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Six Months After Sandy, Verizon Abandoning Wired Network in Mantoloking, N.J.

Hurricane-SandySix months after Hurricane Sandy struck the northeastern United States, a significant number of Verizon customers are now learning they will never get their landline service back.

Mantoloking is the first town in New Jersey — but not the last — that will no longer be able to get landline service from the telephone company.

In its place, Verizon offers Voice Link, a home phone replacement that works exclusively over the Verizon Wireless network.

About 30 customers have signed up for the service after being without a home phone for a half a year.

The device looks like a wireless router, with an antenna and several jacks on the back to deliver service over your home’s existing telephone wiring. Instead of connecting with Verizon’s wired network, the unit receives a signal from the nearest Verizon Wireless cell tower to make and receive telephone calls.

Verizon is enticing customers to use this device instead of repairing its damaged network by promising free installation, unlimited nationwide calling and support for 911 and basic phone features like Caller ID and voice mail. For now, the service will not cost any more than a wired landline phone.

For Verizon’s bean counters, Voice Link is an inexpensive alternative to replacing copper wiring with FiOS fiber optic service. Verizon previously announced that maintenance on its aging copper wire network was becoming increasingly expensive.

“It acts just like a regular phone,” Tom Maguire, Verizon’s senior vice president of national operations told the Asbury Park Press. “There’s a dial tone. It has 911 capability, so if you dial 911 the emergency services guys are going to know exactly where you are.”

But members of Verizon’s unions who have had hands-on experience testing Voice Link suggest it isn’t everything Verizon says it is. The International Brotherhood of Electrical Workers’ Local 824 points out Voice Link was not intended to serve just anybody. It will deliver a voice-only service unsuitable for faxing, DSL, or data communications of any kind.

Mantoloking is located on New Jersey's barrier island.

Mantoloking is located on New Jersey’s barrier island.

Stop the Cap! has also heard from Verizon customers directly affected by the forced migration to wireless, and many are unhappy about it.

“This is the death knell for wired broadband in areas bypassed by cable along coastal New Jersey,” shares Dale Smith. “We lost our Verizon landline and DSL service during Sandy and have had nothing but a cell phone for the last six months because Verizon has dragged its feet.”

Smith says a Verizon manager told him the company was “evaluating certain service areas” for an “exciting new wireless product” instead of repairing or replacing the company’s wired network.

“While they were ‘evaluating,’ we were getting no dial tone and huge cell bills from Verizon — good for them, but not for us.”

Smith had a chance to view Voice Link in action and thinks it represents a Verizon wolf in sheep’s clothing.

“It sounds remarkably better than a cell phone, which tells you something about how much effort manufacturers of smartphones spend on voice calling, but that is where the good ends and the problems begin,” Smith said. “The most annoying is no caller ID with name and fairly frequent call delays and failed calls.”

Smith says the Caller ID displays the caller’s number, but not name – a feature he relied on heavily. He found about 30 percent of test calls either took more than 10 seconds to start ringing, or never rang at all.

“Sometimes the calls would time out and other times you would just sit and listen in silence until the phone at the other end finally started ringing,” Smith said.

He also worries about call reliability.

“What happens if you are in a marginal signal area or the cell tower gets overcongested and starts dropping calls, or the power goes out at the cell tower? You can’t use your cell phone either in that case.”

Anne contacted us after complaining to the Federal Communications Commission that Verizon is dumping its reliable landline network for unreliable wireless, and is frustrated the FCC does not seem to understand what is going on in New York and New Jersey.

“The response from the FCC doesn’t even bother to recognize that Verizon isn’t going to fiber service from copper, but is relying on very unreliable wireless,” Anne tells Stop the Cap! “For a vulnerable area such as the barrier island, wireless will likely be useless during a disaster/big emergency, especially where electricity goes out.”

replaceThe FCC’s short response to Anne’s detailed complaint:

If Verizon wishes to replace the copper wiring with fiber it is strictly their business desicion (sic).  — Representative Number : TSR54

“I can’t believe this email is a product of the United States government,” Anne told us. “Why does the FCC exist at all?  It is a complete waste of taxpayer money.”

