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 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.

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.)

Maguire 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

Residents 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 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.

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.

AT&T U-verse broadband has not kept up with the times, limiting speed-craving customers to a comparatively slow 18-24Mbps that hasn’t changed much in a few years. But an AT&T employee claims in the company forums that is all about to change, with new broadband speeds up to 48-60Mbps downstream and up to 10Mbps upstream on the way.

The improvements will not just mean faster Internet speeds, but also better television service. U-verse is an IP-based network using a DSL variant to deliver a broadband pipe into customer homes. That pipe is divided up between television, broadband, and phone service. Previously, U-verse limited television viewing to a handful of concurrent television streams — a problem in large households with heavy TV and DVR usage. The network upgrade won’t eliminate that problem, but it will make it more rare with up to six channels viewed simultaneously.

AT&T customers will also eventually benefit from a switch to “cloud storage” DVR equipment, which will record and store TV shows remotely and stream them back to your television on-demand. This will allow AT&T to sell customers different levels of storage capacity and reduce customer inconvenience should they lose all of their recordings if a hard drive happens to fail.

The employee predicts the speed increases will begin rolling out in July, beginning in Texas.

Not all markets or customers will be able to get the fastest speeds offered by AT&T because U-verse is still dependent on copper wire between a customer’s home or business and the nearest fiber optic link. AT&T intends to boost speeds for some customers using pair bonding to eke more performance from their aging wiring. Customers already buying U-verse’s top 24Mbps tier will receive a free upgrade to 30Mbps when the new speeds are introduced.

Some leaked pricing for the new speeds (discounts may apply in bundled packages):

• 3/1Mbps — $41
• 12/1.5Mbps — $51
• 18/1.5Mbps — $56
• 30/3Mbps — $66
• 45/6Mbps — $86
• 60/6Mbps — $106
• 75/10Mbps — $121

No word on if AT&T plans adjust its barely enforced U-verse usage cap (250GB).

Tom Maguire

Recently, Stop the Cap! published stories about Verizon’s decision to discontinue traditional wired landline service for approximately 500 customers on Fire Island and offer them a wireless alternative called Voice Link. This is an important change for Verizon and our customers, and we wanted to clarify several points about the service and how Verizon is deploying it.

In places like Fire Island, New York and some communities along the Jersey Shore, such as Mantoloking and Seaside Heights, Verizon evaluated the extent of the damage to its facilities – which in many cases were literally washed away by Super Storm Sandy – and conducted extensive research before deciding the best course of action to take in terms of restoration.

Fire Island is a popular beach community with only a few hundred year-round residents, but the population swells each summer. Verizon’s equipment on the eastern side of the island was not too heavily impacted, so repairs were made and services restored.

On the western side of the Island, however, a large percentage of Verizon’s copper facilities were damaged beyond repair.

We studied the voice traffic on and off the island and where it was originating from on both Verizon’s wireline and wireless networks.  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.  This made it clear that people had already made the decision as to what technology works best. They had abandoned copper long before Sandy.

Where Sandy did the most damage on Fire Island.

Another part of Verizon’s analysis looked at the number of permanent residents on Fire Island, which number about 500, and the costs that Verizon would incur to install and connect new landline facilities there.  It would range from $4.8 million to more than $6 million. 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.

Verizon’s commitment is to provide our customers with voice service, and Voice Link is another way that Verizon is using technology to reliably deliver on that commitment for customers. And Voice Link does so by using wireless technology that has been proven effective over the last 20 plus years.

Verizon will maintain the copper network where it makes customer service and business sense to do so.  Please keep in mind that the vast majority of our copper customers have no issues at all with their service; we are only considering the universe of customers where the copper network is not supporting their requirements.  Again, the exception is the storm-impacted areas in the western portion of Fire Island and a few New Jersey Barrier communities where copper facilities were damaged beyond repair.  In these locations Voice Link will be the single voice option available to customers. Verizon will offer these customers the opportunity to use our state-of-the-art, tried and tested wireless network at the same rate (or better) that they pay today.

Here is how Verizon Voice Link works with existing home phones.

