Buffalo’s communications labor unions are behind an organized effort to push Verizon Communications to expand its fiber-to-the-home service to the city of Buffalo, despite the fact the telecom company has a moratorium on service expansion beyond its existing commitments.

Buffalo AFL-CIO Central Labor Council President Michael Hoffert and CWA (Communications Workers of America) Local 1122 President James Wagner teamed up with the city’s elected officials and community advocates to pressure the phone company to expand service beyond several suburbs that currently get the service.

A professionally designed website, DontBypassBuffalo.com, is the home of the campaign, collecting signatures from interested residents and sharing late-breaking developments.

Verizon has a moratorium on further expansion of its fiber to the home service.

“Verizon’s FiOS service is a cutting-edge technology that brings ultra-fast internet and superior video programming over fiber optic cables that run directly into customers’ homes,” reads a statement from the coalition. “While Verizon is deploying FiOS throughout many of the suburbs of Buffalo, they are not building FiOS in the City of Buffalo.  The residents of Amherst, Tonawanda, Kenmore, Orchard Park, Hamburg, West Seneca and Lackawanna, where Verizon has built FiOS, are, taken as a whole, more affluent and less diverse than Buffalo residents.  The deployment of broadband technologies is a key to economic redevelopment in the City, especially since health care and higher education, both very dependent on cutting edge technologies, are leading employers in our area.  If Verizon continues to bypass Buffalo, residential consumers, children, and area businesses won’t be able to thrive in the 21st century economy.”

The union shares an interest in bringing the advanced service to more residents across Erie County as it collectively represents some of the Verizon employees who will service the fiber network.  Three western New York chapters of the CWA – Locals 1122, 1115 and 1177 – represent nearly 750 Verizon Workers across Erie, Genesee and Niagara counties, as well as across the Southern Tier, including field technicians, central office technicians and clerical staff.

Curry (WIVB-TV)

Verizon stalled new rollouts of its fiber optic network more than a year ago, and has consistently said it would only expand service in areas where it already has signed agreements with local communities.  In many regions, Verizon has completed agreements with towns and villages before reaching accommodations with larger urban areas.  Buffalo is not alone in protesting for improved broadband service.  Washington, D.C., Baltimore and Boston have also complained about being bypassed.

Last week, Coalition Director Janique Curry stepped up the pressure on the phone company at a press conference in front of Verizon’s Elmwood Avenue headquarters.

“Verizon’s lack of commitment to the minority population in the city of Buffalo is unacceptable,” Curry said.  “This community deserves an equal opportunity as our neighbors in the suburbs experience.”

Verizon’s FiOS network in New York State currently serves parts of metropolitan New York City and suburban areas around Albany, Syracuse, and Buffalo.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/DontBypassBuffalo Apr-May 2011.flv[/flv]

Here are three reports on the protests: WIVB-TV and WKBW-TV’s coverage of the protest in April, and WIVB’s most recent story covering last week’s return to Verizon headquarters to apply additional pressure on the company.  (3 minutes)

Bill Shock

Time Warner Cable’s fastest broadband speeds come to those willing to pay a stiff installation fee — $67.98, covering a required in-home installation.

Stop the Cap! readers have been sharing their experiences calling Time Warner to set up installation appointments for the DOCSIS 3 cable modem swap required to obtain the cable company’s top broadband speeds — 30/5 and 50/5Mbps.

Although one reader was quoted $29.99, the majority are sharing their surprise at a stiff $68 fee just to install the faster Internet experience they crave.

“I’d rather just swing by one of their stores and pick up the modem and install it myself,” writes Jon from Perinton, N.Y.  “All they are going to do is check the line — something they can do remotely — and hand me a new modem, and charge me half of my normal month’s bill for the effort.”

But it could be worse.  One downstate customer shared his experience with an even higher install fee when DOCSIS 3 was introduced in metropolitan New York: $40.95 for the truck trip and a $50.00 wireless activation fee (the new modem was part of a wireless router) – take it or leave it.