In addition to filing a complaint with the FCC, Anne has tried to help her elderly mother get her home phone back on the barrier island that was damaged by Hurricane Sandy. As of a week ago, every utility, except Verizon phone service, has been restored.

“Trying to get a straight story from Verizon has been impossible,” Anne said. “What a nightmare.”

The landline network is dead.

The landline network is dead.

Jim Mudd also takes care of his parents who are headed back to the New Jersey coast in an area that still lacks Verizon phone service after Sandy washed away utility infrastructure. New poles have been placed and the power is back, but Verizon is nowhere to be found.

“Our local town officials tell us Verizon was hinting we might end up with Voice Link as well, although nothing formal has been announced,” Mudd writes. “This would be a major problem for us, because Voice Link will not work with our home alarm system or my parents’ medical monitoring service.”

Mudd says Verizon confirmed to him that data services of any kind, including faxing or credit card processing is not possible with the first version of the service, although Verizon said it was exploring better options in the future.

“After waiting a half a year for Verizon to restore my home phone, I hope they pardon me for not waiting around for them,” Mudd said. “We signed up with Comcast the moment they got service back, but they know they have a working monopoly here now, especially with Verizon signaling it wants to pull out of anything that is not wireless.”

“What annoys me is Verizon wanted rate increases back in the 1990s and on to pay for upgrading their network and replace it with fiber,” Mudd adds. “We paid those surcharges or higher rates like everyone else and we are going to get nothing to show for it. Don’t replace the copper, but don’t abandon us with wireless either. We paid for something better: fiber.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Asbury Press Following-Sandy-destruction-Verizon-switches-all-wireless-service 5-2-13.flv[/flv]

Verizon’s Tom Maguire demonstrates the company’s Voice Link landline replacement, courtesy of the Asbury Park Press.  (1 minute)

Frontier’s Latest Gambit: Frank the Buffalo Is Company’s First-Ever Mascot

Frontier's new mascot

Frontier’s new mascot

I’m sure more than a few readers work for a company with a marketing department that churns out advertising and imagery that leaves you shaking your head wondering what they were thinking.

There are some employees at Frontier Communications who are head-scratching this week as the company unleashes “Frontier’s First Ever Spokesman.”

His name is Francis Abraham Buffalo (his friends get to call him “Frank.”) He’s a… buffalo.

An internal memo obtained by Stop the Cap! informs employees Frank is prepared to bulldoze his way through “the clutter and get consumers buzzing.”

“Think of the Aflac duck and the Geico gecko,” a Frontier executive writes. “People have a truly positive association with them that translates into a positive feeling for those companies.”

But can a new mascot really change perceptions about a company more than the quality of the products or services a company provides (or doesn’t)?

For the record, your editor has never been particularly moved by either the duck or the gecko, and I, along with many other Americans, stopped watching television commercials years ago with the advent of the DVR. I have also never bought a product or service based on anything other than its merits and price. Frontier’s buffalo will not change that.

The mascot search involved a nationwide focus group of at least 800 customers and non-customers who were shown a series of “try-outs” involving lip-synched ducks, pigs, and various other creatures you may have last encountered as roadkill.

“Frank was the top choice, lifting our preference rating over the competition by 8 points and decreasing the competition by 3 points.  That’s a net 11 point increase for Frontier and solid support that we’re on the right path,” the company trumpets.

frontierOf course, their cable competitors can always suggest while Frontier is busy playing with animals, they are delivering far faster broadband service and a better package of phone, broadband, and television service that does not involve a third-party satellite dish stuck on your roof.

Even some Frontier employees were less than enthusiastic about the endeavor, already predicting the response ads from the competition.

“I thought the pig would’ve been a better choice,” writes one. “I can just see the competition running ads about not getting ‘Buffaloed’ by Frontier!”

