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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.

munifiber

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.

ATT-New-York-central-office-fire-300x349

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) 

AT&T, Verizon, Time Warner Cable Implicated In Content Delivery Network Slowdowns

fat cat attIf your YouTube, Netflix, or Amazon Video experience isn’t what it should be, your Internet Service Provider is likely to blame.

A consumer group today implicated several major Internet providers including Comcast, AT&T, Time Warner Cable and Verizon in an Internet slowdown scheme that prevented customers from getting the broadband performance they are paying for.

A study* of 300,000 Internet users conducted by Battleforthenet found evidence some of America’s largest providers are not adequately providing connectivity for Content Delivery Networks (CDNs) that supply high-capacity traffic coming from the Internet’s most popular websites.

Significant performance degradation was measured on the networks of the five largest American ISPs, which provide Internet connectivity for 75% of U.S. households.

“For too long, Internet access providers and their lobbyists have characterized Net Neutrality protections as a solution in search of a problem,” Tim Karr from Free Press told the Guardian newspaper, which had advance notice of the study. “Data compiled using the Internet Health Test show us otherwise – that there is widespread and systemic abuse across the network. The irony is that this trove of evidence is becoming public just as many in Congress are trying to strip away the open Internet protections that would prevent such bad behavior.”

freepressThe study revealed network performance issues that would typically be invisible to most broadband customers performing generic speed tests to measure their Internet speed. The Open Technology Institute’s M-Lab devised a more advanced speed test that would compare the performance of high traffic CDNs across several providers. CDNs were created to reduce the distance between a customer and the content provider and balance high traffic loads more evenly to reduce congestion. The shorter the distance a Netflix movie has to cross, for example, the less of a chance network problems will disrupt a customer’s viewing.

If technicians controlled the Internet, the story would end there. But it turns out money has gotten between Internet engineers with intentions of moving traffic as efficiently as possible and the executives who want to be paid something extra to carry the traffic their customers want.

That may explain why Comcast can deliver 21.4Mbps median download speeds for traffic distributed by a CDN Tier1 IP network called GTT to customers in Atlanta, while AT&T only managed to squeeze through around 200kbps — one-fifth of 1Mbps. It turns out AT&T’s connection with GTT may be maxed out and AT&T will not upgrade capacity to a network that sends AT&T customers more than twice the traffic it receives from them without direct compensation from GTT.

Internet traffic jam, at least for AT&T customers in Atlanta trying to access content delivered by GTT.

Internet traffic jam, at least for AT&T customers in Atlanta trying to reach content delivered by GTT.

An AT&T U-verse customer in Atlanta would probably not attribute the poor performance depicted in M-Lab’s performance test directly to AT&T because Internet responsiveness for other websites would likely appear normal. Customers might blame the originating website instead. But M-Lab’s performance results shows the trouble is limited to AT&T, not other providers like Comcast.

AT&T: Slow down, you move too fast.

AT&T: Slow down, you move too fast.

The issues of performance and peering agreements that provide enough capacity to meet demand are close cousins of Net Neutrality, which is supposed to prevent content producers from being forced to pay for assurances their traffic will reach end users. But that seems to be exactly what AT&T is asking for from GTT.

“It would be unprecedented and unjustified to force AT&T to provide free backbone services to other backbone carriers and edge providers, as Cogent et al seek,” AT&T wrote in response to a request from several CDNs to disallow AT&T’s merger with DirecTV. “Nor is there any basis for requiring AT&T to augment network capacity for free and without any limits. Opponents’ proposals would shift the costs of their services onto all AT&T subscribers, many of whom do not use Opponents’ services, and would harm consumers.”

* – When a copy of the study becomes publicly available, we will supply a link to it.

Correction: It is more accurate to describe GTT as a “Tier1 IP network” which supplies services to CDN’s, among others. More detail on what GTT does can be found here.

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.

What Happens When a Verizon Wireless Dealer Forgets to Hang Up: “Selling Lies!”

