Verizon would end “century of regulation” by killing wireline phone

[humble3d]

Verizon would end “century of regulation” by killing

wireline phone, says NY AG

AG thinks Verizon should be fined $100,000 per day for

pushing wireless plans.

On 7/5/2013, 2:50 PM
Hurricane Sandy caused widespread damage in Fire

Island, New York.

New York Attorney General Eric Schneiderman this week

accused Verizon of trying to "depart from a century of

telephone service regulation" by ending wireline

telephone service in a part of Fire Island devastated

by Hurricane Sandy in October, 2012.

In addition, Schneiderman has accused Verizon of

violating a state order by telling customers outside

of Fire Island that they should accept wireless phone

service instead of repairs to their landline service.

He says Verizon should be fined $100,000 per customer,

per day.

Verizon says it has not violated the state order, and

that its offer of wireless service outside Fire Island

is strictly optional.

Verizon is, however, trying to gain state approval to

end wireline service entirely in western Fire Island.

Killing the public switched telephone network, one

step at a time

It's no secret that telcos want to abandon the

traditional public switched telephone network (PSTN)

and switch to all-IP networks.

AT&T has asked the Federal Communications Commission

to lead this transition and also get rid of the

"conventional public-utility style regulation"

associated with landline phone service.

Such a transition will take years on a national level,

but it's happening on a small scale in Fire Island,

where Verizon says the infrastructure costs of

repairing damaged phone lines are too great.

On May 3 of this year, Verizon asked the New York

Public Service Commission to allow the discontinuation

of wireline phone service in western Fire Island and

let Verizon replace it with a similarly priced

wireless phone service called Voice Link.

Verizon's proposal would also pave the way for all-

wireless deployments in other parts of New York.

Verizon proposes amending state regulations to allow

wireless-only service when facilities are destroyed or

when it is simply deemed reasonable because of

geographic location or availability of competing

services.

Before Hurricane Sandy, Verizon provided voice service

to about 1,100 customers on eastern Fire Island and to

2,700 customers on western Fire Island.

In the western part, Verizon says its copper

infrastructure suffered extensive damage, making

repair costly and difficult.

That's why Verizon would rather provide Voice Link,

which uses the same cellular technology as

conventional mobile phones and places a small

transmitter and receiver in customers' houses.

The unit's battery life has raised concerns that

residents would only have a few hours of voice time

during power outages.

"For the present, Verizon believes it can continue to

provide service in the eastern portion of Fire Island

through the use of existing land line facilities,"

Verizon said in its proposal.

"However, in the western portion of the Island, where

a large percentage of Verizon's copper facilities were

damaged beyond repair, Verizon is offering a wireless

service known as 'Verizon Voice Link' as its principal

service option.

Where existing copper pairs are still functional,

Verizon will continue to use them to provide service

to the extent possible.

However, Voice Link service will be provided where

outside plant facilities were destroyed by Hurricane

Sandy, and as surviving copper facilities go out of

service.

All orders for new service will be fulfilled using

Voice Link."

On May 16, the Public Service Commission permitted

Verizon to deploy Voice Link services "pending further

review," in the interest of getting phone service to

customers quickly.

But the commission did not authorize Verizon to exit

the wireline phone market in western Fire Island.

Verizon's "general market exit" proposal was suspended

"pending further review."

 

This decision, and all other filings, are available on

the New York Public Service Commission website.

Schneiderman wants the commission to require Verizon

to keep offering wireline phone service in all areas,

or force Verizon to exit the market entirely and be

replaced by another carrier.

On Tuesday, Schneiderman wrote:

    For over a century, the Commission has maintained

a consistent policy promoting universal access to

wireline telephone service.

Approving Verizon's Voice Link tariff proposal would

abandon this long-established commitment.

Replacing wireline networks with a wireless Voice Link

service would deprive customers of the ability to

continue using wireline-dependent services such as fax

machines, alarm systems, medical alert devices, and

Digital Subscriber Line Internet access that serve

essential security and commercial needs, as well as

enable participation in 21st century digital

communications on the Internet.

Unlike wireline service, which continues to function

even when customers lose electric power, Voice Link's

backup battery only allows a brief period of use

during blackouts, when customers' need to communicate

is often greatest.

    The Commission should not jettison wireline

service merely because Verizon business strategy

prefers a wireless business plan.

