Verizon Voice Link

The New York State Public Service Commission has announced it will hold public hearings in Ocean Beach in Suffolk County, N.Y. to hear from angry Fire Island residents and others about their evaluation of Verizon’s controversial wireless landline replacement Voice Link, which Verizon hopes to eventually install in rural areas across its operating territories.

“Verizon needs to stop lying,” said Fire Island resident Debi May who lost phone service last fall after Hurricane Sandy damaged the local network. “Don’t tell me you can’t fix my landline service. Tell me you won’t.”

She is one of hundreds of Fire Island residents spending the summer without landline service, relying on spotty cellular service, or using Verizon’s wireless landline alternative Voice Link, which many say simply does not work as advertised. In July, the CWA asserted Verizon is trying to introduce Voice Link in upstate New York, including in the Catskills and in and around Watertown and Buffalo.

“I’ve been on the phone with Verizon all day,” Jason Little, owner of the popular Fire Island haunt Bocce Beach tells The Village Voice. The restaurant’s phone line and DSL service is down again. Just like last week. And three weeks before that. Like always, Verizon’s customer service representatives engage in the futility of scheduling a service call that will never actually happen. Verizon doesn’t bother to show up in this section of Fire Island anymore, reports Little.

“They never come,” he says. So he sits and waits for the service to work its way back on its own — the result of damaged infrastructure Verizon refuses to repair any longer. Until it does, accepting credit cards is a big problem for Little.

It’s the same story down the street at the beachwear boutique A Summer Place. Instead of showing customers the latest summer fashions, owner Roberta Smith struggles her away around Verizon’s abandonment of landline service. She even purchased the recommended wireless credit card machine to process transactions, but that only works as well as Verizon Wireless’ service on the island, which can vary depending on location and traffic demands.

Smith tells the newspaper at least half the time, Verizon’s wireless network is so slow the machine stops working. If she can’t reach the credit card authorization center over a crackly, zero bar Verizon Wireless cell phone, the customer might walk, abandoning the sale.

National Public Radio reports Verizon’s efforts to abandon landline service on Fire Island and in certain New Jersey communities is just the first step towards retiring rural landline service in high cost areas. But does Verizon Voice Link actually work? Local residents say it doesn’t work well enough. NPR allows listeners to hear the sound quality of Voice Link for themselves. (5 minutes)
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Verizon’s decision is making life hard for Fire Island’s small businesses.

The Village Voice notes Verizon CEO Lowell McAdam didn’t make the decision to scrap rural copper wire landline service to improve things for customers. He did it for the company.

“The decision wasn’t motivated by customer demand so much as McAdam’s interest in increasing Verizon’s profit margins,” the Voice writes.

Tom Maguire, Verizon’s point man for Voice Link, has not endeared himself with local residents by suggesting Fire Island shoppers should get around the credit card problem by bringing cash.

“Remember what happened to Marie Antoinette when she said ‘let them eat cake’,” suggested one.

For some customers who appreciate the phone company’s cost arguments, Verizon’s wireless alternative wouldn’t be so bad if it didn’t work so bad.

“It has all the problems of a cellphone system, but none of the advantages,” Pat Briody, a homeowner on Fire Island for 40 years told NPR News.

“I don’t think there’s anyone who will tell you Voice Link is better than the copper wire,” says Steve Kunreuther, treasurer of the Saltaire Yacht Club.

Jean Ufer says her husbands’ pacemaker depends on landline service to report in on his medical condition.

“Voice Link doesn’t work here,” reports resident Jean Ufer, whose husband depends on a pacemaker that must “check in” with medical staff over a landline the Ufer family no longer has. “It constantly breaks down. Everybody who has it hates it. You can’t do faxes. You can’t do the medical stuff you need. We need what we had back.”

Residents who depended on unlimited broadband access from Verizon’s DSL service are being bill-shocked by Verizon’s only broadband replacement option – expensive 4G wireless hotspot service from Verizon Wireless.

Small business owner Alessandro Anderes-Bologna used to have DSL service from Verizon until Hurricane Sandy obliterated Verizon’s infrastructure across parts of the western half of Fire Island. Today he relies on what he calls poor service from Verizon Wireless’ 4G LTE network, which he claims is hopelessly overloaded because of tourist traffic and insufficient capacity. But more impressive are Anderes-Bologna’s estimates of what Verizon Wireless wants to charge him for substandard wireless broadband.

“My bill with Verizon Wireless would probably be in the range of $700-800 a month,” Anderes-Bologna said. That is considerably higher than the $29.99 a month Verizon typically charges for its fastest unlimited DSL option on Fire Island.