Stop the Cap! called Time Warner Cable this morning and learned there is a way to a lower price – be a new Time Warner Cable customer.  Those just signing up for cable, telephone, and DOCSIS 3 broadband service pay just $29.99 for installation of all three services, and we talked them down to $19.99 — the price charged to transfer a phone number to Time Warner’s “digital phone” service.

But they won’t budge on the $67 fee just to upgrade their existing Internet customers.

If you are still paying regular Time Warner prices, perhaps now is the time to cancel service and then return as a “new customer” under a price promotion, also scoring a dramatically lower installation fee in the process.

HissyFitWatch: When contract negotiations with the local cable company get a little too heated for comfort.

The city of Troy, N.Y. has lived with an expired franchise agreement with local cable company Time Warner Cable for more than a decade.  After a shouting match erupted between a city councilman and a city economic development coordinator over its renewal, now we know why.

City officials managed to complete a tentative renewal with the cable company back in March, subject to city council review.  The agreement comes even as Verizon’s FiOS fiber to the home network threatens to provide the cable company with some competition in the region.

As part of the renewal, Time Warner has agreed to provide $80,000 to fund a Digital Technology Lab at the Arts Center of the Capital Region. It will also front $70,000 to help construct a studio for a new government channel that will deliver coverage of city council meetings, which could draw some high ratings if tensions always run this high.

Troy also gets the right to collect the maximum franchise fee allowed by law and receives a $200,000 settlement to cover alleged franchise violations that occurred under the old agreement.

One of Time Warner Cable’s biggest skeptics on the city council is Councilman Bill Dunne, (D-District 4).  He’s heard complaints about Time Warner’s prices and service from his constituents for some time, and told The Record he is “cautiously optimistic” about the potential deal, but stressed it will not be approved by the council until it is thoroughly reviewed.

Dunne suspects the cable company has made a fortune off Troy residents for years, and he wants to closely examine how well the cable company has done in upstate New York before handing them a lengthy contract extension.

Troy, New York

“I would like to see an independent auditor open up the books on Time Warner Cable … to see exactly where the money is going and how much money is being made [from Troy cable subscribers],” he told the Troy newspaper.

Some residents suspect whatever Time Warner Cable “gives” the city as a result of contract negotiations will be quickly made back in future rate increases.

“These negotiations are a sham because Time Warner Cable is negotiating with our money,” Troy resident Bill Thompson tells Stop the Cap! “If they give the city $500,000, they’ll just raise our rates to get that money back.”

Thompson says he applauds Dunne’s skepticism, and believes bringing in competition from Verizon is the only way to keep prices in check.

Christopher, during happier times.

Dunne’s ongoing concerns about Time Warner caused a fracas during last Thursday’s city council meeting, when Dunne won approval to take the Time Warner Cable franchise renewal off the table.  In its place, Dunne’s new substitute resolution forming a working group to study the proposed franchise renewal and more importantly, perform an audit of Time Warner Cable and their supporting documents.

That decision infuriated Economic Development Coordinator Vic Christopher, who had been working with Time Warner Cable and the mayor’s office to push for a speedy approval of what he felt was a well-reviewed franchise renewal agreement. When Christopher objected to the study group, and delaying the agreement in general, Councilman Ken Zalewski (D-District 6) suggested he and the mayor’s office were representing the cable company more than city residents.

That did it.

As the meeting ended, a shouting match ensued between an offended Christopher, Zalewski, and Dunne. Christopher called the city council “obstructionists” and then followed up on his Twitter account accusing the council of talking everything to death. Dunne suggested Christopher should run for office if he didn’t like the way the council represented the interests of Troy residents.

“Christopher’s petulance was an amazing spectacle to watch, especially considering nobody was directly attacking him,” Thompson says.  “He took it as a personal attack and responded in kind, and it only reinforced the notion the mayor’s office was in a hurry to get this agreement signed.”

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/The Record Spat in Troy Over TWC 4-22-11.mp4[/flv]

The hissyfit over a Time Warner Cable franchise agreement extension was caught on a cell phone camera, and the resulting video was promptly published online by The Record, Troy’s local newspaper. (1 minute)

TWC Franchise Agmt

Time Warner Cable is blaming an increase in pole attachment fees in upstate New York for increasing the cost of doing business, despite the fact those increases will not apply to the cable company.

