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Communications Workers of America Says Verizon Snuck Voice Link Into New York City, Hudson Valley

Phillip Dampier June 26, 2013 Consumer News, Public Policy & Gov't, Verizon 2 Comments

cwa letterThe Communications Workers of America says Verizon’s attempts to introduce Voice Link service as a landline replacement has gone well beyond Fire Island and the Catskills.

In a fiery letter dated today, Chris Shelton, vice president of CWA District One says Verizon has been quietly installing dozens of the wireless devices in the Hudson Valley and attempted to install them in one 81-unit senior residence in the heart of New York City, until residents protested they were in danger because Voice Link does not support the medical monitoring devices they use to live independently. After rejecting the wireless service, the union alleges Verizon left the residence without any phone service at all.

Shelton says customers are not getting full disclosure of what they are signing up for when they accept Voice Link and Verizon is using the devices as a cost-saving measure as the company allows its landline facilities to deteriorate into disrepair.

“There was no ‘Superstorm’ at work in Monticello and no emergency or unforeseen circumstances – just the easily predictable, routine deterioration of facilities that Verizon could not be bothered to maintain and an influx of customers who arrive every year at exactly the same time,” Shelton said. “In other words, Verizon had ample opportunity to plan for the maintenance and repair of these customers’ needs in a timely manner, but simply chose not to schedule the necessary work.”

Shelton says Voice Link units are also turning up in the Boroughs of Queens and Brooklyn in certain circumstances.

“Given the unambiguous directives of the Commission’s Order, Verizon’s ongoing efforts to install VoiceLink beyond the western portion of Fire Island are outrageous, ill-considered, and flout the Commission’s authority,” writes Shelton. “The Commission should immediately order Verizon to cease the unauthorized abandonment of wireline facilities and the replacement of wireline service with VoiceLink in Monticello and surrounding communities or any other part of the state, beyond the limited portions of Fire Island covered by the conditional authorization.”

Thus far, the Public Service Commission has not publicly responded to the allegations and the regulator has not asked Verizon for an explanation about their installation of Voice Link in areas outside of the western part of Fire Island, where the Commission has granted them interim authority to run the service as the sole landline replacement.

Stop the Cap! received word Verizon may have a statement regarding these matters shortly. We will update readers with any new developments.

Updated: Stop the Cap! Learns Verizon Allegedly Trying to Sneak Wireless Voice Link Into the Catskills

exclusiveStop the Cap! has received information from customers and anonymous employees that Verizon Communications is allegedly attempting to pressure seasonal residents in the rural Catskill Mountain region of upstate New York to give up their landline phone service in favor of the company’s wireless alternative, Voice Link, in potential violation of an order from the New York Public Service Commission limiting its deployment to sections of Fire Island.

Two Verizon customers who own vacation property in the mountainous region of upstate New York in and around Monticello separately contacted Stop the Cap! after doing online research on the wireless product Verizon representatives attempted to sell them.

Both reported they were pressured by Verizon’s service/repair department to accept the landline alternative after attempting to reconnect their seasonal telephone service. In one case, a customer had to call Verizon three times to attempt to reconnect her disconnected phone line after a missed appointment.

“They wanted nothing to do with coming out here to put my old phone line back in service,” says the customer, one of two we have been asked to leave unidentified in light of certain forthcoming legal proceedings. “I got transferred twice and finally ended up talking to someone pushing something called Voice Link.”

Verizon Voice Link: The company's landline replacement, works over Verizon Wireless.

Verizon Voice Link

The customer tells us she never heard of Voice Link and Googled information about it, ending up on Stop the Cap!’s website which has maintained ongoing coverage of the product’s introduction on Fire Island.

“I called them back and told them they must be mistaken because I don’t own property on Fire Island and they told me it was no mistake and that they were preparing to distribute Voice Link all across the area and I was lucky to be among the first before they ran out,” the customer tells us.

The second customer, who has since taken his complaint to the Attorney General of New York, claims he was offered the same service from Verizon a week later.

“When I called to get my dial tone back, Verizon transferred me to a special repair representative who wanted to install Voice Link instead,” he tells us. “It was explained I would be better off with Voice Link and would get more calling features for less money and get national calling, free voicemail, and all of these other extras.”

The customer tried to turn the offer down, but Verizon made it difficult to refuse.