Wireless World of Emerson

Wireless World of Emerson

A Verizon Wireless salesman that left a voicemail message offering a customer a new service plan that could save her money forgot to hang up the phone when he finished his message and broke into song singing, “Lies, lies, lies, selling lies” while criticizing his co-workers for reneging on the savings he promises.

“David” from the “Verizon Wireless Store” called Kristin Capone because she had evidently bought a phone from him last year.

“I’m just calling my customers letting them know that earlier this month there were changes in the price plan and there is a chance I can save you money,” David offered.

After thanking her for her time, the employee at Wireless World of Emerson, a “Premium Verizon Dealer” in Emerson, N.J., did not bother to hang up, and had some choice words for Capone and his co-workers that Capone shared on YouTube.

“Lies! Lies! Lies!,” David sang. “Selling lies. Can’t save her a f@@@ing dime. Come in, we’ll save you some money. Just like that. She comes in, sees to one of you guys. You guys look in and say, oh no, there’s nothing we can do and then I end up looking like a dou@@e and then she won’t want to buy.”

“David” seems to acknowledge his bad attitude at the end of the message.

“I’m being a crabby car salesman.”

http://www.phillipdampier.com/video/Crabby Verizon Salesman Forgets to Hang Up.mp4

A public relations headache for Verizon Wireless as one of its “premium dealers” decides to dismiss promises of savings as “selling lies.” (Warning: Contains profanity.) (1:42)

Verizon is Still Pushing Voice Link Wireless Home Phone Service

Verizon Voice Link

Verizon Voice Link

The Communications Workers of America today claimed Verizon is refusing to repair broken landlines and is once again trying to steer customers to a controversial wireless landline replacement Verizon calls Voice Link.

“Verizon is systematically abandoning the legacy network and as a consequence the quality of service for millions of phone customers has plummeted,” Bob Master, CWA’s political director for the union’s northeastern region, told the Wall Street Journal.

The CWA will file public information requests this week with state regulators in New York, New Jersey and Pennsylvania seeking more detailed information about how Verizon is utilizing Voice Link.

Stop the Cap! has received several messages from Verizon customers over the last six months, most in New York City, that were offered Voice Link as a temporary solution to ongoing landline service problems including no dial tone, intermittently failing lines, and those with crosstalk or static problems.

“It is crazy how long Verizon can take to fix a phone line in Manhattan,” wrote our reader Helen. “The problems started in February and we lost service for what turned out to be almost a month. We had four broken repair appointments and every date they promised it would be fixed it wasn’t. Can you imagine a whole month without a phone line?”

Helen tells us that Verizon started leaving messages on her voicemail apologizing for the problems, but offered Voice Link, a wireless landline replacement in the interim.

“At least it was something I told my husband, but he didn’t like the idea because Verizon would probably forget about us after putting it in,” she said. “I won the argument but we lost in the end because Voice Link never worked properly.”

Verizon FiOS is coming to Fire Island.

Helen complained Voice Link made phone calls difficult to understand and often her phone didn’t ring when calls came in.

“Everyone sounded like they were underwater and it was hard to understand people,” she said. “Callers would tell me they heard five rings when calling me, but I only heard one, if that.”

“We switched to Time Warner Cable phone service and it was installed fast,” she said. “But then the fax machine wouldn’t work right so we still need Verizon after all.”

Helen’s apartment building is not yet wired for FiOS because of problems the building management allegedly had with Verizon technicians in the past. She is willing to sign up, but thinks Verizon is not doing itself any favors treating customers badly when their old landlines fail.

“It makes you think how long it will take them to show up if a rat chews through a fiber cable next year.”

The fact Verizon offers Voice Link to customers while phone repairs go uncompleted for extended periods worries the CWA, who accused Verizon of “steering” customers to the wireless replacement.

Verizon spokesman Rich Young says about 13,000 customers have decided to keep Voice Link as a permanent solution to their landline woes and have never gone back to their old copper service.

http://www.phillipdampier.com/video/Verizon Voice Link A Reliable Alternative.mp4

Verizon calls its Voice Link wireless landline replacement a reliable alternative in this promotional video produced in 2013. (2:24)

Thomas MacNabb, Verizon’s director of operations, also defends Voice Link, claiming it represents Verizon giving customers the best possible service when weather-related outages arise.

