NYC chastises Verizon over slow FiOS rollout
New York City wants its broadband and is taking on Verizon for failing to deliver.
City officials have told Verizon Communications that it considers the telecommunications provider in default of its agreement to provide broadband and pay-TV services throughout the city.
Verizon delivers pay-TV and high-speed broadband service over its fiberoptic FiOS network to more than 7 million subscribers, primarily in the Northeast U.S.
Verizon, which is headquartered in New York City, says its agreement with New York covers only cable TV and that the terms of the 12-year agreement, signed in 2008, are being met. "The City has now chosen not to work with us to resolve impractical processes for getting access to more buildings which seems at odds with bringing the benefits of competition to New Yorkers," Verizon spokesman Ray McConville said in an email statement to Paste BN.
This isn't the first time that New York City and Verizon have had conflicting views of their agreement. In June 2015, the city released an audit that found Verizon had failed in extending its FiOS network throughout the city by June 30, 2014. "Through a thorough and comprehensive audit, we have determined that Verizon substantially failed to meet its commitment to the people of New York City,” Mayor Bill de Blasio said at the time.
Since then, city officials charge that Verizon has made little progress in expanding service throughout the city. That has led to the city issuing a notice of default to Verizon, which has thirty days to respond.
“Verizon has failed to fulfill its contractual obligation to install a complete, citywide FiOS network available to all city residents and, most concerning, the company lacks a plan for how to complete it. That’s unacceptable,” said Counsel to the Mayor Brittny Saunders in an emailed statement.
The Wall Street Journal first reported on the city's action.
In its franchise agreement, the city can sue Verizon unless it can show it is taking steps to remedy the situation.
"The City’s position is overly aggressive and simply wrong," Verizon's McConville said. "It will only slow progress. If the City pursues counterproductive litigation, we will defend the good work done by our company.”
New York City officials had hoped that FiOS citywide coverage would provide competition, as most residents have only one choice of provider. Depending on what part of the city they live in, that's either Time Warner Cable, acquired by Charter Communications in a deal approved earlier this year, or Cablevision, acquired by French telecom giant Altice last year.
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