“You really had to argue with them and say no at least a dozen times,” our reader tells us. “The reason I said no is that I tried that same type of service from Verizon Wireless and it sucked. I raised my voice and they finally agreed to reconnect my phone.”

We have also received e-mail from individuals claiming to be Verizon employees represented by the Communications Workers of America indicating Verizon delivered a large shipment of Voice Link units for deployment in the Catskills, despite the fact Verizon is apparently not authorized by the PSC to offer the service to customers outside of the western half of Fire Island, and only on an interim basis.

Verizon’s use of Voice Link in upstate New York will almost certainly raise questions with regulators who negotiated the agreement with Verizon over the limited use of Voice Link during its evaluation, especially if customers report they were not offered the service only as an option.

If the allegations are true, Verizon may be signaling its confidence it will succeed adopting Voice Link as a mandatory rural landline replacement in parts of New York State and isn’t waiting for final approval from the PSC.

Verizon’s Jarryd Gonzales denied Verizon is responsible for any wrongdoing, noting nothing in the PSC’s Fire Island proceeding restricts Verizon’s ability to offer Voice Link service as an option, which he confirmed the company was doing in Monticello. (See PSC order here, reference page five: “Finally, the amendment will not apply in areas where Verizon offers the alternative wireless service as an optional service [i.e., traditional wired facilities are still in place].”)

“Verizon’s VoiceLink is an innovative and proven product that already is providing quality and reliable voice telephone service to residents of Fire Island and other areas,” Gonzales tells Stop the Cap! “It is a repair option for our customers who have had continued and lingering difficulties with their copper-based telephone service.  It uses wireless technology which has proven to be resilient, and which millions of people use millions of times each day.”

[Update 4:25pm ET]

The New York Attorney General’s office has announced they have filed an Emergency Petition with the New York Public Service Commission to prohibit Verizon from “illegally installing” Voice Link service in direct violation of its tariff.

Attorney General Eric Schneiderman has asked the Commission to sanction Verizon for its actions detailed in this formal complaint:

The Attorney General’s Office has recently learned that Verizon intends to require customers outside of the Fire Island pilot area seeking to have their wireline service installed accept instead wireless Voice Link service, notwithstanding the Commission’s May 16 Order. According to reports by representatives of the Communications Workers of America, Verizon has delivered a pallet load of Voice Link devices to its Monticello Installation/Maintenance Center, and has instructed its technicians in that region to provide summer seasonal customers returning to Catskill vacation homes, who have long been received Verizon wireline service, only Voice Link service.

The union’s report is corroborated by two complaints of Verizon seasonal customers who have been told Voice Link will be installed instead of repairing their wire line telephone service. Only by firmly refusing Voice Link were both customers able to keep their wireline service.

Unlike Fire Island, wireline network damage from Superstorm Sandy cannot be used as an excuse for substituting Voice Link for wireline service in the Catskills, where the storm had limited impact. Instead, it appears that in the Catskills, Verizon has chosen to pursue the company’s business strategy in blatant disregard for the Commission’s Order.

The Commission’s May 16 Order could not have been clearer in limiting Verizon’s substitution of Voice Link for wire line service to western Fire Island, to enable evaluation of this unproven technology on a pilot basis.

Verizon’s provision of Voice Link outside the confines of western Fire Island is illegal, and its open defiance of the Commission’s May 16 Order must be met with effective sanctions.

[Update 4:33pm ET]

affidavit

[Article further updated at 5:17pm ET to include statement from Verizon Communications.]

When Do You “Need” Faster Speeds? When Competition Arrives Offering Them

broadband dead end“We just don’t see the need of delivering [gigabit broadband] to consumers.” — Irene Esteves, former chief financial officer, Time Warner Cable, February 2013

“For some, the discussion about the broadband Internet seems to begin and end on the issue of ‘gigabit’ access. The issue with such speed is really more about demand than supply. Most websites can’t deliver content as fast as current networks move, and most U.S. homes have routers that can’t support the speed already available.” — David Cohen, chief lobbyist, Comcast Corp., May 2013

“We don’t focus on megabits, we don’t focus on gigabits, we focus on activities. We go to the activity set to get a sense of what customers are actually doing and the majority of our customers fit into that 6Mbps or less category.” — Maggie Wilderotter, CEO, Frontier Communications, May 2013

