(Cont'd from Pt. 1)

Franchise Agreements

Whenever a new TV service provider wishes to enter a given market, it must first negotiate an agreement with that market's governing body -- usually local municipalities, townships or boroughs. And there are thousands of them in Verizon's potential service area, each with its own, individually negotiated contract.

These franchising laws, which were written when cable company monopolies were the norm, were designed largely to protect consumers from the potential pitfalls of a competition-free market. Most local franchise agreements dealt with issues such as standards for customer service, public safety requirements and management of utility rights-of-way.

Ironically, though, these same laws created to buffer the effects of monopolies often end up acting as speed bumps on the path to true customer choice, by delaying or blocking new competitors. Sometimes local politicians also want new service providers to fund public works projects, part of the deal of earning the privilege to serve that market, which can add greatly to negotiating time. But even a fairly simple, straightforward franchise agreement can take quite some time to work out (there are lawyers involved, after all), which adds up to even more time that your incumbent cable company gets to hold onto its monopoly and deprive you of choice.

Don't think that cable companies aren't secretly (or not-so-secretly) thrilled about putting off competition, either. In communities in Texas, Florida and Virginia where Verizon FiOS has been allowed to compete, cable companies’ prices have dropped 28 to 42 percent. Why do you think you see door hangers from your cable company, trying to get you to lock into a long-term contract, right after you hear that FiOS is coming?

Some states have recognized the link between competitive broadband access and economic growth, and our need to catch up to Japan, Korea and Western Europe in bandwidth potential, and have greatly expedited the franchising process by allowing state-wide agreements, rather than requiring dozens or hundreds of local ones.

As of June, 2007, 15 states had enacted legislation to streamline video franchising: Ohio, Nevada, Iowa, Missouri, Florida, Georgia, California, Indiana, Kansas, Michigan, Virginia, North Carolina, South Carolina, Texas and New Jersey. If you live in a Verizon service area in one of these states, consider yourself lucky, as you might be getting FiOS sooner than folks in other states. If not, well, you just might have to wait a bit longer, as negotiating a franchise agreement can often take 18 to 22 months.

What can you do about it? Make your voice heard -- stay abreast of your city council, or whichever governing board regulates video franchising in your area, and let them know that you support the market competition, fair pricing and unparalleled speed and service that FiOS will bring to your community.

Fiber: Everybody Wants Some

Perhaps it's been weeks since you've seen those trucks with the enormous fiber-cable spools on your street. And as far as you know, your local council members were thrilled to welcome FiOS to the block party. So why is your installation appointment still two weeks away?

Probably because lots of your neighbors have been clamoring for the FiOS greenlight, too. In addition to the lengthy process of passing all the houses in a given area with fiber, each individual home's FiOS installation can be time-consuming as well -- often four hours or more, depending on the layout of the house, condition of its wiring, etc.

If FiOS has been deployed to your area, but the Verizon customer service rep is saying it's still not available to you, there could be a number of different variables and reasons why it's not. If you live in a townhouse or apartment, Verizon needs to obtain an access agreement with the property owner before they can make the building FiOS-ready. And multiple-unit dwellings like these also are more difficult and time-consuming to outfit than a single-family house.

If your development is on private property, it could be that Verizon has been unable to obtain a right-of-way to lay the fiber (again, let your governing body or home owners’ association know how you feel!) It's also possible that your home could be just outside the boundary, serviced by a different Verizon wire center that is not yet equipped for FiOS. This can be especially frustrating, having nearby neighbors blazing away on FiOS while you're still stuck with cable. But maybe if you act extra neighborly (i.e. show up with nachos and wings) they'll invite you in for the big game in high definition.

Above all, though, don't be discouraged. Just because FiOS isn't in your neighborhood yet doesn't mean it's not coming in the future. So, if you're not one to take comfort in sayings like, "Patience is a virtue," or "Good things come to those who wait," then just relax and think of all the nachos and wings people will be bringing to your place once you get FiOS connection. It'll be worth the wait.

Posted by Jim 2.0 | tagged: fiber, bandwidth, upgrade, compare, rollout, install, FiOS, network