But retired AT&T executive W. Kenneth Lindhorst counters Voice Link is no upgrade, relying on old 1990s technology, and does not work with credit card machines, faxes, security and home medical monitoring, or wireless data.

“They come in with the implication that they are upgrading services in the neighborhood. They do not tell you that they are switching from a regulated basic to an unregulated service,” Lindhorst said. “They don’t like to be regulated by government. They don’t like their customers to be protected by government.”

Lindhorst is part of Don’t Hang Up On New Jersey, a group fighting Verizon’s efforts to replace Superstorm Sandy-damaged telephone lines with Voice Link. Two bills in the New Jersey legislature: A2459/S278 are seeking a one year moratorium on Verizon replacing damaged copper wiring with any alternative technology, including wireless, until further studies can be done.

http://www.phillipdampier.com/video/Verizon Voice Link Hanging Up On NJ.mp4

Verizon Voice Link is “hanging up on New Jersey” according to a consumer advocacy group. An interview with retired AT&T executive W. Kenneth Lindhorst suggests Verizon wants to use the service to escape regulatory oversight. (2:00)

Verizon New Jersey: “It’s Good to Be King,” But Not So Good If You Are Without FiOS

Verizon's FiOS expansion is still dead.

Verizon’s FiOS expansion is over.

Some New Jersey residents and businesses are being notified by insurers they will have to invest in costly upgrades to their monitored fire prevention and security systems or lose insurance discounts because the equipment no longer reliably works over Verizon’s deteriorating landlines in the state.

It’s just one of many side effects of ongoing deregulation of New Jersey’s dominant phone company, Verizon, which has been able to walk away from service and upgrade commitments and oversight during the Christie Administration.

Most of the trouble is emerging in northwest and southeast New Jersey in less-populated communities that have been bypassed for FiOS upgrades or still have to use Verizon’s copper wire network for security, fire, or medical monitoring systems. As Verizon continues to slash spending on the upkeep of its legacy infrastructure, customers still relying on landlines are finding service is gradually degrading.

“The saving grace is that so many customers have dropped Verizon landlines, there are plenty of spare cables they can use to keep service up and running when a line serving our home fails,” said Leo Hancock, a Verizon landline customer for more than 50 years. “I need a landline for medical monitoring and besides cell phone service is pretty poor here.”

Hancock’s neighbor recently lost a discount on his homeowner’s insurance because his alarm system could no longer be monitored by the security company due to a poor quality landline Verizon still has not fixed. He spent several hundred dollars on a new wireless system instead.

Kelly Conklin, a founding member of the N.J. Main Street Alliance said he is required by his insurer and local fire department to have traditional landline service for his business’ sprinkler system, which automatically notifies the fire department if a fire starts when the business is closed. He has also noticed Verizon’s landlines are deteriorating, but he’s also concerned about Verizon’s prices, which the company will be free to set on its own five years from now, after an agreement with the state expires.

tangled_wires“The deal allows Verizon to raise basic landline phone rates 36 percent over the next five years and it allows them to raise business line rates over 20 percent over the next five years,” said Seth Hahn, a CWA staff representative. Beyond that, the sky is the limit.

Most of New Jersey wouldn’t mind the loss of traditional landlines so much if they had something better to replace them. Thanks to the state’s relatively small size, at least 2.2 million residents do. Verizon has managed to complete wiring its fiber to the home service FiOS to 358 towns in the state. Verizon hoped fiber optics, although initially expensive to install, would be infinitely more reliable and easily upgradable, unlike its aging copper-wire predecessor. Unfortunately, there are 494 towns in New Jersey, meaning 136 communities are either stuck using Verizon DSL or dial-up if they don’t or can’t receive service from Comcast.

So how did so many towns get left behind in the fiber revolution? Most of the blame is equally divided between Verizon and politicians and regulators in Trenton.