Most of the excitement among employees seems to emanate from the office that envisioned the campaign and spent a lot of money to make it happen.

“A landmark decision in the continuing evolution of Frontier,” jokes a Frontier worker less than thrilled with the result.

Even Frontier executives admit that Frank might be a big, fat target:

“We have also heard some concerns from our employees that we are proactively addressing in the campaign so our competitors won’t take advantage of our new brand spokesperson.”

“Frank will be a boffo buffalo. A solid, truth-talking machine that doesn’t like fuss or tricks – and neither do we.   We play it straight — price guarantees and no contracts make it easy for consumers to understand our products and services.  So if anyone asks, Frank is not here to “buffalo” or trick anyone (call Cable if you want that!).  He doesn’t deal with BS or malarkey, and that means no hidden fees, no surprises.”

Phillip "It's actually an American bison" Dampier

Phillip “It’s actually an American bison” Dampier

Frontier is asking for advice on how to make Frank a better buffalo and offer any additional feedback. At Stop the Cap! we are always willing to help, so we publicly offer advice for our hometown phone company.

  1. The American buffalo is actually the American bison, but that probably sounds too French (it is actually Greek, but nobody wants to get too close to Greece these days). The bison’s story is remarkably similar to phone companies like Frontier. It once roamed across the American landscape in great herds but was targeted to near extinction. Just like your landline. It still maintains “near threatened” status, and is only gradually making a comeback with the help of conservation efforts. While our ancestors shared their lives with the bison, most people today will only meet one in a zoo or park. We are unsure why Frontier would want to associate itself with an animal best known in the past and unlikely to be seen today.
  2. Lip-synching animals (and babies) has become cliché. We were not too impressed with the voice talent Frontier decided to use for their animals either. Instead, check out Telus, western Canada’s biggest phone company. They turn animal wrangling into an art form, using various critters in their ads for phone, broadband, and wireless service. Telus compliments their animal friends with Canadian musicians to visually and musically deliver whatever message the company wants to share.
  3. While Frontier may have eliminated some of its old tricks like contract termination, equipment, service protection, and surcharge fees from customer bills, many of us have long memories of the surprise steep cancellation fees charged when dropping landline service that we kept for 20+ years. Others found Frontier’s inadequate DSL only slightly less annoying than the $100+ service termination fee thrown on the last bill. Some of those fees are still being charged to customers, including a particularly silly broadband account service order charge that still stings departing customers. It is hard to accept Frontier’s new marketing messages when the company is still baiting the traps.
  4. Frontier’s reputation problem does not come from poor advertising. It comes from a poor selection of products and services. Frontier until recently has simply refused to keep up with the reality of today’s broadband market. Sorry, basic DSL will no longer cut it, particularly when a competitor arrives. Cable can still out-class Frontier’s broadband products even after upgrades to ADSL2+ and VDSL. Frontier bills are still loaded with surprise surcharges and extras that raise the out-the-door price, sometimes even higher than what cable charges. The more important question to ask focus groups is why people do business with Frontier. Is it because they have to or they want to?

Frontier still does not evoke “cutting edge” anything. Frontier FiOS, inherited from Verizon, is the child nobody wants to talk about.

For years, Frontier only offered ADSL at speeds that stopped keeping up with cable a decade ago, even in large metro areas like Rochester, N.Y. When the company advertised “up to” in association with broadband speeds, it meant it: advertise up to 12Mbps but deliver service as slow as 3.1Mbps. With VDSL, 25Mbps might be doable, but cable already offers 30/5 or 50/5Mbps that is a sure thing.

Frontier’s landline service is generally reliable and works even with a power outage if you have a wired phone. But the company charges too much for a phone line many people are now jettisoning in favor of their cell phone and the company is still pushing long distance calling plan bundles that are now irrelevant. Does anyone under 35 know what a toll-call is?

Frontier’s “television” service for most customers is a third-party reseller agreement with a satellite provider with its own contract and conditions. Exciting? Not exactly.

