Verizon is annoyed at the FCC. Recently, the FCC was asked to look into rules that would force incumbent providers, like Verizon, to continue maintaining their copper networks.
Some parties are asking the FCC to consider rules that, rather than encouraging the move to fiber, would divert investment dollars into the very legacy copper networks that they have already acknowledged cannot provide real competition for cable at the higher speeds. Make no mistake, rules that force companies to invest in copper networks, even where they are already deploying new fiber networks, would significantly delay the fiber future. – Verizon Public Policy Blog
There are so many things wrong with this statement.
First, the reason that some are asking the FCC to step in is due to companies such as Verizon and AT&T completely ignoring current copper networks. In fact, Verizon stopped selling standalone DSL years ago because they wanted customers to pay for bloated bundles that cost significant more per month. Verizon was pushing as many customers as possible off copper networks and onto their more expensive wireless plans that include high overages and low data caps. Wireless plans are cheaper to deploy and easier to upgrade.
Verizon admits this….it isn’t speculation.
“Every place we have FiOS, we are going to kill the copper,” Verizon CEO Lowell McAdam recently told attendees of an investor conference. “We are going to just take it out of service. 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.” – DSLReports
Next, can someone at Verizon please explain to me why they continue acting as if someone is stopping them from expanding their FiOS service? It has been frozen for years now and cities are BEGGING THEM to come. Verizon tried claiming this exact same thing a year ago. People pointed out then as they do now why a company making billions per quarter is acting like anyone else is stopping their FiOS expansion.
Verizon Regulatory Affairs VP David Young has posted a rather odd blog response, taking the opportunity to pretend that people are somehow stopping the company from deploying more FiOS (even though they’ve put the brakes on deployment themselves) – DSLReports
Also, why do wireless carriers simply ignore the billions they have been given to maintain these copper lines? Verizon got billions in tax breaks to wire the entire state of Pennsylvania and New Jersey along with all of New York City. Verizon never came close to actually wiring anywhere near the entire part of any of those states/city. In some cases, Verizon hasn’t even hit 50% of the promised area….and have no plans on expanding.
- Pennsylvania gave Verizon $2.1 billion in tax breaks to wire their state with fiber. It never happened. Can they get their money back?
- In New York, Verizon was given billions in tax breaks to wire “100%” of the city. It never happened….not even close. Can they get their money back?
- In New Jersey, Verizon was given $15 billion in tax breaks to wire the entire state, it never happened. Can they get their money back?
In fact, after Hurricane Sandy, Verizon tried to simply not fix many areas with broken copper lines. It took the New York Public Service Commission publicly calling out Verizon in order to get these lines fixed. When people began asking more questions about Verizon’s refusal to fix the lines, Verizon tried hiding the information before it even became public.
Then there is the fact that wireless companies like Verizon and AT&T pay absolutely no taxes and take the tax breaks and do little with them other than pocket the additional income.