commit to upgrade customers to 60Mbps broadband within 30 months (about 2.5 years) after the deal is approved. That could mean some Time Warner Cable customers will still be serviced with standard speeds of 15Mbps as late as 2018. Time Warner Cable’s Maxx upgrade program will be effectively frozen in place and will continue in only those areas “consistent with Time Warner Cable’s existing deployment plans.” That will leave out a large sections of the country not on the upgrade list. Charter has committed to impose no data caps, usage-based pricing or modem fees, but only for three years, after which it will be free to change those policies at will.

Wi-Fi: Charter promises to build on Time Warner’s 100,000 Wi-Fi hotspots, most in just a few cities, and Bright House’s denser network of 45,000 hotspots with a commitment to build at least 300,000 new hotspots across Charter’s expanded service area within four years. Charter will also evaluate deploying cable modems that also act as public Wi-Fi hotspots. Comcast already offers over 500,000 hotspots with plans for many more, making Charter’s wireless commitment less ambitious than what Comcast today offers customers.

Cable-TV: Charter has committed to moving all Time Warner and Bright House systems to all-digital service within 30 months. Customers will need to lease set-top boxes designed to handle Charter’s encryption system for all cable connected televisions. Among those boxes includes Charter’s new, IP-capable Worldbox CPE and cloud-based Spectrum Guide user interface system.

Video on the Go: Charter will adopt Time Warner Cable’s streaming platform and apps to provide 300 streaming television channels to customers watching from inside their homes (a small fraction of those channels are available while outside of the home). Customers will not be able to watch on-demand recorded DVR shows from portable devices, but can program their DVRs from apps or the website.

Discount Internet for the Poor: Charter references the fact its minimum entry-level broadband speed is 60Mbps so that does not bode well for Time Warner Cable’s Everyday Low Priced Internet $14.99 slow-speed Internet plan. Instead Charter will build upon Bright House Networks’ mysterious broadband program for low-income consumers.

Based on Charter’s initial proposal, Stop the Cap! will urge state and federal regulators to require changes of these terms before approving any merger. Among them:

  1. All existing Time Warner Cable and Bright House service areas should be upgraded to meet or exceed the levels of service offered by Time Warner Cable’s Maxx program within 30 months. It is not acceptable to upgrade some customers while others are left with a much more modest upgrade program proposed by Charter;
  2. Charter must commit to Net Neutrality principles without an expiration date;
  3. Regardless of any usage-cap or usage-based pricing plans Charter may introduce after its three-year “no caps” commitment expires, Charter must permanently continue to offer unlimited, flat rate Internet service at a reasonable price as an alternative to usage-priced plans;
  4. Customers must be given the option of opting out of any leased/provided-modem Wi-Fi hotspot plan that offers a wireless connection to outside users without the customer’s consent;
  5. Charter must commit to a more specific Wi-Fi hotspot program that details towns and cities to be serviced and proposed pricing for non-customers;
  6. Charter must allow customers to use their own set-top equipment (eg. Roku, Apple TV, etc.) to receive cable television service without compulsory equipment/rental fees. The company must also commit to offering discount alternatives such as DTAs for secondary televisions and provide an option for income-challenged customers compelled to accept new equipment to continue receiving cable television service;
  7. Charter must retain Time Warner Cable’s Everyday Low Priced $14.99 Internet plan regardless of any other low-income discount program it offers. If it chooses to adopt Bright House’s program, it must broaden it to accept applications year-round, simplify the application process and eliminate any waiting periods;
  8. Charter must commit to independent verification of customer quality and service standards and adhere to any regulatory guidelines imposed by state or federal regulators as a condition of approval.
  9. Charter must commit to expansion of its cable network into a reasonable number of adjacent, unserved areas by committing a significant percentage (to be determined) of measurable financial benefits of the merger to the company or its executives towards this effort.

Stop the Cap! will closely monitor the proceedings and intends to participate on both the state (New York) and federal level to guarantee any merger provides consumers with an equitable share of the benefits. We will also be examining the impact of the merger on existing Time Warner Cable and Bright House employees and will promote merger conditions that protect jobs and limit outsourcing, especially overseas.

Some Time Warner Cable Customers Get a Small Speed Boost Thanks to Overprovisioning

Phillip Dampier June 29, 2015 Broadband Speed, Consumer News, Time Warner Cable 6 Comments

timewarner twcTime Warner Cable customers in parts of the northeast have noticed their broadband speeds increased slightly over the last several days.

Stop the Cap! reader Howard Goldberg was among those who noticed Time Warner’s broadband performance in upstate New York has improved, at least for upper tiers.

“Over the past 24 hours, Speedtest.net (against the TWC site in Syracuse, and many others) is reporting 60-62Mbps down and 6.0-6.2Mbps up, an increase from 55/5.5Mbps we have had over the past few years,” Goldberg notes. He is subscribed to Time Warner Cable Ultimate, marketed in upstate New York as 50/5Mbps service.