Despite the enormous difference in price, Verizon’s Maguire has no problems with Verizon Wireless’ prices for its virtual broadband monopoly on the landline-less sections of the island.

“It’s a closed community,” he says. “It’s the quintessential marketplace where you get to charge what the market will bear, so all the shops get to charge whatever they want.” And that’s exactly what Verizon is doing.

WCBS Radio reports Verizon is introducing Voice Link in certain barrier island communities in New Jersey. But the service lacks important features landline users have been long accustomed to having. (1 minute)
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In nearby New Jersey, Verizon’s efforts to introduce Voice Link has met with resistance from consumer groups, the state’s utility regulator, and the Rate Counsel. Over 1,400 customers on barrier island communities like Bay Head, Brick, and Mantoloking cannot get Verizon DSL or landline service any longer because Verizon refuses to repair damaged landlines.

Tom Maguire

“The New Jersey coast has been battered enough,” said Douglas Johnston, AARP New Jersey’s manager of advocacy. “The last thing we need is second-class phone service at the Shore. We are concerned that approval of Verizon’s plans could further the gap between the telecommunications ‘haves’ and ‘have-nots’ and could create an incentive for Verizon to neglect the maintenance and repair of its landline phone network in New Jersey.”

In some cases, Verizon has told customers they can get landline phone service from Comcast, a competitor, instead.

State consumer advocates note that other utilities including cable operators have undertaken repair, replacement, and restoration of facilities in both New York and New Jersey without the challenges Verizon claims it has.

“Only Verizon, without evidentiary support, is seeking to jettison its obligations to provide safe, proper and adequate service to the public,” wrote the New Jersey Rate Counsel in a filing with the Federal Communications Commission.

New York Senator Phil Boyle, who represents Fire Island residents, is hosting a town hall meeting tonight to discuss the move by Verizon to replace copper-wire phone lines on Fire Island with Voice Link. The meeting will be held at the Ocean Beach Community House in Ocean Beach from 5-7pm.

The New York State Public Service Commission will be at the same location Saturday, Aug. 24 starting at noon for a public statement hearing to hear from customers about how Verizon Voice Link is working for them.

It is not necessary to make an appointment in advance or to present written material to speak at the public statement hearing. Anyone with a view about Voice Link, whether they live on the island or not are welcome to attend. Speakers will be called after completing a card requesting time to speak. Disabled persons requiring special accommodations may place a collect call to the Department of Public Service’s Human Resources Management Office at (518) 474-2520 as soon as possible. TDD users may request a sign language interpreter by placing a call through the New York Relay Service at 711 to reach the Department of Public Service’s Human Resource Office at the previously mentioned number.

Fire Island

Those who cannot attend in person at the Community House, 157-164 Bay Walk, Ocean Beach can send comments about Voice Link to the PSC online, by phone, or through the mail.

• E:Mail: [email protected]
• U.S. Mail: Secretary, Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350
• 24 Hour Toll-Free Opinion Line (N.Y. residents only): 1-800-335-2120

Your comments should refer to “Case 13-C-0197 – Voice Link on Fire Island.” All comments are requested by Sept. 13, 2013. Comments will become part of the record considered by the Commission and will be published online and accessible by clicking on the “Public Comments” tab.

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Al Jazeera reports Fire Island residents are fighting to keep their landlines, especially after having bad experiences with Verizon Voice Link. (3 minutes)

Phillip “What’s $520 a month between friends” Dampier

The average Ohio household consumes 52 gigabytes of data per month — the equivalent of more than five million emails or surfing the Internet for about 100 hours monthly — up from 28GB in 2012.

Demand for broadband and mobile communications continues to skyrocket as consumers in urban Ohio dump traditional landline phone service at an accelerating rate.

Since 2000, the industry group Ohio Telecom Association reports 64 percent of landlines have disappeared in the state since peaking in 2000. An additional 6-10 percent continue to cut the cord every year, either when elderly customers pass away or when consumers decide to switch to a wireless, cable telephone, or a broadband Voice over IP alternative like Vonage.

Some telephone companies, particularly AT&T and Verizon, argue the ongoing loss of landlines means the service is becoming technically obsolete — a justification to drop old copper phone networks in rural areas in favor of wireless and switching to fiber-fed IP networks like U-verse in urban and suburban areas. But copper landlines do more than just connect telephone calls.

Broadband usage statistics suggest rural customers in Ohio could find their Internet bills exploding if AT&T succeeds in forcing those customers, least likely to face competition from cable providers, to the company’s highly profitable wireless network.