National Grid, which also does business as Niagara-Mohawk, is raising rates for third-party companies to attach new lines to the poles the electric utility owns.  The power company says it is the first rate increase since 2007, and covers the cost of engineering, safety reviews, and ongoing infrastructure costs.

The Albany Times-Union quotes Time Warner Cable spokeswoman Lara Pritchard’s reflexive complaints about the rate increases.

“Inevitably, any price increase to poles will impact our costs to bring service,” Time Warner spokesman Lara Pritchard said Monday. “At this time, we have no plans to adjust fees. We periodically assess all of our associated costs to do business, as any company would, and this would factor into that assessment.”

If so, it should be by a factor of zero because the pole attachment fee increases apply only to companies seeking to place new lines on utility poles, not those maintaining or replacing existing cables.

The New York Public Service Commission approved the utility’s request for a change in their “Make Ready” rates, which cover costs associated with new projects. Existing companies, including Time Warner Cable will continue to pay a locked-in rate of $11.13 per pole, which represents no change.

Verizon acknowledged as much, noting the company’s existing fiber and copper wire lines are exempt from the rate hike.

But not every company is being held harmless from the rate increases.

Major projects to extend fiber broadband service to rural Franklin and St. Lawrence counties in upstate New York could be at risk because Niagara Mohawk, the dominant power provider in the region, is raising the rates to place fiber on some 22,000 poles required for the network.

Slic Network Solutions, the Development Authority of the North Country and Ion HoldCo LLC are facing at least $3.5 million in higher pole attachment expenses the utility said nothing about when they reached an agreement with National Grid in December.

Taxpayer grant money is backing the projects, including Slic’s 136-mile network covering parts of Franklin County and another 660-mile project in St. Lawrence County.  Ion operates a fiber optic broadband backbone that extends throughout upstate New York.

Keith J. Roland, an attorney with the Herzog Law Firm representing the three companies, has filed a formal complaint with the N.Y. State Public Service Commission, calling the rate increase “unjust, unreasonable, excessive, and unlawful.”

Roland says the increased costs, which he calls “arbitrary,” could threaten the viability of the projects.

“Without access to those poles, SLIC, DANC and Ion and almost any other telecommunications, cable TV and Internet provider in rural area of Niagara Mohawk’s territory would be driven out of business or effectively be precluded from doing business,” the complaint states.

In an upstate New York match-up, the Rochester/Finger Lakes region scored dead last in broadband speed and value, according to data from Broadband.com.

Why are broadband speeds so much lower in the Flower City?  Blame Frontier Communications, which continues to pitch its decade-old DSL product, delivering an average speed of 4.45Mbps, while other upstate cities enjoy access and competition from Verizon’s fiber to the home network FiOS.  Frontier DSL actually often costs more, after taxes and fees, than Time Warner Cable’s much-faster cable broadband product, Road Runner, which rates an average download speed of 12.77Mbps in Rochester.  Frontier does manage to pull one win — higher upload speed DSL providers can often achieve in cities where cable operators keep upstream speeds as low as possible.

Time Warner Cable has dragged its feet upgrading broadband service in the area to its DOCSIS 3 platform other upstate cities have had since last year.  DOCSIS 3 should arrive within the next 4-8 weeks, which should boost broadband speeds, but may not deliver lower broadband prices because of Frontier’s uncompetitiveness in the area.

(Source: Broadband.com)

The top city in upstate New York for download speed is the state capital, Albany.  But Buffalo wins the contest for upload speed thanks to aggressive competition for Time Warner from Verizon in the Queen City.  Buffalo also pays the least for service — nearly $5 less per month than residents in Rochester pay on average.  Syracuse scores in the middle — but closer in terms of speed and value to other Verizon-served cities.

Slow and expensive broadband service can hamper economic development and costs consumers more.  Unfortunately, there are no signs Frontier Communications has plans to do anything differently in its largest service area — a classic driver of the accelerating number of customers calling to pull the plug on their landline service.

Time Warner Cable's Road Runner vs. Frontier Communications' DSL (Speeds are downstream/upstream; Source: Broadband.com)