Slashdot Mirror


How Verizon Is Hindering NYC's Internet Service

Cuillere writes: Verizon promised to make FiOS available to all New York City residents. The deadline passed a year ago, and many residents still don't have FiOS as an option, but Verizon claims to have done its part. "The agreement required Verizon to 'pass' homes with fiber (not actually connect them), but no one wrote down in the agreement what they thought 'pass' meant. (Verizon’s interpretation, predictably, is that it doesn’t have to get very close.)" The situation is a mess, and the city isn't having much luck fighting it in the courts. Susan Crawford offers a solution: set up wholesale fiber access for third party ISPs and absolve Verizon of customer service responsibility.

31 of 123 comments (clear)

  1. Hmm that sounds familiar by Shadow+of+Eternity · · Score: 3, Insightful

    It's almost like treating the lines in the ground as a public resource that ISPs can compete to offer service on...

    --
    A bullet may have your name on it but splash damage is addressed "To whom it may concern."
    1. Re:Hmm that sounds familiar by Solandri · · Score: 4, Insightful

      In the early stages when there's uncertainty about what the best solution is, you want competition. People weren't sure whether AC or DC was the best way to transmit electricity over long distances. So Edison and Westinghouse were both allowed to build their power grids and let economic reality decide which was the more effective solution. Same with the cable companies - what's the best way to wire up, subdivide, and subnet a bunch of residential customers? Nobody really knew, so you want lots of different companies trying lots of different solutions. The ones with bad solutions slowly go insolvent and get bought out by those with good solutions. The government should only provide access to easements so the process doesn't get bogged down negotiating access rights with every customer.

      All that changes once you're certain you've arrived at an optimal solution. Westinghouse's AC power transmission lines turned out to be best. And now electrical distribution is operated as a public utility Arguably, cable Internet has reached the same stage. Pretty much all the cable companies have standardized on the same tech (DOCSIS modems), indicating it's an optimal or near-optimal solution. And the apparent end-game is fiber to the home. So it probably is time to start treating cable/fiber Internet as a public utility. Give one company a contract to lay down and maintain the lines, but prohibit it from providing service over those lines. Any company is allowed to offer service over those lines, and the maintenance company has to offer all of them access at the same price per GB/mo of bandwidth.

    2. Re:Hmm that sounds familiar by virtual_mps · · Score: 4, Insightful

      No, the optimal solution is to treat the wires as a public utility and permit competition in providing the data. Let the consumers pick between NAT'd filtered consumer internet for one price or raw IP for another price or caps or 80% bandwidth pricing, good peering or cheap peering, etc. In no case should there be regulated pricing per GB, because that eliminates a lot of other pricing models and options that the customer should be able to pick based on requirements.

    3. Re:Hmm that sounds familiar by virtual_mps · · Score: 2

      I suggest looking into lambda circuits/lambda switching. The path between the customer and the provider is not shared, and can be reconfigured to switch providers. What is shared between customers are the links from the provider's point of presence to the provider's backbone to the internet, and the quality of those links is one of the things that providers can use to differentiate their service. The scarce resource is space at the handover point between the utility and the provider, and that's something that would have to be regulated. But it's a fixed cost based on physical space, not on per-byte counts or somesuch.

  2. Not with Verizon! by zenyu · · Score: 3, Insightful

    For this model to work you need a benevolent entity running the fiber network. Verizon runs a highly profitable wireless internet network which in many cases competes against high speed fixed internet. It is in their interest to kill fiber to the curb not keep it going. This might work if you spun off the fiber business or handed it over to a traditional utility like ConEd or National Grid. But then those electric utilities would probably end up using internet service to subsidize keeping the old electric grid going as that business enters its death spiral.

  3. What the fuck? by Psychotria · · Score: 4, Insightful

    Absolve Verizon of customer service responsibility? How about just telling them that they failed and allow other ISPs compete -- perhaps with subsidies? Why absolve Verizon of anything at all? I don't understand that in the slightest. It's like rewarding them for failure.

    1. Re:What the fuck? by Psychotria · · Score: 2

      Oh, by the way, I did read the article. The author is obviously as stupid as a brick. Well, maybe the brick has more of a clue but it cannot communicate.