AT&T currently sells rural landline customers DSL service starting at $14.95 a month. A usage cap of 150GB per month technically applies, but remains unenforced.

Customers switched to AT&T wireless service will pay much more for much less.

AT&T’s DataConnect plan, suitable for fixed wireless home use, starts at $50 a month and includes a usage allowance of 5GB per month. With the average Ohio resident now consuming 52GB a month, switching to wireless broadband is a real budget-buster. AT&T’s overlimit fee is $10/GB, so the average resident would face a monthly Internet bill of $520 a month this year. Assuming usage growth continues at the same pace, in 2014, AT&T customers will need to write a check for around $780 a month.

Ohio’s broadband and wireless usage statistics are familiar because they echo the rest of the country. According to Connect Ohio, wireless-only residents are 81 percent urban or suburban, where cell networks provide the best reception; 84 percent are under age 44; 58 percent have a college education; and 63 percent earn more than $25,000 annually.

Those affected by a forced transition to a wireless-only solution are least financially equipped to handle it.

“The least likely to convert to a wireless-only solution would be an older, rural, less educated, lower-income individual,” said Stu Johnson, executive director of Connect Ohio. “Those are probably also the most expensive copper customers.”

Despite warnings from public safety officials the wireless landline alternative proposed by Verizon is unreliable and potentially a threat to the safety and well-being of customers, Verizon is moving full speed ahead to deploy Voice Link service in New York and New Jersey communities where existing Verizon landlines have deteriorated and FiOS fiber optics is a distant dream.

On July 12, the Communications Workers of America reported that Verizon’s repair call centers in New York City are now assigning employees to Voice Link-related jobs.

“In addition, CWA members report that technicians are receiving specialized Voice Link installation training and are being assigned to carry out installations in the Buffalo and Watertown areas,” said Chris Shelton, vice president of CWA District 1.

The union also confirmed no further expansion work was being done on Verizon’s FiOS fiber network outside of the areas already committed by the company. Verizon FiOS is only available in a few Buffalo suburbs and not available in Watertown at all.

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CWA District 1 vice president Chris Shelton summed up Verizon’s aggressive deployment of Voice Link: “We can’t allow these dirty bastards to do this to their own customers, who they don’t give a s**t about….” (Warning: Strong Language) (3 minutes)

Sullivan County

More than 130 county executives, legislators, mayors, town supervisors, and councilors representing 68 New York State communities including Albany, Syracuse, Rochester, Binghamton, Plattsburgh, Ithaca, Jamestown, Poughkeepsie, Rome, and Elmira called on the PSC to declare Voice Link an experimental service and not allow it to serve as the sole service offering on Fire Island or anywhere else:

The Commission stated that “[it] has been the Commission’s policy that utilities determine how to provision service via any combination of facilities – wires, fiber optics, electronics – so long as the tariffed service meets the Commission’s prescribed rules and customer expectations.”

Voice Link, as currently offered, does not meet Municipalities’ expectations. Instead, Voice Link would jeopardize municipalities’ ability to fulfill their responsibility to protect the safety of the citizens who reside and work in their communities. The broad and significant implications of Verizon’s proposed tariff warrant a full investigation. New technology should be deployed after solutions are found, not before.

Municipalities urge the Commission to develop a full factual record and to offer interested stakeholders the opportunity to participate fully in this important proceeding. Municipalities rely on the Commission to guide the evolution of the state’s telecommunications infrastructure in a manner that protects citizens’ safety and promotes economic development.

The legislators called Voice Link a threat to public safety and its installation hampered communities from protecting local residents.

In Sullivan County, where Verizon is attempting to introduce Voice Link as an option for seasonal residents, Undersheriff Eric Chaboty said using wireless service carries risks in an emergency.

Chaboty

At a press conference covered by the Mid-Hudson News Service, Chaboty made it clear homeowners should not feel pressured to sign up for Voice Link. Chaboty recounted a story of his neighbor’s house catching fire and the owner called 911 from a cell phone using the same wireless network Voice Link would use. The call was mistakenly routed to another county instead of Sullivan County 911, and by the time the call reached the correct emergency responders, the family’s home burned to the ground.

Stories like that may explain why Verizon has taken great pains to disclaim responsibility for a customer’s inability to reach 911 or be connected to the correct public safety operator.

Assemblywoman Aileen Gunther (D-Forestburgh) was incredulous Verizon would even attempt to introduce Voice Link in the rural Catskill Mountains, which is notorious for lousy cell reception.

“Too much of this county has no service at all and no hope on the horizon,” she told the audience. “Until the time comes when companies like Verizon are willing to make the investment to ensure reliable and thorough coverage, products like Voice Link are an insult and a danger to our community.”