There isn’t much to see here. AT&T and Verizon have spent money to earn money. The only major success story from AT&T’s landline business is its U-verse platform. Verizon FiOS delivers the most formidable competition cable operators like Time Warner Cable and Cablevision have seen. Even CenturyLink has invested in Prism, a fiber to the neighborhood system that can deliver a true triple-play package of services that give customers a reason to stay.

Frontier has Frank the Buffalo and some long-overdue technology upgrades that probably won’t win back a lot of customers.

So what are the strengths Frontier can sell?

  1. In most markets, Frontier has no hard limit on broadband usage. That is an attractive selling point where cable operators slap usage caps on customers. Usage caps can and do trigger customer defections;
  2. Frontier phone service is generally more reliable than cable or Voice over IP. Talk to customers in storm-struck areas who lost power and cable, but their phone line kept on working;
  3. Frontier ADSL2+ and VDSL can outperform rural cable operators who have either oversold their shared network or don’t offer higher DOCSIS 3 speeds yet;
  4. Frontier Wi-Fi, if vastly expanded, can be a useful free add-on and selling tool in areas served by cable operators that do not offer the service. But Frontier Wi-Fi hotpots have to be more commonly encountered to make a difference.

Above all, Frontier must keep upgrading its network to stay competitive. Once you lose customers, they can be extremely hard to get back. For many of us, establishing an account with the phone company meant significant installation fees and several days before a crew would turn up to connect service. Frontier knows perfectly well going back to the phone company after leaving is a high hurdle many never attempt.

The best mascot a company like Frontier can adopt are real customers and employees talking about their satisfaction with the changes Frontier is making. Without that, the customers that left will probably always think of Frontier as yesterday’s news. Using an American buffalo that neared extinction itself is probably not going to change that perception.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Frontier Animal Mascot Tryouts 4-13.flv[/flv]

Here are Frontier’s animal mascot tryouts. (1 minute)

NY: Verizon Asking to Report Your Payment History to Credit Agencies; Wants New Fees

Phillip Dampier April 23, 2013 Competition, Consumer News, Public Policy & Gov't, Verizon Comments Off on NY: Verizon Asking to Report Your Payment History to Credit Agencies; Wants New Fees

Verizon-logoVerizon Communications has filed separate requests with the New York State Public Service Commission that would report customers’ payment histories to credit reporting agencies, share your payment history with competing providers, and increase phone bills statewide to recoup expenses related to construction costs.

Verizon Wants to Influence Your Credit Score

One of the most substantial changes proposed by Verizon is the deregulation of privacy requirements that limit the amount of information the phone company can share with credit reporting agencies about your past payment history and whether you could represent a credit risk to the next telecommunications company you choose to do business with.

New York regulators originally enforced limits on how much information Verizon could share and with whom. Generally, the rules now state the phone company can only share your payment history with other telephone companies, such as in the case of moving to an area served by a different provider or if you choose to sign up with a competitor. Providers use this information to decide if they will require a deposit before connecting service.

Verizon claims the current rules do not go far enough to protect the company from deadbeats who bounce between unregulated telecom providers (wireless, Voice over IP, and cable telephone service) and Verizon. The company is asking the PSC to:

  • to report final unpaid undisputed accounts of its local exchange customers to credit reporting agencies,
  • to engage in full file reporting with the NCTUE, a special credit reporting service created by and for cable, telephone, and other utility companies to track customer payment histories (i.e., reporting monthly on all payment history for all customers), and
  • to engage in full file reporting with Equifax, Experian and TransUnion should Verizon choose to do so in the future.

experianLate phone company payments appearing on a consumer’s credit report can be devastating to a consumer’s general credit score, which can affect credit lending decisions, home purchases, apartment leases, insurance rates, and employment prospects. Disconnected, unpaid accounts turned over to an independent collection agency may already appear on credit reports, but Verizon late-payers who still have service with the company might be affected much sooner.

