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Blog wrap up for the week of 7/16/2012
News on the Verizon cable deal: A new report from CWA shows that the deal could kill up to 72,000 jobs. Thirty-two members of Congress cautioned the FCC and DOJ over the deal. The Consumer Federation of American joined opponents of the deal. And a news report says Justice Department regulators are considering the anti-competitive nature of the deal. Meanwhile, the Boston Globe touted Verizon’s high-speed FiOS, oblivious to the fact that many Bostonians can’t get FiOS at any price. And, the FCC’s Connect American Fund will provide a $72 million subsidy to Frontier Communications to expand broadband, primarily in rural American. Read it all here.
CWA report: Verizon deal a jobs killer
A new report from CWA shows that Verizon's FiOS build-out would add some 72,000 jobs, but that the cable deal promises to kill those jobs. Read the Whole Story
Congressional letter cautions FCC, DOJ on Verizon-cable deal
32 Congressmen urged the FCC and the Justice Department of widespread concern over the anti-competitive Verizon/cable deal. Read the Whole Story
Consumer Federation denounces Verizon-cable merger
The huge Consumer Federation of America joins the growing ranks opposed to the Verizon/cable deal. Read the Whole Story
Some regulators still wary of Verizon/cable deal
The FCC may be favoring the Verizon/cable deal, but a report says the Justice Department is still suspicious that the deal locks out competition. Read the Whole Story
Boston Globe lauds new high-speed FiOS that residents can’t get
The Boston Globe recently touted the new super-fast FiOS, but it forgot to mention that many Bostonians can't get FiOS of any kind. Read the Whole Story
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Super high-priced FiOS for some, no FiOs for many
06.19.12
Posted By: Alec Dubro, Speed Matters Policy Analyst
Fearing further cable inroads, Verizon has begun to offer faster download speeds to FiOS customers – provided, of course, you live where FiOs is accessible. This news means that subscribers in the more prosperous suburbs and sections of cities can now get – for an exorbitant price – speeds of up to 300 megabits per second. If you live in a low-income part of a city or in a rural area, you probably can’t get even basic-grade FiOs – even if Verizon is your carrier.
But you’ll pay plenty for the new high-speed service. Although the basic 15 megabit triple-play service – phone, Internet and TV – costs an advertised $99 a month, the new 300 megabit service will cost more than double that – $204.99 a month with a two- year contract. There are intermediate 35 and 50 megabit plans, as well.
But, according to one analyst, you have to be enamored of high numbers to want the 300 megabit service in the first place. Jonathan Atkin of RBC Capital Markets told Bloomberg, “Once you get beyond 25 to 50 megabits, it’s all marketing.”
Not surprisingly, Verizon disagrees. Arturo Picicci, FiOS director of product management said “Getting over 50 megabits is important for families who have a lot of devices. It’s all about options and having choices.”
But too many people have no choices at all because Verizon has often failed to build out FiOS. In its definitive publication, “Verizon/cable deal: slamming the door on our high speed-future,” CWA said of those promised areas: A demographic analysis …demonstrates that people of color and lower- income households are disproportionately impacted by a decreased incentive to invest in FiOS.”
In other words, many cities with large minority populations – Baltimore, Buffalo, Boston – won’t be getting the high-speed upgrades. So for many it’s neither high-speed nor higher-speed, but rather it’s no-speed. Bad move, Verizon.
Links:
Verizon Raises Prices On Faster FiOs Quantum Web Service (Bloomberg news, Jun. 18, 2012)
Verizon/cable deal: slamming the door on our high speed-future (CWA, 2012)
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