Verizon has announced a deal with the city of Pittsburgh to begin rolling out FiOS services to city residents by the end of this summer.

This gives the city its first wired competitor to incumbent cable provider Comcast, whose franchise renewal is due at the end of this year.

Verizon FiOS will charge residents $47 per month for 250 standard definition channels plus local high definition channels, and $11 more for several dozen HD channels and more than a dozen sports networks.

Some suburban Pittsburgh customers can already access FiOS broadband products, as the company has wired parts of Banksville, Beechview, Bloomfield, Brookline, Carrick, East Hills, East Liberty, Friendship, Garfield, Highland Park, Homewood, Larimer, Lincoln-Lemington, Morningside, Overbrook, Point Breeze, Regent Square, Stanton Heights and Swisshelm Park.  Completing agreements to send video down the network to add a “cable TV” type service is expected to be a relatively simple process, according to Verizon officials.

[flv width=”428″ height=”240″]http://www.phillipdampier.com/video/WTAE Pittsburgh FIOS Arrives in Pittsburgh 7-6-09.flv[/flv]

WTAE Pittsburgh Reports on Verizon Agreement with the City of Pittsburgh

City residents can expect to see service available within the next six years, or the company will be subjected to fines by city officials.  But Verizon should have service available far earlier, starting with most of the North Side, some South Hills neighborhoods near suburbs, the business district downtown, and parts of Lawrenceville.

In return for a franchise agreement, Verizon will mimic Comcast’s agreement with the city, handing over 5% of gross revenue.  Verizon has also agreed to install dedicated fiber optic service between some city public safety buildings, $700,000 to upgrade the city’s video equipment, in part for local government proceedings, and 52 cents from each customer will be designated towards providing the viewer with public, educational, and local government channels.  A total of five channels will be reserved: two for government, one for public access, one for educational use, and a fifth reserved for the future.

More video on this story below.

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The price of providing lousy telephone and broadband Internet service in three New England states?  $2.8 million dollars in fines, and counting.

FairPoint Communications has been piling up fines and penalties for almost a year now, providing third world phone service with the competitive spirit of Hugo Chavez.  Maine, New Hampshire, and Vermont officials started fining the company after it blasted FairPoint’s “failure to meet certain standards for quality and timeliness of interconnections.”  FairPoint is required by law to open its networks to local competitors, and the results of those trying to purchase access at wholesale rates have been about as acceptable as those residential customers have dealt with since Verizon threw them under the bus and left town more than a year ago.

The company’s response?  It wants Maine’s Public Utilities Commission, for one, to waive the $845,000 it owes to local phone carriers.  In a filing with the PUC, it asks that waiving or modifying the payments will let it return its focus to fixing faulty networks to normal operating levels.

In other words, it was penalized for not doing its job and promises, if the penalties go away, it will do its job.  What happens if the penalties don’t go away?

FairPoint’s plans for broadband expansion in its service area were called into question when the company announced it has the potential to go bankrupt if bondholders don’t agree to waive certain payment requirements.

"The biggest problem is to figure out what to do with all of the money."

Charter Communications President and CEO Neil Smit steered his company straight into bankruptcy, and still got paid double his salary he earned the year before.

Charter, which filed for Chapter 11 bankruptcy protection March 27th in order to rid itself of a pesky $8 BILLION dollars in debt apparently is no reason Smit should not get a doubling of his salary, becoming the highest paid executive in St. Louis and walking home with briefcases stuffed with $7.4 million in salary, bonus, non-equity/”cash” incentives and other goodies and perks.

But this Money Party is just getting started for Smit and his pals at Charter.  In a convenient move just two weeks before the company ran crying for protection from big bad creditors, Charter established some new executive incentives designed to reward the same guy in charge of the company when it went bankrupt with up to a $6 million dollar bonus if he helps the company find its way off the courthouse steps and back into regular business.  But he also apparently deserves a bonus on top of his bonus — the company will also pay him an additional $2.5 million in annual performance bonuses if he manages to actually… do his job.