Verizon hopes the change will convince customers to pay Verizon first instead of last or not at all:

“Consumer reporting agencies serve an important function by enabling businesses to avoid bad-debt costs and by preventing consumers, in a competitive market, from hopping with impunity from one company to another, accumulating unpaid debts at each step of the way,” Verizon argues in its regulatory filing. “In that way, information obtained from consumer reporting agencies reduces bad-debt costs that would otherwise have to be passed on to consumers who do pay their bills. Further, consumers who know that their credit scores will be reported will be less likely to default on payments; conversely, consumers who feel secure that such data will not be reported will be more likely to believe that moving to another provider is an acceptable alternative to paying bills.”

Verizon Seeks New Fees, Rate Increases

Verizon customers in New York will soon see higher phone bills if Verizon’s appeal to raise certain rates and tack on a new monthly service fee is approved:

Municipal Construction Surcharge: To cope with a declining number of landline customers, Verizon is seeking the imposition of a new $0.99 surcharge on all residential and business customers (except Lifeline) to help recoup the costs of relocating Verizon lines in public rights-of-way to prevent interference with street maintenance, repairs, or public construction projects. Verizon is also mandated to remove lines or other equipment that present a potential danger to public safety or health. Because Verizon has lost half of their landline customers in New York since 2006, the costs incurred by Verizon per remaining customer have increased dramatically, Verizon argues. In 2006, the company claims the average cost for line relocation was $10.79 per customer. Today, the company says the cost has risen to $31.01 annually.

Verizon seemed unconcerned about the impact the new fee might have on customers who could use it as an excuse to abandon landline service.

“Verizon needs to recoup its losses where it can,” said Verizon’s general counsel Keefe B. Clemons. “Moreover, customers have competitive alternatives and can choose other providers if they are dissatisfied.”

nys pscOther Service Charges and Rate Hikes:

  • Verizon is seeking increases in the non-recurring Service Charge and the Central Office Line or Port Charge for business customers;
  • Verizon seeks a $3 rate increase for its legacy ISDN service, which still serves a declining number of business customers;
  • Verizon also seeks a 50 cent a month increase for maintaining a non-published number. The current rate ($2.50) has remained unchanged since 2005 and Verizon claims the increase is required to “keep up with inflation.” The company said its new rate would still be lower than AT&T in Connecticut ($4.99/month) or Time Warner Cable ($3.75/month);
  • Verizon is discontinuing its Busy Verification and Interruption Service, primarily because it does not work with most of its competitors.

Verizon says these rate changes are necessitated by a marked decrease in the number of customers keeping their Verizon landlines. Since New York still requires Verizon to serve every part of its designated service area, the current financial situation for the company’s landline service division is untenable. The company argues its investment in FiOS and other network upgrades more than outweigh the amount of revenue the company is earning from the declining number of landline customers. Verizon did not mention the far brighter financial performance of its wireless division Verizon Wireless, not subject to the PSC’s regulatory requirements.

AT&T Slaps Surprise $1.99 “Regulatory Inspection Fee” on Tenn. Landline Customers

tn feeAT&T continues its quest to make landline service a really bad deal with the introduction of a new bill-padding fee that wireless customers will not have to pay.

AT&T’s $1.99 “Tennessee Regulatory Inspection Fee” appeared on customer bills in March, much to the surprise of customers.

“My regular service is only 22 bucks,” Charles “Buck” Meyer told the Chattanooga Times Free Press. “If they add $2 to it, that’s almost a 10 percent increase. I’ve been on the fence about switching off my landline for some months, and this could be the thing that pushes me over the edge.”

AT&T says it is entitled to recoup the money it pays to the Tennessee Regulatory Authority. The $1.99 fee appearing on March bills is a “one-time” fee until AT&T figures out how much it plans to charge customers on an ongoing basis. Most companies subject to TRA fees build them into the monthly cost of the service. AT&T is the only phone company in the state to break the fee out on the bill and collect the money separately.