Some additional points for clarification:

• The service does offer a variety of popular calling features including Call Waiting and Caller ID with Name.  Some articles mistakenly reported to the contrary;
• Another article cited a Communications Daily piece that incorrectly reported 40,000 people participated in a blind test of Voice Link. Actually, that test group consisted of 20 people;
• Current Voice Link models include a rechargeable battery that offers 36 hours of standby and two hours of voice service. Future devices will work with standard AA batteries, giving customers an easy alternative for replacing batteries and maintaining communications in an extended power outage;
• Although the device is not presently data capable, the team is working to change that. Nevertheless we have always said that it was not Verizon’s original intent to use Voice Link for customers with DSL. If a customer had an issue with their copper and they had DSL, we would repair the copper.  Unfortunately Sandy changed these plans for a handful of customers on Fire Island and the New Jersey Barrier where the copper is beyond repair.

What’s the Deal With Copper?

In areas where Verizon’s fiber and copper network ran side-by-side, Verizon began to ask certain copper customers with a history of trouble to move their service to fiber. In some cases the equipment supporting the copper service was so outdated that we could not even find replacement parts because the equipment had been discontinued. The objective was to improve service quality and customer satisfaction using the best communications network, and the result was clear: the program has been very successful. More than 300,000 customers migrated to Verizon’s fiber-optic network.  These customers enjoy super-reliable, faster fiber at the same rates they were paying all along.

In non-fiber areas, Verizon developed Voice Link to take advantage of wireless technology to address voice customers served on the copper network who have had chronic repairs issues.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Verizon Voice Link Keeps Customers Connected After Hurricane Sandy 5-31-13.flv[/flv]

After Sandy hit, Verizon realized that wireless technology also would be an ideal solution for customers in areas the storm destroyed or severely damaged. It has helped us reconnect hundreds of people and businesses. Don’t take our word for it. See what these customers have to say. (3 minutes)

Tom Maguire is Verizon’s senior vice president of network operations support.

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

The New York Public Service Commission has granted limited approval for a Verizon Communications plan to replace traditional landline service on the western half of Fire Island with a wireless voice service some users complain is unstable and unreliable.

Verizon claims its landline network on Fire Island has been damaged irreparably in places, and argued it needed to immediately deploy a wireless alternative before the arrival of thousands of tourists on the island, a popular summer destination.

On May 3, Verizon asked the commission to approve the use of Voice Link, which provides fixed wireless phone service, anywhere in the state if the company can prove there is an equal competitor or if existing copper-based facilities are damaged or too costly to upgrade.

Stop the Cap! reminded local politicians, union representatives, and consumer advocates Verizon’s CEO earlier promised it would decommission its copper wire networks in rural areas in favor of wireless, mostly for financial reasons. The New York State Attorney General’s office took careful note of McAdam’s commitment to abandon copper in their objection letter to the commission.

Verizon CEO Lowell McAdam in 2012:

The vision that I have is we are going into the copper plant areas and every place we have FiOS, we are going to kill the copper. We are going to just take it out of service and we are going to move those services onto FiOS. We have got parallel networks in way too many places now, so that is a pot of gold in my view. And then in other areas that are more rural and more sparsely populated, we have got LTE built that will handle all of those services and so we are going to cut the copper off there. We are going to do it over wireless.

Verizon’s efforts to rush a tariff change without adequate public notice or formal hearings brought complaints from affected customers, unions, and area politicians.

The Communications Workers of America called Verizon’s emergency “self-made.” The company could have begun repair work on Fire Island as early as last November, but instead only came to regulators earlier this month with its Voice Link proposal, while much of the western half of the island remains out of service.

CWA officials are concerned Verizon is using Hurricane Sandy as an excuse to carry out its broader agenda of abandoning rural New York’s landline infrastructure in favor of wireless service.

“Playing on sympathy for the plight of customers whom it has left without service for more than six months, Verizon proposes to implement broad, generic rules that go to the core of its obligation to serve,” said CWA vice president Chris Shelton.

The union considers Verizon’s wireless alternative less adequate than the wireline facilities Verizon wants to abandon. The CWA wants the PSC to study Voice Link’s performance during times of peak cellular usage times, power outages, adverse weather, and inadequate reception.

Thomas Barraga, a legislator in Suffolk County, says his constituents with Voice Link service are already unhappy with its performance and reliability.

“Residents and business owners who had Voice Link installed after Sandy say the connection is unstable and unreliable, and doesn’t provide for DSL Internet or fax service,” Barraga wrote in a letter to the PSC.