Verizon did not want to approach nearly 500 communities to secure franchise agreements from each of them, dismissed by then Verizon CEO Ivan Seidenberg as a “Mickey Mouse procedure.” Verizon wanted to cut a deal with New Jersey to create a statewide video franchise law allowing it to offer video service anywhere it wanted in the state.

A November 2005 compromise provided a way forward. In return for a statewide video franchise that stripped local authority over Verizon’s operations, Verizon would commit to aggressively building out its FiOS network to every home in the state where Verizon offered landline telephone service.

The entire state was to be wired by 2010. It wasn’t. Two events are responsible: The arrival of Gov. Chris Christie in 2010 and the retirement of Mr. Seidenberg the following summer.

Christie

Christie

Christie’s appointments to the Board of Public Utilities, which used to hold Verizon’s feet to the fire as the state’s telecommunications regulator, instead put the fire out.

“They were Christie’s cronies,” charged several unions representing Verizon employees in the state.

The then incoming president of the BPU was Dianne Solomon, wife of close Christie associate Lee Solomon. The BPU is a technocrat’s paradise with hearings and board documents filled with highly technical jargon and service quality reports. Solomon brought her only experience, as an official with the United States Tennis Association, to the table. Administration critics immediately accused the governor of using the BPU as a political patronage parking lot. When he was done making appointments, three of the four commissioners on the BPU were all politically connected to the governor and many were accused of lacking telecommunications expertise.

When communities bypassed by FiOS complained Verizon was not honoring its commitment, the governor and his allies at the BPU proposed letting Verizon off the hook. Instead of demanding Verizon finish the job it started, state authorities decided the company had done enough. So had Verizon’s then-incoming CEO Lowell McAdam, who has since shown almost no interest in any further expansion of fiber optics.

But the working-class residents of Laurel Springs, Somerdale, and Lindenwold are interested. But they have the misfortune of living in more income-challenged parts of Camden County. So while Cherry Hill, Camden itself, and Haddonfield have FiOS, many bypassed residents cannot even get DSL from Verizon.

(Image relies on information provided by the Inquirer)

(Image relies on information provided by the Inquirer)

The Inquirer recently offered readers a glimpse into the life of the FiOS-less — the digitally redlined — where the introduction of call waiting and three-way calling was the last significant telecommunications breakthrough from Verizon.

“All Verizon offers here is dial-up,” Dawn Amadio, the municipal clerk in Laurel Springs, said of the Internet service, expressing the frustration of many residents and local officials. “That’s why everybody has Comcast. What does Verizon want us to do? Live in the Dark Ages?”

Or move to a more populated or affluent area where Verizon’s Return on Investment requirements are met.

The state government could have followed Philadelphia, which demanded every city neighborhood be wired as part of its franchise agreement with Verizon in 2009. So far, Verizon is on track to meet that commitment with no complaints by next February.

Further out in the eastern Pennsylvania suburbs, Verizon got franchise agreements with the towns it really wanted to serve — largely affluent with residents packed relatively close to each other. Verizon signed 200 franchise agreements in Bucks, Delaware, Montgomery, and Chester Counties in Pennsylvania. It managed this without a statewide video franchise agreement. But at least 34 towns in those counties were left behind.

A deal between Verizon and Trenton officials was supposed to avoid any broadband backwaters emerging in New Jersey.

But state officials also allowed a requirement that mandated Verizon not skip any of 70 towns it sought guarantees would be upgraded for FiOS, mostly a mix of county seats, poor neighborhoods, and urban areas in the northern part of the state. Verizon could wire anywhere else at its discretion. Trenton politicians never thought that would be an issue because FiOS would sell itself and Verizon could not possibly ignore consumer demand for fiber optic upgrades.

