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story category Another Look At Verizon's NYC Deal
Wimpy deployment failure penalties and degraded consumer protections
11:28AM Friday May 30 2008 by Karl Bode
tags: Fiber · coverage · business · Verizon FIOS · RoadRunner Cable · Cablevision
The Gotham Gazette has the best writeup I've seen of what Verizon's new FiOS agreement with the NYC does, and doesn't do. Hashed out in secret meetings between Mayor Bloomberg's office and Verizon over a period of eighteen months, the agreement is 59 pages long with 74 appendices and multiple additional borough agreements. To suggest the NYC public understands what they're getting into is a joke. Most are just excited to get fiber, but for those interested in the plan's finer points, the writeup is worth a read. Their bottom line:
Overall, the deal is very favorable to Verizon, which, pending Public Service Commission approval, now has access to the largest cable market in the country. It permits the company to build to areas of the city in the order it wants and allows for delays if its services do not attract enough subscribers early on. There are no repercussions for further delays or for poor customer service.
Other than two brief meetings, consumers have been allowed no substantive input on the deal. NYC hasn't even posted the deal to their website. Media coverage hasn't helped consumers either, most writers just jabbering on alongside politicians, blinded by Verizon's promises of lower TV prices that, I'm sorry to say, aren't coming. Still, those of you in neighborhoods Verizon deems worthy finally get FTTH, so that's something, right?

Related:
  1. Michael Bay 'Awesomely' Blows Stuff Up For Verizon
  2. Verizon Advertising: Do As We Say, Not As We Do
  3. Verizon Promises 100% NYC FiOS Coverage By 2014
  4. A Closer Look At FiOS Installs In NYC
  5. Verizon May Expand FiOS Deployment Targets
  6. Verizon: We've Neglected DSL
  7. Why Deploy Fiber To The Home When You Can Pretend You Do?
  8. Why Run FTTH When You Can Pretend You Do?
Forums » Another Look At Verizon's NYC Deal
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bugabuga

join:2004-06-10
Austin, TX

Better than nothing at all

I'm a bit surprised at how much people don't want any competition at all. Yes, it'd be great if all new deals were perfect. It'd be even better if stupid franchise laws did not limit people to one or two local providers, hand picked for agreeing to carry local public channel or promising a build-out "everywhere".
I think if people are unhappy with current options, give a competition a chance as soon as possible, then think about extra rules upon renewal, as carrier would be more willing to cooperate with having some profitable customers they could potentially loose.
--
Странные новости почти каждый день
deadzoned
Premium
join:2005-04-13
Baton Rouge, LA
·Cox HSI

Re: Better than nothing at all

Looking at the terms of the agreement, it looks both good and bad. I suppose it is a major plus to even have Verizon laying fiber in New York but at what cost?

A duopoly is not that much better than a monopoly. Cable rates still rise and typically Verizon follows suit - because they can due to the fact that it's just 2 players. They don't necessarily collude together and specifically meet to work together to raise prices but it does happen anyway. When you have only 2 games in town for service that's what happens.

There appears to be several commitments that Verizon can and will wiggle out of. In the future, I don't see Verizon meeting many of the guidelines it's agreed to. After all, Verizon does have a long history of not following through all the way on commitments unless it sees them as profitable. I guess we shall see.

wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..

said by bugabuga See Profile :

I'm a bit surprised at how much people don't want any competition at all. Yes, it'd be great if all new deals were perfect. It'd be even better if stupid franchise laws did not limit people to one or two local providers, hand picked for agreeing to carry local public channel or promising a build-out "everywhere".
I think if people are unhappy with current options, give a competition a chance as soon as possible, then think about extra rules upon renewal, as carrier would be more willing to cooperate with having some profitable customers they could potentially loose.
I tend to agree with that. I find it amazing that people today can be of the "if I cant get it, then nobody else can either" mindset. Sure, in a perfect world (for consumers at least) everyone would have access to 20 different providers. In reality however (and in business), if some people have choices thats better than no people having them. I dont know if people are being selfish or if they are just socialism fanboys, but the insanity needs to stop. Having FIOS available to more areas is a good thing, no matter how you look at it. I just wish this website didnt always put such a negative spin on what really is a win for consumers.
--
Have YOU thanked a soldier today? If not, think about doing it as you speak ENGLISH this memorial day. God Bless America, and God Bless our troops.
MrSpock29

join:2008-02-09
Hammonton, NJ


edit:
May 30th, @02:07PM

Re: Better than nothing at all

said by wifi4milez See Profile :

said by bugabuga See Profile :