“It would cost multiple billions” to upgrade Cox’s network to offer gigabit speeds to all its customers. — Pat Esser, CEO, Cox Communications, Pat Esser, chief executive of Cox Communications Inc., January 2013

“The problem with [matching Google Fiber speeds] is even if you build the last mile access plant to [offer gigabit speeds], there is neither the applications that require that nor a broader Internet backbone and servers delivering at that speed. It ends up being more about publicity and bragging. There has been a whole series of articles in the paper about ‘I’m a little startup business and boy it is really great I can get this’ and my reaction is we already have plant there that can deliver whatever it is they are talking about in those articles, which is usually not stuff that requires that high-speed.” — Glenn Britt, CEO, Time Warner Cable, December 2012

“Residential customers, at this time, do not need the bandwidth offered with dedicated fiber – however, Bright House has led the industry in comprehensively deploying next-generation bandwidth services (DOCSIS 3.0) to its entire footprint in Florida – current speeds offered are 50Mbps with the ability to offer much higher. We provision our network according to our customers’ needs.” – Don Forbes, Bright House Networks, February 2011

‘Charter [Cable] is not seeing enough demand to warrant extending fiber to small and medium-sized businesses — and certainly not to every household.’ — “Speedier Internet Rivals Push Past Cable“, New York Times, Jan. 2, 2013

Unless you live in Kansas City, Austin, in a community where public broadband exists, or where Verizon FiOS provides its fiber optic service, chances are your broadband speeds are not growing much, but are getting more expensive. The only thing innovative coming from the local phone or cable company is a constant effort to convince customers they don’t need faster Internet access anyway.

At least until a competitor threatens to shake up the comfortable status quo.

Time Warner Cable claims they are perfectly comfortable offering residential customers no better than 50/5Mbps, except in markets like Kansas City (and soon in Texas) where 100Mbps is more satisfying. Why is a glass Time Warner claims is full to the brim everywhere else in the country only half-full in Kansas City? Google Fiber might be the answer. It offers 1,000/1,000Mbps service for less money than Time Warner used to charge for 50Mbps service, and Google is also headed to Austin.

special reportAT&T scoffed at following Verizon into the world of fiber optic broadband, where broadband speeds are limited only by the possibilities. Instead, they built their half-fiber, half-Alexander Graham Bell-era copper wire hybrid network on the cheap and ended up with broadband speeds topping out around 24Mbps, at least in a perfect AT&T world, assuming everything was ideal between your home and their central office.

At the time U-verse was first breaking ground, cable broadband’s “good enough for you” top Internet speed was typically 10-20Mbps. Now that incrementally faster cable Internet speeds are available from recent DOCSIS 3.0 cable upgrades, AT&T is coming back with an incremental upgrade of its own, to deliver around 75Mbps.

It is still slower than cable, but AT&T thinks it is fast enough for their customers, except in Austin, where Google Fiber provoked the company to claim it would build its own 1,000Mbps fiber network to compete (if it got everything on its Christmas Wish List from federal, state, and local governments).

Are you starting to see a trend here? Competition can turn providers’ investment frowns upside down and get customers faster Internet access.

Wilderotter: Most of our customers are satisfied with 6Mbps broadband.

Wilderotter: Most of our customers are satisfied with 6Mbps broadband.

In rural markets were Frontier Communications faces far less competition from well-heeled cable companies, the company can claim it doesn’t believe most of its customers need north of 6Mbps to do important things on the Internet. If they did, where would they go to do them?

Where Comcast and AT&T directly compete, major Internet speed increases are a matter of “why bother – who needs them.” Comcast is more generous where it faces down Verizon FiOS. AT&T also knows the clock is ticking where Google Fiber is coming to town.

Verizon FiOS, Google Fiber, and a number of community-owned fiber to the home broadband networks like EPB in Chattanooga and Greenlight in Wilson, N.C. seem more interested in boosting speeds to build market share, increase revenue to cover their expenses, and make a marketing point their networks are superior. They respond to requests for speed upgrades differently — “why not?”

Verizon figured out offering 50/25Mbps service was simple to offer and easy to embrace. Two clicks on a FiOS remote control and $10 more a month gets a major speed upgrade for basic Internet customers that used to get 15/5Mbps service. Verizon management reports they are pleased with the number of customers signing up.