But Verizon easily could after its current CEO found even bigger profits could be made from its prestigious wireless division. McAdam has shifted the bulk of Verizon’s spending out of its wireline and fiber optic networks straight into high profit Verizon Wireless. If he can manage it, he’d like to shift New Jersey’s rural customers to that wireless network as well, with wireless home phone replacements and wireless broadband. Only state oversight and regulatory agencies stand in the way of McAdam’s vision, and in New Jersey regulators have chosen to sit on the sidelines and watch.

That is very bad news for 99 New Jersey towns where FiOS is available to fewer than 60 percent of residents (Gloucester Township, Mount Laurel, Deptford, Pennsauken, and Voorhees, among others.)

Another 135 New Jersey towns, including a group of Delaware River municipalities along Route 130 in Burlington County and most of the Jersey Shore, have no FiOS at all. Other than in the county seats, Verizon has not extended FiOS to any other towns in Ocean, Atlantic and Cape May Counties, reports the newspaper.

Verizon never promised New Jersey 100% fiber, comes the response from Verizon spokesman Lee Gierczynski. Instead of future expansion, Verizon will step up its efforts to get customers away from the cable company in areas where Verizon offers FiOS service. The company says it spent $4 billion on FiOS in New Jersey and it is time to earn a return on that investment.

But local communities have already discovered Verizon earning fringe benefits by not offering fiber optic service.

verizonfiosIn Laurel Springs, customers have largely fled Verizon for Comcast, which is usually the only provider of broadband in the area. A package including broadband and phone service costs less than paying Verizon for a landline and Comcast for Internet access, so Verizon landline disconnects in the town are way up.

Mayor Thomas Barbera discovered that once Verizon serves fewer than 51% of phone customers in town, it can claim it is no longer competitive and devalue its infrastructure and assets to virtually zero and walk away from any business property tax obligations.

“Once they skip,” Barbera told the Inquirer, “we don’t get [Verizon’s] best product, and then they say we can’t compete and we don’t owe you our taxes. It’s good to be king.”

Correction: With our thanks to Verizon’s manager of media relations Lee Gierczynski for setting the record straight, we regrettably reported information that turned out to be in error. The amended Cable Act that brought statewide video franchising to New Jersey never required Verizon to build out its FiOS network to every home in New Jersey where it offered landline telephone service. Instead, the agreement required Verizon to fully build its fiber network to 70 so-called “must-build” municipalities

Gierczynski also offers the following rebuttal to other points raised in our piece:

No one is disputing the fact that Verizon is spending less on its wireline networks.  The spending is aligned with the number of wireline customers Verizon serves, which has declined by more than 50 percent over the last decade.  The implication that this decreased investment is leading to a deterioration of the copper network is what is wrong. Over the last several years, Verizon New Jersey has spent more than $5 million just on proactive copper maintenance initiatives that have led to significant decreases in service complaints. The BPU’s standard for measuring acceptable service quality is the monthly customer trouble report rate – which is the best overall indicator of network reliability.  The BPU’s standard is 2.3 troubles per 100 access lines.  Over the last several years, Verizon’s performance across the state has consistently been below that standard, even in places in northwest and southeast New Jersey primarily served by copper infrastructure.  The 2014 trouble rate for southeastern New Jersey towns like Hopewell (0.3 troubles per 100 lines) and Upper Deerfield (0.34 per 100 lines) are well below the BPU’s standard.

Verizon is on track to meet its build obligations in those municipalities by the end of this year as statutorily obligated to do (not 2010 as you wrote) and also has deployed its network to all or parts of 288 other communities across New Jersey.   Today Verizon offers its video service to more customers than any other single wireline provider in the state.

 

No More Subsidies on iPhones at Verizon or AT&T: Buy Your Own Phone on a Payment Plan

next edgeAT&T and Verizon Wireless are ditching subsidies for the popular (and expensive) Apple iPhone in favor of straight installment payment plans.

9to5Mac reports Apple has sent a memo to employees outlining major changes in how iPhones will be sold to AT&T and Verizon Wireless customers.