Many incumbent local exchange providers continue to

provide wireline telephone service to customers, both

in New York and across the nation.

The Commission should instead require that Verizon

divest those portions of its New York franchise where

it is no longer willing to continue providing wireline

service and replace Verizon with another carrier that

will provide wireline service.

Verizon disagrees, of course. In a statement sent to

Ars, Verizon said it "uses the best technologies to

meet our customers’ needs, and Voice Link is an

innovative use of a proven product that is already

delivering reliable voice service to satisfied

customers on Fire Island and in other areas.

It’s an excellent solution for customers with

lingering difficulties with their copper-based

telephone service, utilizing a resilient technology

that tens of millions of people use each day."

As for Schneiderman's claims regarding power outages,

Verizon said that "unfortunately, a falling tree or

branch does not discriminate and can just as easily

knock down a power line as it can a phone line."

Hundreds of Fire Island residents have written to the

commission, most opposing Verizon's plan to go all

wireless.

"The Voice Link system, which has only been up and

operational for less than a month, is a substandard

service to that which was available prior to the

storm," one resident wrote.

The issue will play out over several months. The

commission recently extended the deadline for comments

to September 13.

AG wants Verizon to pay $100,000 penalties

In addition to the question of whether Verizon should

be able to exit the wireline business in western Fire

Island, Schneiderman says Verizon should face multiple

$100,000 fines for allegedly violating the

commission's limited approval of Voice Link

deployments.

 

On June 26, Schneiderman filed an "emergency petition

… preventing Verizon from illegally installing Voice

Link service in violation of its tariff," saying that

Verizon violated the commission order by expanding

Voice Link service outside of western Fire Island, in

the Catskills village of Monticello.

The AG wrote:

    The Attorney General's Office has recently learned

that Verizon intends to require customers outside of

the Fire Island pilot area seeking to have their

wireline service installed accept instead wireless

Voice Link service, notwithstanding the Commission's

May 16 Order.

According to reports by representatives of the

Communications Workers of America, Verizon has

delivered a pallet load of Voice Link devices to its

Monticello Installation/Maintenance Center, and has

instructed its technicians in that region to provide

summer seasonal customers returning to Catskill

vacation homes, who have long received Verizon

wireline service, only Voice Link service.

The union's report is corroborated by two complaints

of Verizon seasonal customers who have been told Voice

Link will be installed instead of repairing their

wireline telephone service.

Only by firmly refusing Voice Link were both customers

able to keep their wireline service.

For this alleged violation, Schneiderman said Verizon

is "subject to a $100,000 civil penalty for each and

every offense," and that the Public Service Commission

should impose the $100,000 fine for each customer and

for each day of continuing violation.

Verizon disputed this accusation, saying the

Commission order doesn't prevent Verizon from offering

Voice Link as an optional service outside Fire Island.

Even the customers referred to in Schneiderman's

complaint were not denied wireline service, Verizon

noted.

Schneiderman repeated his allegations on Tuesday,

saying Verizon is repeatedly pressing customers to

accept Voice Link instead of a repair of their

wireline service.

"Even when a customer makes a choice not to accept

Voice Link, Verizon continues to press for the

substitution at every point of contact," Schneiderman

wrote.

"Verizon provides false information, such as asserting

that storm damage from Sandy rendered the land line

network in the Catskills beyond repair."

Verizon has not yet formally responded to this latest

allegation, but a Verizon spokesperson told Ars via

e-mail that "[a]ny claims of abandonment of service

are flat out wrong.

... Contrary to claims in a recent (July 2) petition

filed by the New York Attorney General’s Office with

the Public Service Commission, Verizon is abiding by a

PSC order regarding the company’s use of Voice Link.

Fire Island presents a unique situation because

Hurricane Sandy washed away our equipment on the

Western shore.

Outside of the areas impacted by Sandy, we are

offering our customers the option of the reliable

service that Voice Link offers.

But don’t take my word for it, look at the Attorney

General office’s original filing which cites an

example of a customer who decided to keep the copper

service and Verizon did exactly as the customer

requested. Again, this is in the AG office’s own

filing."

As for gaining permanent approval to deploy Voice Link

as the sole option in western Fire Island, Verizon

said "we will continue to provide [the commission]

with the information they need to judge the long-term

effectiveness of Voice Link."

 

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technology/2013/07/verizon-would-end-century-of-
regulation-by-killing-wireline-phone-says-ny-ag/