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from: Boston.com

Verizon is pressured on network

By Carolyn Y. Johnson, Globe Staff | April 21, 2007

Senator John F. Kerry and Representative Edward J. Markey yesterday said they would send a letter to Verizon Communications Inc. demanding that it finish building a fiber-optic network to deliver TV, phone, and Internet service throughout Massachusetts.

"These cities and towns are eager to work with Verizon to grant franchises so that their citizens can receive new cable competition," Markey said .

The reaction from Kerry and Markey came after the Globe reported this week that Verizon had suspended applications for new cable licenses.

The company, now lobbying aggressively for legislation that would allow the state, instead of local governments, to grant cable licenses -- while also opposing Governor Deval L. Patrick's proposal to impose new telecommunications taxes -- emphasized that it is continuing to invest in its fiber-optic service, or FiOS, network and hopes to win franchises in 22 communities where it is negotiating for them.

Verizon will begin to apply for new cable licenses only after it has finished those projects, spokesman Phil Santoro said.

It is unclear how long that suspension will last. Verizon has said it takes an average of 15 months to get approval from a community, so at that pace, it could be 2008 before Verizon applies for any new cable franchises. But some community officials say the process is much faster, which would mean the suspension wouldn't last as long.

"To be clear, Verizon has not announced that it has stopped building our fiber network in the state, nor have we stopped pursuing FiOS TV franchises," the company said in a statement. "In fact, we are installing fiber in our network every day, and our goal is to secure 22 more TV franchises in Massachusetts by year-end, adding to the 45 franchises we already hold."

The company builds its fiber-optic network and offers high-speed FiOS Internet without approval from individual communities, but it must seek TV franchises from towns and cities to offer video, a crucial part of its business model. Last year, the company received approval for 38 franchises, and so far this year it has won approval for 7.

"I seriously hope that this is not part of some cynical bargaining effort by Verizon ," Kerry said .

Advocates for cities and towns yesterday applauded legislators' efforts to pressure Verizon to offer service across the state.

"This is exactly what we need to determine: Whether they fully intend to go ahead and build out the rest of the state," said Chuck Sherwood , a telecommunications consultant .

The company said it is committed to the future of the state: "We hope to bring our revolutionary all-fiber network to more Bay State residents and businesses in the future."

Carolyn Y. Johnson can be reached at cjohnson@globe.com.