Apple iPhones sold via AT&T and both Apple’s retail and online stores will shift exclusively to AT&T’s Next financing plans this month and end device subsidies. AT&T Next allows customers to buy a device at retail price and pay it off in 20, 24, or 30 installments on their AT&T bill. The primary benefit of the Next plan is it permits customers upgrade to a newer device after 12, 18, or 24 installment payments. For now, customers transitioning away from their existing plan to Next will be able to keep their unlimited AT&T data plan.

iphone6Verizon Wireless is also planning to drop its two-year subsidy programs, perhaps entirely across all devices, as early as the end of this summer. That will force Verizon Wireless customers onto the Edge installment payment program unless they are willing to pay for a device upfront.

But Verizon will tighten the screws even more on iPhone users by blocking the Edge Up feature for Apple phones. Instead of being eligible for an early upgrade after 18 months, Verizon will commit its iPhone customers to a full two-year waiting period or until the phone is completely paid off. Magnanimously, Verizon will let the customer keep the phone after they pay it off completely. It is unclear if Verizon will allow their legacy unlimited data customers to participate in the Edge program without forfeiting their unlimited data plan.

For many customers, this will represent a distinction without much difference. Phone subsidies have always been effectively paid back to the wireless carrier through artificially high service plan rates charged over the length of a two-year contract. The installment payment plan brings the cost of the phone subsidy out into the light where a customer will see (and pay) a separate installment payment for their device instead of having the subsidy’s recovery buried in the price of service. But Verizon has clearly sought constraints on its iPhone customers who aggressively pursue upgrades at the appearance of any new iPhone model. Going forward, they will have to pay off any remaining installments owed on their old phone before upgrading to a new one.

No Patriot Act? Snuggly the NSA Security Spy Bear Might Just End Up Working for Verizon or AT&T

snuggly

http://www.phillipdampier.com/video/United States of Surveillance.mp4

United States of Surveillance: Don’t Worry… We’re Watching You… ALL OF YOU. (2:29)

http://www.phillipdampier.com/video/Mitch McConnell and Snuggly the Security Bear Beg to Spy.mp4

“After tracking your every move and spying lovingly on each and every one of you, I feel like I know you all personally, because I do!”

Is this the end of our domestic spying pal, Snuggly the Security Bear? Most likely not. Snuggly will probably still be in business and up to his usual tricks, he just may have to work with Verizon or AT&T or some kind of NSA-corporate partnership. (1:27)

A Tale of Two Territories: Frontier Plans Upgrades for Newly Ex-Verizon/AT&T Customers While Legacy Areas Suffer

frontier-fast-buffalo-large-2The new CEO of Frontier Communications is promising more fiber to the home service and advanced ADSL2+ and VDSL2 service to dramatically boost Internet speeds… if you happen to live in a Verizon territory Frontier is planning to acquire in Texas, California, or Florida. For Connecticut customers that used to belong to AT&T, Frontier also plans to spend money to further build out AT&T’s U-verse platform to reach more suburban customers not deemed profitable enough to service by AT&T.

For legacy Frontier customers in other states? Frontier plans nothing beyond what it already provides — usually dismally slow DSL.

Speaking to investors during the JP Morgan Global Technology, Media and Telecom Conference, Frontier CEO Daniel McCarthy said upgrades offer the company new earnings opportunities, but a closer analysis reveals those benefits will only reach customers in areas where Verizon and AT&T already did most of the work and spent the money required to build advanced network infrastructure.

Verizon has spent millions upgrading customers in Texas to its FiOS service and has a significant fiber to the home presence in California and Florida. Because fiber infrastructure is already largely in place, Frontier will not have to spend huge sums to build a new network. Instead, it will spend incrementally to expand service to nearby service areas.

Mediocre broadband in upstate New York.

Mediocre broadband in upstate New York.

“The FiOS penetration is much higher, specifically in Texas, but we think there’s a lot of opportunity to drive FiOS penetration in Florida and California,” McCarthy said. “We see that as a big opportunity.”

Fierce Telecom notes Frontier won’t have to make a large investment outside of installing new DSLAMs in remote terminals or local Central Offices to deliver higher speeds over copper. Frontier will likely depend on VDSL2 technology on short copper line lengths in suburban areas and ADSL2+ in rural locations.