    2. Re:What the fuck? by Anonymous Coward · · Score: 2, Insightful

      medium.com
      That says it all really.

  4. Re:So, what was the nature of this agreement? by NoNonAlphaCharsHere · · Score: 2, Informative

    In 2008 Verizon promised to make FiOS available to everyone in the city by June 30, 2014, and signed an agreement to that effect.

    As it's the second sentence in TFA, I can see how you missed it.

  5. Non-technical people making technical decisions. by Anon-Admin · · Score: 5, Insightful

    Looks like it boils down to Non-technical people making technical decisions.

    This is more directed to managers, VP's, and C-Levels. Before you agree to a contract for technical services, you really should have a skilled technical person read it and tell you where you are about to get screwed.

    I have seen contracts to outsource L1 and L2 where it stated "Any ticket that can not be handled by L1 or L2 support personal will be forwarded L3 personal provided by XXXXXXXXX." Where XXXXX was the name of the company that was outsourcing the jobs to India. Sounds good tell you find out that the Indian company hired 1 guy to do both L1 and L2. He had no computer knowledge and simple passed all tickets to L3 with the comment "Do the needful" The Indian company always met their SLA's because it was a ticket that could not be handled by the guy they hired. (Note: That one was for 1500 servers)

    Another contract I was shown listed a guaranteed uptime of 96%. When I questioned it, my VP replied "There management did not understand anything technical. 4% down time was sold to them as reasonable. So don't worry about it, we will always make our SLA's" (Note to managers: 99.99% uptime is reasonable, 99.999% uptime is what you want!)

    My favorite was one that stated that the customer was responsible for all documentation and procedures on servers, access, and support. That one was a huge pile of steaming fecal mater which suddenly leapt into the air oscillating device when they were SOX audited. The company they were outsourced to met the SLA's and could not be held liable because it was in the contract that the customer was responsible for the documentation.

    So, take it from someone with over 20 years in IT. When you outsource technical functions you need to have your technical people vet the contract and you need to keep them to monitor and make sure that the company, you are outsourcing to, does their job.

  6. Fraud by msobkow · · Score: 3, Funny

    Verizon committing fraud. I'm shocked, I tell you, absolutely shocked.

    --
    I do not fail; I succeed at finding out what does not work.
  7. What about the density??? by IsThisNickTaken · · Score: 3, Insightful

    This is the wide open United States, not some densely packed EU country. How can you expect a provider to provide fiber to all those people over all that distance and still have enough money for bribes^H^H^H^H^H^H lobbying? Wait, this was for New York City? Well then, uh, hmmm, what, nevermind....

  8. Undefined or ambiguous language by Overzeetop · · Score: 3, Interesting

    IIRC, ambiguous language in a contract, or that which is not defined or poorly defined, should generally be found to be in favor of the person receiving the contract. In other words, if Verizon wrote the contract and implied that "pass" meant to bring fiber to all residents, or the city believed in good faith that "pass" meant to provide a fiber outlet / headend / demarc readily accessible to every resident, then the courts should find in the favor of the city. The reverse is also true, though. If the city wrote the contract and didn't specify what they meant by pass, then Verizon gets to define what they meant (within reason, of course).

    --
    Is it just my observation, or are there way too many stupid people in the world?
    1. Re:Undefined or ambiguous language by jratcliffe · · Score: 2

      It's not, and there's a lot of debate between the city and Verizon about how much of the homes that don't have FiOS service available are because of buildings not letting Verizon in vs. Verizon not doing the work.

      It's not easy to install FTTH in a high-rise building, particularly an pre-war building, which probably has riser space designed for enough wiring for a couple hundred watts of lightbulbs and a fridge, along with a single phone line, in a two bedroom apartment.

      In my building, which is post-war, the crews had to drill two 4" wide holes in each floor by the laundry area on each floor to run the conduit to get the fiber up to the apartments. Took better part of six months from starting the process to bringing up service.

  9. Shocking... by Karmashock · · Score: 2, Insightful

    The ISP monopolies behave like monopolies.