In Chattanooga, Tenn. EPB Fiber offered gigabit Internet service because, in the words of its managing director, “it could.” The community-owned utility did not even know how to price residential gigabit service when it first went on offer, but the costs to EPB to offer those speeds are considerably lower over fiber to the home broadband infrastructure.

Broadband customers in Chattanooga, Kansas City and Austin are not too different from customers in Knoxville, Des Moines, and Houston. But the available broadband speeds in those cities sure are.

LUS Fiber in Lafayette, La. changed the song Cox was singing about their ‘adequate’ broadband speeds. Earlier this year, Cox unveiled up to 150/25Mbps service to cut the number of departing customers headed to the community owned utility, already offering those speeds.

Convincing Wall Street that spending money to upgrade networks to next generation technology will earn more money in the long run has failed miserably as a strategy.

“Competitors have been overbuilding, investors are wondering where the returns are,” said Mark Ansboury, president and co-founder of GigaBit Squared. “What you’re seeing is an entrenchment, companies leveraging what they already have in play.”

With North American broadband prices rising, and some cable companies earning 90-95% margins selling broadband, one might think there is plenty of money available to spend on broadband upgrades. Instead, investors are receiving increased dividend payouts, executive compensation packages are swelling as a reward for maximizing shareholder value, and many companies are buying back their stock, refinancing or paying off debt instead of pouring money into major network upgrades.

That is not true in Europe, where providers are making headlines with major network improvements and speed increases, all while charging much less than what North Americans pay for broadband service.

UPC Netherlands is Holland's second biggest cable company and it is in the middle of a broadband speed war with fiber to the home providers.

UPC Netherlands is Holland’s second biggest cable company and is in the middle of a broadband speed war with fiber to the home providers.

In the Netherlands, the very concept of Google Fiber’s affordable gigabit speeds terrify cable operators like UPC Netherlands, especially when existing fiber to the home providers in the country are taking Google’s cue and advertising gigabit service themselves. UPC rushed to dedicate up to 16 bonded cable channels to boost cable broadband speeds to 500Mbps in recent field trials, without giving any serious thought to the cable operators in the United States that argue customers don’t need or want the faster Internet speeds fiber offers.

“We had to address it head on very recently because of the fiber (competition)” said vice president of technology Bill Warga. “The company is called Reggefiber in the Netherlands. What they’re touting is a 1Gbps service, [the same speed] upstream and downstream. We came out with 500Mbps service. We had to build a special modem because (DOCSIS) 3.1 chips aren’t out yet. We had to double up on the chips in the modem and put it out there because we had to have a competing product, if anything just in the press. That was a reaction but that tells you how quickly in a marketplace that something can move.”

Despite that, groupthink among cable industry attendees back home at the SCTE Rocky Mountain Chapter Symposium agreed that Google Fiber was a political and marketing stunt, “since the majority of users don’t need those types of speed.”

Who does need and want 500Mbps? Executives at UPC, who have it installed in their homes, admits Warga. But cost can also impact consumer demand. Currently, the most popular legacy UPC broadband package offers 25Mbps for €25 ($32.50). The company now sells 60/6Mbps for €52,50 ($48.75), 100/10Mbps for €42,50 ($55.25) or 150-200/10Mbps for €52,50 ($68.25).

Warga also admits the competition has put UPC in a speed race, and boosted speeds are coming fast and furious.

“They’ll come in and say they’re 100, or 101Mbps we’ll come back and say we’re 110 or 120, or 130Mbps,” Warga said. “It’s a bit of a cat and mouse game, but we always feel like we can be ahead. For us DOCSIS 3.1 can’t come soon enough.”

[flv width=”640″ height=”367”]http://www.phillipdampier.com/video/WSJ Cable Broadband Speeds 1-13.flv[/flv]

The Wall Street Journal investigates why cable companies are getting stingy with broadband speed upgrades while gigabit fiber networks are springing up around the country. (4 minutes)

Stop the Cap!’s Rebuttal to Verizon: Fire Island Doesn’t Want Voice Link

Last week, Verizon’s Tom Maguire responded to some of our earlier coverage about Verizon’s decision to abandon landline service on portions of Fire Island devastated by last fall’s Hurricane Sandy. We have received several complaints from readers about our decision to grant space to Verizon to present their views without reciprocation. While we understand those concerns, Stop the Cap! believes readers deserve both sides of a discussion that AT&T and Verizon will soon seek to have with customers across many of their rural service areas. For that reason, we invited Verizon’s participation. This is our response:

Phillip "Since when do regulated utilities get to dictate the quality of service customers receive?" Dampier

Phillip Dampier

Raise your hand if you want Verizon’s Voice Link to replace your traditional telephone service and lose your only wired broadband connection.