Legislators across the state also suspect Voice Link will create an incentive for Verizon to neglect its already-deteriorating copper wire network, accelerating the need to deploy its preferred wireless solution. But the thought of achieving business priorities at the possible cost of public safety bothered the 134 legislators who signed a petition sent to the PSC.

“When outside plant is inadequately maintained, consumers’ safety is jeopardized because their dial tones may not function when they need to reach emergency services,” the petition explained.

Brookhaven town supervisor Edward P. Romaine held his own news conference at the Davis Park Ferry Terminal in Patchogue last week. He worried that Verizon was attempting to get its foot in the door with Voice Link, and will use any approval to quickly expand it as a “sole service option” elsewhere.

“Our concern isn’t only for Fire Island,” Romaine said. “Our concern is while they’re impacting a few communities in Fire Island, this . . . will spread to all of Fire Island and possibly to the main island.”

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/CBS This Morning No more landlines Verizon wont fix storm damaged wires 7-19-13.flv[/flv]

CBS’ This Morning covered Verizon’s plans to drop landline service in Mantoloking, N.J., on an off shore barrier island. Residents really don’t want Voice Link as the replacement, but at least they have an alternative. Unlike on Fire Island, Mantoloking is served by a cable company – Comcast. (3 minutes)

Verizon Communications is cutting investment in its landline and fiber optic networks, spending the money on improving the company’s more profitable wireless business, which now accounts for 67 percent of Verizon’s total revenue.

Verizon reported second-quarter results this morning, meeting most Wall Street analysts’ expectations. The company reported a minor increase in capital spending to bolster its wireless LTE 4G network which is seeing strong growth in data traffic.

Verizon Wireless added one million new wireless customers in the last quarter, many transferring from Sprint’s now-discontinued Nextel network shut down last month. Among the new customer additions, 941,000 signed two-year postpaid contracts.

A growing number of Verizon Wireless customers are also migrating to the company’s Share Everything plan. At least 36 percent of Verizon’s wireless customers are now on shared, usage-limited data plans. Verizon expects more customers to switch, especially when legacy plan customers discover they will not receive a subsidized phone upgrade unless they abandon the grandfathered, all-you-can-eat data plan. Verizon believes the Share Everything plan will keep the company in a strong place to accelerate earnings as customers find they must regularly upgrade to higher capacity data allowances to handle increasing data usage.

Verizon’s wired success story

The growing adoption of more expensive data plans means higher bills for Verizon Wireless’ 35 million contract customers. The average Verizon Wireless customer now pays $152.50 per month, an increase of 6.4 percent. In total, over 100 million Americans now use Verizon’s prepaid and postpaid wireless services.

In June, Verizon Wireless reported its nationwide upgrade to LTE 4G service was now essentially complete, with 99 percent of 3G service areas also covered by 4G. Verizon reports 59% of its total data traffic is carried on the 4G LTE network, which is five times more efficient than the 3G network.

Wireline: Success When Verizon Invests in Upgrades, Ongoing Customer Defections Where Verizon’s Copper Network Continues to Deteriorate

Verizon’s success story in wireless is not repeated on its wireline network. Verizon lost another 5.2 percent of its residential copper landline customers during the quarter, down from 6.6 percent at the same time last year. In contrast, where Verizon’s fiber optic network FiOS is in place, customer numbers are growing along with revenue.

In fact, 71 percent of the revenue Verizon now earns from its wired residential network now comes from FiOS. The fiber network helped Verizon boost revenues by another 4.7 percent in the second quarter. With an average Verizon FiOS bill now at over $150 a month, the company saw a 9.4 percent increase in the average revenue per wireline customer over last year.

Verizon added 161,000 new FiOS Internet customers and another 140,000 new video customers in the second quarter. FiOS Quantum, which offers a broadband speed upgrade to 50/25Mbps for $10 more a month, has continued to be a hit with customers. More than one-third of all FiOS Internet customers have upgraded to faster Quantum speeds.

Shammo

With continued growth possible in the wired network business, Verizon could increase investment in expanding FiOS fiber into more markets, but instead the company continues to divert its attention and money to Verizon Wireless.

Verizon’s legacy copper wire phone and FiOS businesses saw a further reduction of 5.9 percent in capital expenditures in the second quarter — just $1.5 billion spent in the quarter and $2.9 billion year to date. Verizon’s full-year capital spending outlook which includes wireless, in contrast, is on track to spend between $16.4-16.6 billion this year. The majority of Verizon’s capital investments are aimed at improving its wireless network. Verizon’s aging copper wire network will continue to see a declining percentage of investment, and the company continues to leave FiOS fiber expansion on hold.