    I know... lets hire another monopoly. Or the people that think they're really being crafty will say "lets have the government do it"... because that isn't a monopoly... right guys? Right?

    This isn't going to stop until you open up the right of way to run cable to everyone.

    In new york there is PLENTY of room in the conduits to run as much cable as people could possibly want to run.

    An individual building for example could run the cable for itself. The cost is trivial if we don't charge the licensing fees which tend to be extortion in the first place. Sort of like the cab medallions. The company pays more and gets a monopoly.

    Charge less and open it up to more people to run cable.

    The cost of running fiber from a building to the trunk is at most a couple thousand dollars in equipment. And we have so much dark fiber because it was determined that fiber is so cheap that it actually makes sense to over build your needs because the labor to install exceeds the cost of the equipment. Thus if the equipment cost is a couple grand... lets say the labor is another couple grand... compare that to how long the cable will last and how many tenants you have.

    The whole last mile ISP concept is stupid. The only real ISPs are the people the ISPs BUY bandwidth from in the first place. Qwest communications, L3... sure, ATT and Verizon own some trunk line but the majority of it is specialized players in that market.

    THOSE are the real ISPs. Cut the last mile monopolies OUT of the market by letting more people run cable. You want to have some more control over it? Not just have it be literally any asshole doing it? Fine. FINE. But if you restrict who gets to lay cable to ONE organization be that public or private you're going to get fucked... there will be no lube... and while its happening the bastards will expect you to be a good girl and thank them for caring enough to give it to you. Don't even dare argue the point. They've fucked over pretty much every market they've been given dominion over and then they walk around expecting everyone to tell them what wonderful people they are for the privilege.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    1. Re:Shocking... by Jon_S · · Score: 4, Insightful

      No, don't have a monopoly run it. But also don't require every ISP to lay their own fiber. Do what they do in Sweden. And no, it is not some communist/socialist monopoly. They have a single entity lay the fiber, but then let many, commercial, ISPs compete to provide the service over the fibers. It works great and is less expensive than what we have here. And Sweden is not that densely populated.

      Yes, I am worried about the entity (whether it is gov't or a regulated commercial entity) that lays the fibers getting out of hand with their tariffs, but overall, it would seem to provide the best opportunity to get the US out of third world status when it comes to internet access.

    2. Re:Shocking... by jratcliffe · · Score: 2

      In new york there is PLENTY of room in the conduits to run as much cable as people could possibly want to run.

      Really? How interesting. You really need to call up Verizon, AT&T, Level 3, Cogent, etc. etc. etc. and let them know about these hugely extensive empty conduits under NYC, since they'd love to make use of them.

      The reality is that the conduits are often totally fully, requiring extensive reroutes (many date from the late 1890s). There's also a lot of dead cable in there (providers who went belly up, or old copper phone lines), but getting to the conduits to clear that out usually requires ripping up the streets. In addition, there's a natural reluctance to rip out cables unless they're known to be dead, as nobody likes getting their phone service cut off.

    3. Re:Shocking... by jratcliffe · · Score: 2

      "I'm so tired of your snarky half wise/idiot dipshits that enter every discussion, make some stupid comment that you think is clever, and then when challenged you run away thinking you accomplished something."

      You clearly spend a lot of time looking in a mirror. Look, if you want to believe that there's a huge amount of empty space running under Manhattan streets, just waiting to be wired with fiber, be my guest. You're also welcome to believe that the main problem is dealing with the CHUDs down there. Both beliefs are equally true.

      If you want to think that the primary cost of network deployment is the license, not the fiber (which is cheap) or the labor (which is NOT), let me pose one question to you then: Google has deployed minimal amounts of fiber, in markets where construction and deployment is much cheaper than in NYC, and where they have all the licenses. Are they just idiots, who don't have your understanding of network and construction economics?

      Finally, one more question for you: do you understand the difference between the license needed to run fiber and the franchise agreement needed to offer TV service on the fiber you've run? Because it doesn't sound like you understand that there's a difference, with one being much more complicated to get than the other.

    4. Re:Shocking... by Karmashock · · Score: 2

      Wow... so much ignorance... I'll just skip to the bit I didn't already address.