We noticed the same thing late last week here in Rochester as speed test results now consistently top 60Mbps when using a Time Warner Cable-based server. The upstream speed increase was less visible, but still measurable.

Goldberg also reports ping times have dropped from the 18-22ms range to 13-15ms when using the Syracuse, N.Y. test site, which could also point to a more responsive Internet connection overall.

Cable companies occasionally deliver speeds that are actually faster than what they sell, known as overprovisioning, to improve customer satisfaction and boost their performance in the Federal Communications Commission’s ongoing national speed test program, designed to verify if providers are actually providing the speeds they are marketing to customers.

Are Time Warner customers in other areas seeing similar results? Report your findings in the comment section.

Empire Access Expands Fiber to the Home Service Across Western N.Y./Southern Tier

empireA Prattsburgh, N.Y. family-owned company has picked up where Verizon left off and is busily wiring up small communities across western New York and the Southern Tier with fiber to the home service, giving both Verizon and Time Warner Cable some competitive headaches.

Empire Access is concentrating its service in areas where Verizon FiOS will never go and Time Warner Cable maxes out at 50/5Mbps. The company recently launched service in downtown Batavia in Genesee County and will be launching serving in Big Flats later this year.

Empire promises no data caps or usage-based billing and offers 100/20Mbps at introductory prices ranging from between $45-65/mo. Gigabit broadband speed is also available.

Where it has franchise agreements with local communities, Empire also offers cable television packages ranging from $31.45-73.40, with up to 130 channels. The packages are not as comprehensive as those from Time Warner Cable, but customers may not mind losing a dozen or two niche cable channels to save up to $30 a month off what Time Warner charges. Nationwide home phone service is also an option.

Empire relies heavily on two public/non-profit fiber backbone networks to deliver service. The Southern Tier Network comprises a 235-mile long fiber backbone that runs through Steuben, Chemung and Schuyler counties. Further north, Axcess Ontario provides backbone connectivity across its 200+ mile fiber ring around Ontario County.

fiber backboneWith the help of public and non-profit broadband infrastructure, residents in small communities across a region extending from Sayre, Pa., north to Batavia, N.Y., will have another choice besides Verizon or Frontier DSL, Comcast or Time Warner Cable.

Residents in some communities, like Hammondsport and Bath — south of Keuka Lake, love the fact they have a better choice than Time Warner Cable. Empire has reportedly signed up 70 percent of area businesses and has more than a 20% residential market share in both villages after a year doing business in the Finger Lakes communities.

Empire targets compact villages with a relatively affluent populations where no other fiber overbuilder is providing service. It doesn’t follow Google’s “fiberhood” approach where neighborhoods compete to be wired. Instead, it provides service across an entire village and then gradually expands to nearby towns from there.

Most western New York villages are already compact enough to attract the attention of cable companies, predominately Time Warner Cable, which has an effective broadband monopoly. Verizon and Frontier offer limited slowband DSL, but Verizon has stopped expanding the reach of its broadband service and will likely never bring FiOS fiber to the home service to any western N.Y. community outside of a handful of suburbs near Buffalo.

empire-access-truckThe arrival of Empire reminds some of the days when the first cable company arrived to wire their village. Word of mouth is often enough to attract new customers, but a handful of local sales agents are also on hand to handle customer signups. From there, one of the company’s 80+ employees in New York handle everything else.

Bryan Cummings, who shared the story of Empire Access with us, “is pretty stoked.”

“Bye, bye Time Warner Cable,” Cummings tells Stop the Cap!.

Time Warner has treated most of western New York about as well as its service areas in Ohio, often criticized for not keeping up with the times. With fiber overbuilders Empire Access in the Finger Lakes region and Southern Tier and Greenlight Networks in Rochester, the fastest Internet options are not coming from the local phone and cable company anymore.

WSKG in Binghamton explores fiber broadband developments in the Southern Tier of upstate New York. Empire Access is providing the fast fiber broadband Verizon, Frontier, and Time Warner Cable won’t. (3:54)

You must remain on this page to hear the clip, or you can download the clip and listen later.

At present, Empire Access provides service in:

  • Village of Arkport
  • City of Batavia
  • Village of Bath
  • Village of Canisteo
  • Village of Hammondsport
  • City of Hornell
  • Village of Montour Falls
  • Village of Naples
  • Village of North Hornell
  • Village of Watkins Glen
  • Village of Waverly (N.Y.)
  • Boroughs of Sayre, Athens, and South Waverly (Pa.)
  • Borough of Troy (Pa.)

Communities on Empire’s radar for future expansion include Urbana, Dansville, Wayland and Cohocton. Further out, there is some consideration of larger cities like Corning and Elmira, as well as other towns in far northern Pennsylvania. With Empire’s expansion into Naples, the company also has many options in affluent and growing communities in Ontario County, south of Rochester.

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