Fran Shammo, Verizon’s chief financial officer, this morning told investors they should expect to see a continued decline in spending on Verizon’s wired networks and more cost savings wrung out from Verizon’s declining unionized workforce, which has been asked to make concessions in labor contracts and increase work rule flexibility.

Other highlights:

• 51 percent of new phone activations were Apple iPhones during the second quarter;
• Over 64 percent of all activated phones on Verizon Wireless’ network are now smartphones;
• Verizon’s 3G network will increasingly be used by prepaid and reseller (MVNO) customers not allowed on Verizon’s LTE network;
• Verizon’s proposed entry into the Canadian wireless market is primarily focused on serving southeastern Canada from roughly Montreal to Toronto;
• 60 percent of Verizon’s revenue declines in its enterprise division were due to the federal government’s sequestration — automatic spending cuts, and declining spending by state and local governments;
• Verizon has no interest in competing with AT&T to acquire Leap Wireless (Cricket);
• The impact of Verizon’s agreement with cable operators to sell each other’s products has underwhelmed, at least so far;
• Voice Over LTE service, which will dramatically improve sound quality on voice calls, will arrive in Verizon handsets later this year with an aim to introduce the service sometime in 2014. But Verizon Wireless wants to be certain 4G LTE coverage is robust, because if reception deteriorates, VoLTE calls are not backwards-compatible with its current CDMA network and the call will get dropped. Getting it right is more important for Verizon than getting the service out quickly.

The general counsel of the Federal Communications Commission predicts your landline will stop working within the next ten years, abandoned by companies like AT&T and Verizon in favor of wireless service in rural America or fiber (if you are lucky) in the cities.

Phillip “Did you know your landline will be dead within ten years?” Dampier

Sean Lev, the FCC’s general counsel, said in a blog post that “we should do everything we can to speed the way while protecting consumers, competition, and public safety.”

But the FCC seems to be abdicating its responsibility to do exactly that by singing the same song some of America’s largest phone companies have hummed since they decided to get out of the copper landline business for fun and profit.

Traditional boring telephone service is regulated as a utility — a guaranteed-to-be-available service for any American who wants it. Hundreds of millions of Americans do, especially in rural areas where America’s cell phone love affair is tempered by dreadful reception, especially in mountainous areas. Oh, and the nearest cable company is ten miles away.

AT&T and Verizon — two of America’s direct descendants of the Bell System, just don’t want to pay to keep up a network most of urban America doesn’t seem to want or need anymore. In addition to a dwindling customer base, providing a regulated legacy service means having to answer to unions and government-types who make sure employees are fairly compensated and customers are given reasonable service at a fair price. The alternatives on offer from AT&T and Verizon carry no such regulatory (or union) baggage. Prices can change at will and customers have no guarantee they will receive service or have someone to complain to if that service is sub-standard.

While in the past regulators have taken the lead to make sure telephone companies meet their obligations, the new FCC seems to spend most of its time observing the business agendas of the companies themselves.

Lev implied to the Associated Press the FCC is not exactly leading the parade on the future of landlines. He seems more comfortable trying to analyze the intentions of AT&T and Verizon’s executives:

Most phone companies aren’t set to retire their landline equipment immediately. The equipment has been bought and paid for, and there’s no real incentive to shut down a working network. He thinks phone companies will continue to use landlines for five to 10 years, suggesting that regulators have some time to figure out how to tackle the issue.

Lev

AT&T is more direct: It wants to switch off all of its landline service, everywhere, by 2020. Customers will be given a choice of wireless or U-verse in urban areas and only wireless in rural ones. Where U-verse doesn’t serve, AT&T DSL customers will be in the same boat as Verizon customers on Fire Island: pick an expensive wireless data plan, satellite fraudband, or go without.

Verizon prefers a “gradual phase-out” according to Tom Maguire, Verizon’s senior vice president of operations support.

Verizon claims it has no plans to shut down working service for customers, but it does not want to spend millions to continue to support infrastructure fewer customers actually use. That means watching the gradual deterioration of Verizon’s copper-based facilities, kept in service until they inevitably fail, at which point Verizon will offer to “restore service” with its Voice Link wireless product instead.

For voice calls, that may suffice for some, especially those comfortable relying on cell technology already. But at a time when the United States is already struggling with a rural broadband problem, abandoning millions of rural DSL customers only makes rural broadband an even bigger challenge. The wireless alternative is too variable in reception quality, too expensive, and too usage capped.