      Google's deployments are actually based on the licenses. They have a non-negotiable policy to do a roll out. They're going to do it the way they want to do it and not the way the city wants it done.

      They tell you how they'll do it... and the city can either agree to it or not.

      If they don't then Google doesn't show up.

      NYC will probably NEVER sign that contract. Look at the cities that have. Notice how they're all over the place. They're not going for regional concentration. What is going on is that it is very rare for a city to be willing to sign a contract like that. And so you're just going to get these scattered eclectic cities/towns spread all over.

      Do you really need me to get quotes from google and other stake holders where this shit is spelled out for you? Or do you realize that you stepped in dog shit and then put your foot directly into your mouth?

      As to the license and the franchise, I'm conflating the two because they're not going to give you the franchise if they're not willing to give you the licenses.

      Frankly, the franchise agreements should be retired as a concept and they should just have the conduit/pole licenses that should mostly be a matter of making sure the installation and maintenance is orderly and fees are collected sufficient to maintain and upgrade conduits as needed.

      Again, its like the fucking taxi medallions. Its a racket.

      --
      I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    5. Re:Shocking... by dave420 · · Score: 2

      The results from other parts of the world seem to show you have no idea what you're talking about. Quelle surprise.

    6. Re:Shocking... by Karmashock · · Score: 2

      Except for Verizon technically isn't violating the contract. The contract as written basically f'cks NYC in the ass. All NYC can do is bite down on a wooden spoon and hope its over quickly.

      Which is why you don't deal with fucking monopolists in the first place because this is what they do to everyone.

      You sit down and sign these contracts with these people and you're going to get fucked. The negotiator for Verizon might as well have been Ron Jeromy. All sweaty and greasy and ready to go.

      By all means if that is what you want to happen... sign that contract. Ron will take real good care of you.

      --
      I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
  10. Start a community broadband service by Rigel47 · · Score: 4, Interesting

    Want Verizon to sit up straight and come around? NYC is the *perfect* place for community access broadband. Enormous population density with probably high 90% subscribership. Even if it's not possible to use Verizon's fiber I wonder if the conduit is fair game by FCC rules.

    Heck, I'm willing to bet a good technical plan and an indieGoGo campaign could get things going.

  11. Re:It's business by JackieBrown · · Score: 2, Insightful

    Verizon is in the business to make money - Providing access to Internet is just one of the by-products of Verizon's quest in making money .....
    On the other hand, places such as the Bronx, where the only real way to make money is to sell drugs, where is the impetus for Verizon to provide FIOS there?

    Nice claims but I honestly doubt that verizon (or anyone else) cares if they are paid with drug money, employeement money, wall street money, etc.

    When Verizon promised to provide FIOS to NYC it hinged on one thing - profits

    I don't work to break even on my monthly bills. I work to make as much money as I can - even if it's more than I "need." I do not understand why people think that buisness should be started and ran with a different principle.

  12. Re:So, what was the nature of this agreement? by njnnja · · Score: 2

    I have been following a bunch of the links but can't actually find what consideration Verizon got in the contract. But I did see that the contract is called a "franchise agreement" so I'm assuming that the city offered to use its power to prevent anyone else from competing with Verizon in exchange for Verizon agreeing to, among other things, provide service to the entire city. And now the city is shocked, shocked that a company that is too lazy to want to compete is also too lazy to actually provide the service. Frog, meet scorpion...

    Maybe next time the city will not offer any franchises and instead point out to Google what a great place NYC is to lay fiber. If Verizon still doesn't do a good job then they won't get the customers, Google will.

  13. Re:It's business by sjames · · Score: 3, Interesting

    So what? Do you advocate lying, cheating, and stealing to make that money? I ask because Verizon signed an agreement to make FIOS available to everyone in the city and they are now trying to weasel out of it.

    How do you suppose you'll do if you sign an employment agreement towards the goal of making more than you *need* and then only bother showing up for work once a week?

    Why should that strategy pay better for Verizon?