Almost no one has. Despite the arguments from Verizon Communications and AT&T that wireless is the answer to troublesome copper wiring and maintaining rural telephone service, dozens of Fire Island, N.Y. customers have been sufficiently provoked to file comments with state regulators, making it clear they want no part of the loss of their landline and its accompanying, affordable broadband service. In more than 135 public comments with the Public Service Commission at press time, Stop the Cap! could only find one comment from a Fire Island resident who had no issues with Verizon’s wireless landline replacement. He was upset Verizon had not wired a nearby yacht club for broadband service.

Both AT&T and Verizon have publicly advocated that rural customers would be better served moving from traditional wired landline service to their respective wireless 4G LTE networks. AT&T characterizes it as “an upgrade” that switches customers to an “all IP” 21st century network. Verizon has been less bold in its public policy statements, framing its position mostly in economic terms  — does it make sense to invest large sums to upgrade or repair damaged infrastructure that serves a relatively small number of customers?

Until recently, customers have been free to make the choice between a landline and wireless service themselves. Now, the residents of Fire Island and some barrier islands off the coast of New Jersey have a very different choice: They can accept Verizon’s Voice Link landline replacement, sign up for cell service that has proved troublesome in both areas, or give up phone service altogether. Verizon has made it clear it is not prepared to replace the destroyed infrastructure on portions of the islands, it will not invest in major upkeep and repairs to network facilities that may have been compromised but are still functioning for now, and will likely never offer its fiber FiOS network in the affected areas.

Stop the Cap! has expressed repeated concern that the decision to abandon wired infrastructure in favor of wireless is based primarily on profit motives, is short-sighted, and represents a downgrade in the quality of an important, regulated utility service, particularly in rural and out-of-the-way places that have few, if any alternatives. Fire Island is shaping up to argue our case, based on the testimony of those actually living and working on the island.

Customers Don’t Want the ‘Solution’ Verizon is Offering

Voice Link is not proving a welcome permanent resident on Fire Island for many customers.

The reasons are clear: inadequate wireless service is common on the island, Voice Link does not perform or sound as good as the landline it replaces, and Verizon’s wireless broadband alternative will cost many residents their unlimited-use DSL service in favor of a wireless capped option that could cost more than $100 a month.

Letter to affected Verizon customers on Fire Island.

Letter to affected Verizon customers on Fire Island.

Verizon’s strongest argument is that landline service has fallen out of favor in the United States, with customers increasingly disconnecting home phones in favor of cell phones. If Verizon’s statistics are correct, 80 percent of the voice traffic on the island is already handled by Verizon Wireless. (Verizon does not specify if that traffic comes from permanent residents or temporary visitors, a point of contention with residents.)

verizonMaguire was very careful to limit Verizon’s advocacy of Voice Link in terms of its capacity to handle voice calls. That is because Voice Link is currently incompatible with a whole range of important services that have worked fine with traditional landlines for years.

Maguire’s words are important: “Verizon’s commitment is to provide our customers with voice service,” — the kind you had in the late 70s. Voice Link fails faxing, home medical monitoring, home alarm systems, dial-up service, credit card transactions, and home satellite equipment that connects to the telephone network.

Voice Link is no upgrade for Fire Island. It represents turning back the clock, especially for broadband customers.

Maguire claimed in his editorial the company was only considering Voice Link for the universe of customers where the copper network was not supporting their requirements, with the exception of Sandy-impacted Fire Island and some New Jersey barrier islands. But that does not tell the whole story. In a filing with the New York State Public Service Commission, Verizon makes it clear it intends to introduce the same solution in other parts of New York:

It also seeks to deploy Voice Link in other parts of the State, both as an optional service in areas where the company also offers tariffed wireline local exchange service, and (subject to the Commission’s approval) as a sole service offering in particular locations and circumstances.