“I think in this case it might be replacing some electronics, but it’s not a heavy lift from a construction perspective,” McCarthy said. “By putting in a shelf and next-generation capabilities, whether it’s VDSL, ADSL2+, or all the different flavors you can use to serve the different loop lengths in a market you achieve the ability to bring a fresh product set into an area at a fairly low cost.”

While Frontier is willing to invest money in areas that are easy to upgrade, it has proven itself reluctant to consider major upgrades in its legacy service areas where it acquired traditional copper-based landline networks.

“The new states will clearly have new growth opportunities,” McCarthy said. “In Florida there has been a revival of housing in certain areas and subdivision growth in Texas and California.”

In Connecticut, Frontier will build on the acquired AT&T fiber/copper network with a modest expansion of U-verse.

frontier u-verse“We actually see growth opportunity in Connecticut,” McCarthy said. “As we go through and look at the Connecticut property, one of the things that have been a recent development from a technology perspective allows us to serve lower density parts of the state of Connecticut with U-verse product that was limited by densities and loop lengths in the past.”

Although the company often touts millions in upgrade investments, most legacy service areas see only modest service improvements, while the company continues to score very poor in customer satisfaction, especially in states like West Virginia, Ohio, Pennsylvania and New York. With Frontier’s ongoing focus on newly acquired service areas, long-standing customers in other states are feeling neglected.

In upstate New York, the prevalence of Frontier Communications’ low speed DSL on the company’s legacy copper network has dragged down overall broadband speed ratings to some of the lowest in the country. Frontier territory Rochester, N.Y., in particular, is now among the worst cities in the northeast for overall broadband speed performance, now rated at just 21.42Mbps. The national average is 36.22Mbps. In comparison, Buffalo scores 24.31Mbps, Cleveland: 22.57Mbps, and NYC 55.56Mbps.

Verizon Broadband Customers: Your Security May Have Been Compromised

Phillip Dampier May 14, 2015 Consumer News, Verizon No Comments
Tell me everything about me.

Tell me everything about me. (Image: BuzzFeed)

Since April 22, a website programming error has been responsible for exposing the personal information of up to nine million Verizon broadband customers.

BuzzFeed News reported a vulnerability in Verizon’s account portal allowed anyone capable of spoofing an IP address of a current customer to get instant access to account information and arrange a password reset to take full control of the customer’s account.

BuzzFeed was able to verify the vulnerability with the help of cooperating Verizon customers and immediately notified Verizon about the problem before publishing the story. The vulnerability has since been corrected, but not before three weeks of ‘open access’ to Verizon customer account information to those proficient at manually changing their IP address:

Within a few hours of the tip, and despite having no technical background, with the explicit permission of several Verizon account holders, I was able to convince Verizon customer service to reset an account password, giving me total control of a Verizon account. It was surprisingly easily done.

It took me only two downloads, copy and pasting some information from an email, and a few interactions with Verizon customer support. It was just a matter of following step-by-step instructions. In other words, if you can follow a recipe, you could have probably gotten a Verizon password reset.

[…] These pieces of information — name, telephone numbers, and email — were all I needed (and more frighteningly, all a malicious hacker would have needed) to convince Verizon customer service that I was a customer in need of a password reset.

Even worse, customer support gave me that reset information despite the customer having a security PIN set up.

With that information, a hacker could gain enough personal insight to trick other businesses into giving up additional personal information.

“Once it was brought to our attention, our experts immediately investigated the issue and repaired the error within hours,” a Verizon spokesperson told BuzzFeed. “We appreciate the responsible manner in which Buzzfeed brought this matter to our attention. Addressing issues like this collaboratively is a constructive addition to our continuous actions to safeguard the security of customers’ information.”

Verizon hoped to reassure customers the security damage was minimal, telling BuzzFeed. “We have no reason to believe that any customers were impacted by this, other than those who’s information was used by Buzzfeed. If we discover that any were, we will contact them directly.”

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