In 2009, when the company lobbied for widespread deregulation of phone bills in Tennessee, it claimed deregulation would not bring about increased rates.

att_logoMeyer does not see it that way. He considers AT&T’s new fee a stealth rate hike.

“Slip a little line item on there that’s just a couple bucks and is a one-time deal,” he told the newspaper. “Then pretty soon it’s on there every month.”

The new fee is permitted because of a 2009 change in Tennessee’s statutes that now allow companies to pass along regulatory fees on customer bills.

Companies like AT&T heavily lobbied for statewide deregulation of telephone bills that year, and spent $180,000 in campaign contributions to lawmakers, their political action committees or party organizations. AT&T hired at least 20 lobbyists to help push deregulation through the Tennessee legislature. Critics of the bill warned its passage would lead to rate increases, something AT&T denied at the time.

AT&T Tennessee president Geoff Morton told the Times Free Press back in 2009, “the company needs to compete with rivals and is not interested in raising rates.”

AT&T refused to say how much it will collect from the new fee, but Morton said the company is now lobbying for another law that would gut the fees AT&T pays to the TRA to oversee the quality of phone service in the state.

“In the previous administration, telecommunications inspection fees increased despite a dramatic decrease in telecommunications services regulated by the commission,” AT&T spokesman Bob Corney told the newspaper. “We are hopeful that legislation will pass this session to reduce the regulatory burden on landline telephone customers in Tennessee.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WMC Memphis ATT Mystery Fee 3-21-13.mp4[/flv]

WMC’s “Ask Andy” segment has some non-answers from AT&T about their new $1.99 “regulatory authority inspection fee.” When the Memphis consumer reporter called AT&T, the company said, “no comment.”(1 minute)

Verizon’s Long Term Plan to Abandon Wired Landlines/Broadband in Non-FiOS Areas Begins

Verizon CEO telegraphed his plans to dump rural landline service last summer.

Verizon CEO Lowell McAdam telegraphed his plans to dump rural landline service last summer.

You should believe Verizon Communications CEO Lowell McAdam when he says he intends to end wired telephone and broadband service for areas that are simply not economically feasible for fiber upgrades. McAdam’s grand plan is now coming true for customers in parts of Florida and on Fire Island, N.Y.

Last summer, Stop the Cap! covered McAdam’s comments to Wall Street investors (that are always the first to know) at the Guggenheim Securities Symposium:

“In […] areas that are more rural and more sparsely populated, we have got [a wireless 4G] LTE build that will handle all of those services and so we are going to cut the copper off there,” McAdam said. “We are going to do it over wireless. So I am going to be really shrinking the amount of copper we have out there and then I can focus the investment on that to improve the performance of it.”

The writing is already on the wall:

  1. Verizon has been penalized and criticized in several states by public utility commissions for the ongoing degradation of its copper network. Verizon sees further investment in copper technology as throwing good money after bad, but spending millions on additional fiber upgrades isn’t appealing either. The result is deteriorating service. From downtown Manhattan to New Jersey to Maryland, D.C. and Virginia, Verizon’s service failures have left customers frustrated and sometimes waiting weeks or months for repair crews to turn up to restore basic phone service. Even more dangerous, Verizon was to blame for significant 911 network failures near the nation’s capital. Post Sandy, there are still sections of lower Manhattan without phone service nearly five months after the storm struck. Five months.
  2. Verizon sold off telephone service in northern New England several years ago to FairPoint Communications, knowing full well Verizon never had an interest in upgrading any part of Vermont, New Hampshire or Maine to fiber service. In many smaller former GTE telephone areas too small to successfully argue a case for return on investment, Verizon decided selling those territories off was the best option. Hawaiian Telcom and Frontier Communications now own many of those former-Verizon territories.
  3. Verizon has decreased marketing its wired DSL service and stopped selling it altogether to customers who want broadband-only service. That seems counter-intuitive for a company that recognizes future revenue possibilities come primarily from broadband and data services.