  14. Re:It's business by bradrum · · Score: 5, Insightful

    Verizon is in the business to make money - Providing access to Internet is just one of the by-products of Verizon's quest in making money

    When Verizon promised to provide FIOS to NYC it hinged on one thing - profits

    Verizon will do whatever it can to provide the best kind of net access to places where it knows it can get plenty of ROI - such as Wall Street

    On the other hand, places such as the Bronx, where the only real way to make money is to sell drugs, where is the impetus for Verizon to provide FIOS there?

    You don't know anything about the Bronx outside of the movies. There are tons of middle-class & working-class neighborhoods where there are absolutely no crack or drug problems. Verizon could make a ton of money in the Bronx as well as plenty of neighborhoods outside of FiDi (Wall Street).

    This is an infrastructure issue with tons of politics, corrupt city officials, fucked up Verizon execs, greedy landlords, and tenants stuck in the middle of a giant clusterfuck. For instance I know for a fact that Verizon FIOS is available to my building but my landlord is not required by the city to provide us with ISP options. So we just get fucking one and, surprise, surprise, it costs out the ass. There is nothing free market about it, we are held hostage to our landlord's ISP choices (and god knows if he gets kick backs from the ISP). My landlord is content to suck on the cities tit for all of the infrastructure it provides him (mostly at our cost as tax payers) and charge seriously fucking high rent. But when it comes to moving a hand to provide us with a choice of ISP, he won't move an inch.

    Why don't you stick (and whoever the fuck up-voted your post) to not commenting about cities you don't know anything about outside of blatant stereotypes.

  15. Re:So, what was the nature of this agreement? by budgenator · · Score: 2

    I read an blog article written by Bob Metcalfe a few years ago where he mentioned that every building in Manhattan is within 150 feet of a fiber optic cable, and only a hardware install from being an OC768, if your curious that would be a monthly inernet bill of between $1.5 - 2.5M and carry 975 times the bandwidth of Verizon's FiOS. The one of biggest expense in putting in a fiber network is actually laying the fiber and laying 1 cable isn't significantly less expensive than laying 50, which is why most of the fiber is dark, it's cheaper to put it in now before labor costs go up.

    --
    Apocalypse Cancelled, Sorry, No Ticket Refunds
  16. Save us! by Kohath · · Score: 3, Funny

    We need the government to save us from the consequences of the bad deal the government made last time.

  17. Re:Non-technical people making technical decisions by Etherwalk · · Score: 2

    So, take it from someone with over 20 years in IT. When you outsource technical functions you need to have your technical people vet the contract and you need to keep them to monitor and make sure that the company, you are outsourcing to, does their job.

    The reverse lesson is also true. When you make vendor/purchaser agreements or service agreements on which a lot relies, you should have your lawyer vet the contract. (A lot of the time people don't and wind up with how-the-hell-did-we-agree-to-this down the road). If it's for the sale of goods, make sure your lawyer knows and understands the Uniform Commercial Code (UCC) as it applies in your state. A lot of them don't.

  18. Re:They value control more than profit by isdnip · · Score: 2

    No, they want control even if it loses money.
    General Motors makes cars. They do not own the dealerships. They let dealers sell the cars. This is good for business. If Verizon made cars, they'd insist on owning the dealerships too, and would not let anyone else repair the cars, or sell parts. They might lose customers to other car companies who were more open, but they'd rather have 100% of $x than 80% of 2*$x, even though that's less. It's dumb DNA, but it's ingrained.
    What other business routinely prices well above the profit maximization level -- so high that they lose more business than the higher margins make up for? It's like Mikey D's charging $10 for a crappy burger, and when nobody shows up, raising the price to $20 to make up for it.

  19. Misuse of standard jargon by isdnip · · Score: 3, Informative

    In the cable business, "homes passed" is a standard metric. It means that service is available to those homes. When Charter is figuring out how much to pay for TWC, they ask about homes passed, because these are potential customers.
    Verizon used other meanings of the term, from street English, to mean something else. If it goes a couple of blocks away, it sort of passes, by their standard. If it goes right by the house but they won't offer service, it is still "passed". No cable company would say that, and that's not what the City meant when they negotiated their deal with Verizon.