While Verizon has sought to appease regulators by volunteering to offer an equal level of service for the same or less money, there are questions about whether a regulator has any oversight authority over Voice Link.

“It is a remarkable concept in utility regulation that a regulated utility may determine that costs are unreasonable and as a result choose to provide alternative, and potentially unregulated service to affected customers,” said Louis Barash of Ocean Beach. “Verizon proposes to permit the PSC to regulate that activity, but it is not clear that the Commission has such authority. And it certainly isn’t clear that the Commission would have any authority to reverse its decision, or otherwise to sanction the company, if Verizon failed to comply with its undertakings.”

Broadband & Competition Matters: Forcing Customers Off Unlimited DSL in Favor of Near-Exclusive, Usage-Capped, Verizon Wireless Broadband

Offering broadband is a vital part of any telephone company’s strategy to add and keep customers. Yet Verizon’s DSL customers on the western half of Fire Island will have their broadband service canceled unless wired service (copper or fiber) is available. Verizon’s only alternative is a usage-capped, prohibitively expensive Verizon Wireless mobile data plan that may or may not perform well on the signal-challenged island. There is literally nowhere else for customers to go.

Verizon’s own statistics confirm none of its wireless competitors handle significant traffic on and off the island.

Maguire: “A multimillion dollar investment with no guarantee that residents of the island will even subscribe to our services makes no economic sense. In fact, that’s probably why Verizon is the sole provider on the island. None of the companies we compete with in other parts of New York offer services on the island.”

Maguire’s evidence:

“The company discovered that 80 percent of the voice traffic was already wireless.  If other wireless providers were factored in, it is likely that the percentage is closer to 90 percent.”

That means Verizon’s wireless competitors collectively have a traffic share of less than 10%.

Verizon’s Plan & Public Safety

no serviceResidents advise visitors they better have Verizon Wireless and a robust phone that works well in challenging reception areas if they expect to use it while on the island. AT&T, Sprint, and T-Mobile customers are often out of luck. That poses an immediate and direct threat to public safety, according to public safety officials.

“The cellphone service on Fire Island progressively gets worse every year as more and more people are bringing smartphones out there,” explained Dominic Bertucci, chief of the Kismet Fire Department. “There are some days where you can barely get a signal.”

The Brookhaven Town Fire Chiefs Council, which represents the leadership of 39 fire departments and fire companies in the region is vehemently opposed to Voice Link and considers it a safety menace, especially during frequent summer power outages when the island’s population is at its peak.

“Without a copper wire phone service, a service that still functions even during a power failure, how can we insure that the residents can call for help?” asks president John Cronin. “How will they call for the lifesaving services that are provided by the fire and EMS units of Fire Island? The corporate desire for greater profit cannot be made at the expense of the safety of the residents of Fire Island.”

“Wireless service is not reliable,” adds Fair Harbor resident Meredith Davis. “Imagine being in an emergency and having ‘spotty’ reception which happens out there all the time on cell phones. That is not safe and not okay.”

Verizon disclaims legal responsibility for failed 911 calls in its Voice Link terms and conditions.

Verizon disclaims legal responsibility for failed wireless 911 calls in its terms and conditions. The most Verizon owes you is a refund of a portion of your monthly service charges.

“If you are unfamiliar with Fire Island, there is very little medical service and the only way off the island is a scheduled ferry service or, for some people who have permits and trucks, a very long drive,” explains lifelong Fire Island resident Nora Olsen. “When someone needs to be rushed to the hospital, they are evacuated by helicopter, which makes timely emergency calls of the essence to save lives. So you can imagine how important it is to have reliable phone service. It should be up to the individual to decide if they want to switch to a wireless service. They should not be forced into it by Verizon. The people who are most likely to want to stick with the phone service they have been used to all their life — senior citizens — are the most likely to need to use the phone to call for help.”

A number of residents also claim Verizon has overblown the real extent of damage on the island and is not operating in good faith.

“In the larger communities of Ocean Beach and Seaview, I have met no one yet that has their connectivity lost,” said resident Karen Warren. “So for Verizon to assert that the infrastructure is largely destroyed and to repair it would be an enormous expense is simply not true. To add insult to injury, before coming out and finding out that our lines were in fact intact, Verizon offered to ‘replace’ our existing DSL data service with LTE Jetpak wireless broadband. The performance and reliability with only a single device connected was horrendous.”