“Internet service is so much a part of everyday life it should be consider a basic service and they should be mandated to provide this as well,” writes Fire Island resident Robert Gonzalez. “They should provide this for the same fees and usage rates as they had previously been charging.  As of today they are price gouging.  Prior to Sandy we paid approximately $50 per month for unlimited Internet access.  Now they are putting low limits on our usage for the same $50 per month with severe penalties for going over.  You can opt for higher usage plans at a much greater cost and they are not offering an unlimited plan.”

Stop the Cap! also continues to hear from Fire Island residents about their dissatisfaction with the service. Among the newest complaints we have received:

• “It doesn’t work with collect calls and you cannot dial “0” for operator assistance;”
• “I have to dial 10 digits for all calls, seven digit dialing no longer works even though it did before;”
• “Call Waiting and Caller ID often do not work, and my unit does not ring for incoming calls about 30% of the time and people have to keep calling me back;”
• “When you attempt to take a call when on the line with someone, you cannot get them back after answering a new call;”
• “I cannot use this with my home alarm system at all and the monitoring company keeps notifying police because they think my phone line was cut;”
• “If we had a major storm with three days of power being out, Verizon’s claim Voice Link will work for two hours without power means I would have to feed it up to 72 ‘AA’ batteries, costing more than what the phone line costs me every month;”
• “What does this do to our future? It makes us second class citizens without access to the Internet except through very expensive wireless capped usage plans that cost much more.”

The PSC ruled that allowing Verizon to deploy Voice Link on Fire Island during the peak tourist season will make sure adequate phone service is up and running as quickly as possible. But the commission also made it clear it is unwilling to approve Verizon’s request to extend the service further into rural New York without a thorough review of its performance and customer reaction.

Verizon casts off its rural landline network for some customers.

Verizon landline customers reporting problems with their service in Pennsylvania may be soon targeted for Verizon’s wireless landline replacement — Voice Link — according to two sources sharing an internal memo with Broadband Reports.

The May 7 memo states that a significant number “selected customers” will be migrated off Verizon’s copper landline network to the Voice Link wireless service. One of the sources recognized the move as an end run around regulators:

“It has become painfully obvious to both our employees and customers that Verizon wishes to divest themselves of all regulated services,” says the source. “Abandoning our regulated wire line customers in favor of fixed point LTE may seem like a clever move but it violates “The Negroponte Principle” and will ultimately bump-up against the immutable laws of spectrum conservation physics.”

“It’s a shame that corporations like Verizon can build a FTTCS based wireless empire with regulatory subsidies provided by their wireline customers and then force them onto the unregulated wireless side,” argues the insider. “Questions of ethics and legality abound and perhaps regulatory over-sight is warranted here.”

Verizon may not get too much oversight from Pennsylvania regulators hoodwinked by the telecom company in the past.

Voice Link is a voice-only wireless home phone replacement that lacks certain calling features, Caller ID with Name for one, and requires the homeowner to provide power (and backup batteries in the event of a power failure). Customers are also dependent on quality reception from the nearest Verizon Wireless cell tower and that it remains in service during severe weather events or prolonged power outages.

Some of the customers likely targeted are still waiting for DSL broadband service from Verizon. If those customers are identified as Voice Link prospects, they will be waiting for broadband forever because Voice Link does not support data services and Verizon cannot supply DSL over a scrapped landline network.

Stop the Cap! has also learned today that the Federal Communications Commission has no problem with Verizon’s unilateral action to switch landline customers to wireless.

A FCC representative told our reader Anne, who is currently fighting Verizon over its plans to abandon landline service on the New Jersey Barrier Island, that they consider Voice Link a functionally equivalent landline service. In a response that could have come directly from Verizon customer service, the FCC helpfully describes the new service Anne already understands and does not want:

Q. What if Verizon is NOT replacing copper with fiber, but is going strictly to wireless?  There will be no landlines whatsoever.  Is that acceptable?

A. “Yes that is acceptable and it is called Verizon Voice Link.  It is a wireless device that plugs into the telephone lines in your home, allowing customers the ability to use their home telephone to make and receive calls.” — FCC Representative Number : TSR54

“This second FCC response, like the first one, ignores the issue, is unprofessional and is insulting,” says Anne. “Obviously, I already know what Voice Link is.”