Those that will help him in that endeavor are also set to be richly rewarded.  The company hired Gregory Doody in May as “chief restructuring officer” for a bargain: just $60,000 A MONTH, or $720,000 a year.

Smit got paid a pretty penny for joining Charter in 2008 in the first place, before the crash and burn, as the St. Louis Business Journal reports:

On top of his $1.34 million salary, Smit’s updated employment contract in 2008 provided him with a $2 million signing bonus and about $1.2 million in retention bonus pay. He earned about $2.8 million through Charter’s performance-based bonus plan. Although equity awards were not included in calculating the Business Journal’s highest-paid list, they brought the book value of Smit’s total compensation package to nearly $15.4 million.

We at Stop the Cap! believe in public service and doing the right thing, so we’re offering our free advice to help Charter restructure itself out of bankruptcy: fire the guy who shepherded the company there in the first place.

Some additional details are emerging about the content partners and networks likely to participate in the joint Time Warner Cable-Comcast TV Everywhere (as long as you are a pay cable/telco video/satellite TV subscriber) partnership.

Turner Broadcasting (long since out of the control of Ted Turner, who was essentially escorted to the door years ago) is a key partner, which means TNT and TBS original series will be an essential part of the new service.  The network’s programming is already streamed to around 5,000 cable TV customers participating in a market trial.

Among the original shows the TNT and TBS networks air:

The Closer
Raising the Bar
Saving Grace
Leverage
My Boys
The Bill Engvall Show
Tyler Perry’s House of Payne

Also agreeing to participate in the venture: Rainbow Media, Scripps Networks and A&E Television Networks. That means you should also expect to see shows from these cable networks:

AMC
WE tv
The Independent Film Channel
Sundance Channel
HGTV
Food Network
DIY Network
Fine Living Network
Great American Country
A&E Network
History (Channel)
History International (Channel)
Bio (Channel)
Military History (Channel)
Crime & Investigation Network

The ultimate goal? To obliterate YouTube and Hulu TV as the most popular video websites in the United States.  Jeff Bewkes, CEO of Time Warner, fully expects TV Everywhere to be the nation’s largest and most popular destination for online video.

Some technical notes about accessing the service from Multichannel News:

At first, Comcast’s On-Demand Online content will be available only to customers who subscribe to both cable TV and broadband services, over only a Comcast-provided Internet connection through a subscriber’s cable modem, and via only the Comcast.net or Fancast.com portals. The MSO chose to “authenticate down to the subscriber level” to ensure the service will have a higher level of security out of the gate, said Comcast senior vice president of new media Matt Strauss.

Whereas Comcast had intended to provide On-Demand Online to subscribers solely through its own Web sites over its own broadband networks, Time Warner’s TV Everywhere imagines a decentralized way to let consumers log in to any participating sites to access content, including those run by the content owners.

Now Comcast has agreed to eventually allow video subscribers to access Time Warner’s content via TNT.tv and TBS.com, over any broadband connection they choose, although the specific mechanism for doing this hasn’t been determined yet.

Sources say an elderly Vienna man is dead after falling down in a confrontation outside his home with a Verizon FiOS technician.

Police say 79-year-old Bill Cornelious was unhappy with the installation of a new service.

The Verizon employee left the home at about 5 p.m. Wednesday, and the elderly man followed him out and tried to block the technician’s van from leaving the driveway.

Vienna police say the man tried to reach inside the van and grab the steering wheel. It was then that he fell and suffered the injuries that caused his death. WJLA-TV reports on this tragedy which occurred in late June and was brought to our attention today:

[flv width=”320″ height=”240″]http://www.phillipdampier.com/video/WJLA Washington – Elderly Man Dies After Encounter With FiOS Technician 06-18-09.flv[/flv]

It’s unfortunate that disputes over cable/television service can lead to these kinds of confrontations and tragic results.