I'm a bit surprised at how much people don't want any competition at all. Yes, it'd be great if all new deals were perfect. It'd be even better if stupid franchise laws did not limit people to one or two local providers, hand picked for agreeing to carry local public channel or promising a build-out "everywhere".
I think if people are unhappy with current options, give a competition a chance as soon as possible, then think about extra rules upon renewal, as carrier would be more willing to cooperate with having some profitable customers they could potentially loose.
I tend to agree with that. I find it amazing that people today can be of the "if I cant get it, then nobody else can either" mindset. Sure, in a perfect world (for consumers at least) everyone would have access to 20 different providers. In reality however (and in business), if some people have choices thats better than no people having them. I dont know if people are being selfish or if they are just socialism fanboys, but the insanity needs to stop. Having FIOS available to more areas is a good thing, no matter how you look at it. I just wish this website didnt always put such a negative spin on what really is a win for consumers.
well said.

If one company is going to face penalties for how business gets done in an area, then why not do it to all? But that would be ridiculous wouldn't it?
The city would face much less crowding over time, for sure.

It is unfortunate that some aren't even giving Verizon the CHANCE to fail. If they succeeded, and met those goals, I am sure something else would be found to complain about.
If Verizon misses a milestone by one house, I am sure there will be a party by some.

Maybe it just strikes me odd that some want to see companies severely punished for doing business, to hurt them and others in the process. Karl Marx would be proud.

wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..

Re: Better than nothing at all

said by MrSpock29 See Profile :

Karl Marx would be proud.

Yes, and he would have quite the captive audience here at this website!
--
Have YOU thanked a soldier today? If not, think about doing it as you speak ENGLISH this memorial day. God Bless America, and God Bless our troops.

n2jtx

join:2001-01-13
Glen Head, NY
·Optimum Online

said by bugabuga See Profile :

I'm a bit surprised at how much people don't want any competition at all.
Unfortunately, while the original promise was good, the net reality is that those areas that have FiOS now have a duopoly instead of a monopoly. The cable and phone companies seem perfectly happy not to compete too hard against each other. My area is just now getting FiOS installed and should be ready by the end of the summer. I do not expect there to be any cost or choice difference between Verizon or Cablevision.
jester121

join:2003-08-09
Lake Zurich, IL

Huh?

Most of the NYC public is excited to be getting fiber? Somehow I doubt that the vast majority of them even know what fiber is or what it can do for them.
macaholic
Premium
join:2003-08-31
Jackson Heights, NY

Re: Huh?

fiber keeps me regular....
EPS

join:2008-02-13
Hingham, MA

said by jester121 See Profile :

Most of the NYC public is excited to be getting fiber? Somehow I doubt that the vast majority of them even know what fiber is or what it can do for them.
That's what marketing is for
myokitis

join:2004-06-19
Alexandria, VA

I Don't Get It, What's the Hubbub?

It permits the company to build to areas of the city in the order it wants and allows for delays if its services do not attract enough subscribers early on. There are no repercussions for further delays or for poor customer service.

So . . . Verizon should be forced to buildout areas in a city in an order that doesn't make sense for them, and they should be fined for delays due to low customer take rates? Why in this world should these terms be part of any rational agreement?

Gts
Hi

join:2000-10-27
Astoria, NY
·RoadRunner Cable
·AT&T CallVantage

I'll take

4 TV sets with 4 premiums - with a 15/5 or 20/5 internet connection - anyday of the week, including holidays! My good friend has fios out in long island, and i'm jealous.

As for price - i'm with timewarner cable, they've been raising my rates for shotty service for many, many years. I'll be happy to pay a increase if the service meets the price hike.

ddg4005
Premium
join:2001-08-22
Bronx, NY
·Verizon Online DSL

Verizon's NYC Fios deal

It looks like Verizon is "prioritizing" deployments in Manhattan over the other boroughs. I won't call it cherry-picking since it'll be a helluva job but it wouldn't surprise me if the rest of the boroughs, except for Staten Island, didn't see large-scale deployments for a few years.

My DSL service was recently upgraded to 7.1 down so I'm good for now but that doesn't mean I won't consider Cablevision's triple-play deal if things get too expensive.
--
A man must have a code -Bunk

CarlosNYC

@rr.com

Service cost

Competition is good my sister in NJ pays 4.95 for the whole HBO package , while I pay 15 dollars for it living in Manhattan. There is not way that is what the main HBO office charge for that package.
Forums » Another Look At Verizon's NYC Deal


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