“[Verizon is] pushing us toward a higher-cost and lower-value solution,” Warren concluded.

Getting specific information about the current state of Verizon’s network on Fire Island and repair/replacement costs are hard to come by. Verizon filed an application with the PSC declaring much of the information confidential or a trade secret, refusing to share it with the public. The company was concerned some might access the Public Service Commission website, find the case number about Fire Island, navigate to the specific Verizon filing containing information about their infrastructure… and then vandalize it.

The worst affected communities on Fire Island.

The worst affected communities on Fire Island.

Barash suspects Verizon might be hiding something, especially considering the company requested to bypass usual waiting periods and public notification requirements:

Verizon asserts that it would cost “$4.8 million for a voice-only digital loop carrier system comparable to the networking serving the eastern part of the island.” It is by no means clear, however, that such a system is the minimum required to restore/repair the western part of the system to the service it had pre-storm. Certainly Verizon’s application makes no representation to that effect. This estimate apparently contemplates an entire new system for the western portion of Fire Island, notwithstanding that a meaningful percentage of the copper wire system is still operational.

Moreover, Verizon’s position on the required scope of repairs has been a constantly shifting target. Verizon apparently advised Commission Staff, and Staff repeated at the April 18 Commission Hearing, that the western Fire Island telephone system was “damaged beyond repair by the storm.” Verizon apparently has abandoned that claim; this application indeed is premised on the assumption that the system can be repaired. Furthermore, in its first (May 3) submission to the Commission, Verizon stated that “five of the six cables that run between Fire Island and the mainland – the five that serve the western portion of the Island – were also badly damaged by the storm.” Just a week later, it has abandoned that claim as well, and instead in its amended Certification asserts “Five of the six cables that run throughout Fire Island were badly damaged by the storm.” It is hard to accept at face value Verizon’s estimated repair costs when even at this late date it does not seem to have a handle on exactly the damage that needs repair.

A full Hearing, with notice to affected customers, is necessary to develop facts sufficient to make such determinations and to be reasonably certain the Commission is acting based on reasonably verifiable facts.

Residents deserve a full voice and full disclosure in discussions that will directly impact their vital telecommunications services for years to come. Verizon’s corporate officials will not have to live with the results. Neither will the staff at the PSC.

Stop the Cap! has chosen to directly participate in the New York State Public Service Commission regulatory process and has filed two formal comments thus far. The first outlines Verizon’s greater strategy to abandon landline service in rural areas outlined by Verizon CEO Lowell McAdam in 2012. We also provided the Commission the prices Verizon Wireless intends to charge Verizon DSL customers switching to wireless broadband service. The second objects to Verizon’s excessive request for secrecy and exposes cell coverage issues on Fire Island.

Sick of Paying Time Warner Cable for More Sports Channels? Sue!

sportsnetTime Warner Cable’s decision to spend $11 billion to broadcast Los Angeles Lakers and Dodgers games at an estimated cost of $50-60 a year per subscriber is the subject of a class action lawsuit from fed up customers.

The plaintiffs are upset cable subscribers across Southern California will have to cover the cost of the 20-year deal with no option to opt-out of the sports channels because they are bundled into the most popular cable package.

The suit, filed this week in Superior Court alleges at least 60 percent of subscribers have no interest in the sports programming, but will collectively cover $6.6 billion of the deal and never watch a single game.

Time Warner Cable is also accused of forcing AT&T U-verse, Charter Cable, Cox Cable, DirecTV and Verizon FiOS to sign restrictive contracts that compel the companies to include the sports channels on the basic lineup.

Ironically, Time Warner Cable itself regularly complains about the increasing cost of programming and contract terms that force it to bundle expensive sports channels inside the basic tier instead of offering customers optional, added-cost sports programming packages.

Both sports teams are also named as defendants in the suit because they were aware that all subscribers would face rate increases as a result of the deal.

“TWC’s bundling results in Defendants making huge profits, much of which is extracted from unwilling consumers who have no opportunity to delete unwanted telecasts,” the complaint states.

The suit claims there is no legitimate reason Time Warner Cable and the sports teams could not have offered the new networks only to customers that wished to pay for them. The suit wants the bundling of the sports networks stopped and customers given refunds for the higher television bills that resulted.

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