Traditionally, customers reporting trouble on a phone line get a visit from Verizon technicians who track the problem down and repair it. But Verizon no longer wants to spend money fixing copper wire-related problems. Customers reporting chronic phone static or outages are now being asked to abandon their traditional landline service instead:

The end of an era.

The end of an era.

Customers who live in Florida currently have a choice. During the trial, they can switch to Voice Link or keep their current landline service. On Fire Island, just south of Long Island, customers will not have that choice. Verizon is testing the will of New York regulators asked to allow the company to gradually abandon landline and wired Internet facilities on the island. Customers previously knocked out by Hurricane Sandy have no alternative — switch to a wireless option like Voice Link or lose  telephone service. As the network degrades further on the island, it is a safe bet more Fire Island residents will find themselves confronted with a wireless future courtesy of Voice Link.

Verizon is careful to note its Voice Link service comes at no additional cost to customers — their phone bills will remain the same, at least for now. But the transition includes several important caveats:

  1. Voice Link is not subject to state or federal oversight or quality of service consumer protection laws that apply to traditional landline service;
  2. The customer is responsible for providing an indoor space to mount the equipment (hardly unobtrusive, the receiver is eight inches tall) and provide electric power and AA batteries for battery backup;
  3. Voice Link does not work with any data services including broadband or dial-up Internet, faxing, medical monitoring, alarm systems, etc. You will be pitched an expensive Verizon Wireless data plan if you want Internet access;
  4. During recent severe storms, copper landline networks often continued to work but cell phone service failed over wide areas because of call congestion and  long-term power outages. Similar failures will leave Voice Link non-operational;
  5. Voice Link customers lose DSL service and may have little chance of getting it back once they switch.

Verizon’s solution for Fire Island represents the long-term vision of McAdam coming to fruition. Complaining customers have not been able to persuade the company to abandon its plan, but New York State regulators might, if the issue gets enough attention.

In states with less aggressive regulators, Verizon could implement its Fire Island strategy nearly at-will, especially in rural service areas. Verizon’s plan differs little from that of AT&T, another major service provider seeking permission from regulators to abandon rural landline networks. AT&T is betting the Federal Communications Commission will approve AT&T’s “network transition plan” for all of its rural customers. Verizon is starting smaller, gradually implementing its transition under the radar of many state and federal officials.

AT&T wants to wind down its own rural landline network.

AT&T wants to wind down its own rural landline network.

So why adopt Voice Link — a wireless solution, when copper wire network repairs remain a viable option?

The reasons are simple:

  1. Voice Link is cheaper to run and maintain as a wireless service and uses existing Verizon Wireless cell towers;
  2. Verizon can further cut their unionized workforce that maintains the company’s landline network;
  3. Wireless products escape regulatory oversight;
  4. The company can push customers to wireless data products that cost far more than wired DSL broadband service;
  5. Verizon doesn’t have to upgrade the rest of their network to fiber.

Customers in Verizon service areas should appeal to regulators and their elected officials to stop the abandonment of wired infrastructure. Verizon argues maintaining its network doesn’t make sense when customers are fleeing their landlines. But rural customers are not disconnecting broadband service that travels across the same network. Even basic DSL is coveted in rural Verizon territories where Internet access remains unavailable. Just about everyone wants the option of FiOS fiber, perhaps the most coveted network upgrade around until Google announced its gigabit fiber project in Kansas City.

Nobody wants Verizon or AT&T to keep up its copper wire facilities indefinitely. But a better solution would be a regulatory mandate that requires Verizon and AT&T to gradually replace antiquated and failing copper infrastructure with fiber wherever possible. It is more than possible to do this on Fire Island. Verizon’s service area in Florida is hardly rural either. Verizon Florida (formerly GTE Telephone) serves Tampa-St. Petersburg east to Lake Wales, a major metropolitan region in central Florida.

What is best for shareholders should not be the final determining factor for an important utility service. If customers prefer the option of Voice Link for home phone service, there is nothing wrong with that. But wireless service as the only option customers have for broadband service? Not at Verizon Wireless’ prices.

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