City : Clearing the competition: Local officials fight proposed Verizon deal, could create monopoly
A group of Syracuse elected officials and community organizations came together last week to voice their opposition to the recently proposed deal between Verizon and other cable companies that would potentially end the competition for services between them.
The deal would create a partnership between Verizon and other companies under the SpectrumCo cable industry umbrella, which includes Comcast, Time Warner Cable, Cox and Bright House Networks, and would eliminate all competition, according to a March 26 Communications Workers of America article.
City officials and advocates from Syracuse, Albany, Baltimore, Boston and Buffalo announced their concerns about the partnership last week. Officials fear this deal would lead to higher prices, fewer options and a growing digital divide for consumers in the five cities and across the country, according to the article.
Officials from these cities voiced their concerns because Verizon has built its fiber-optic FiOS network in their surrounding suburbs, but it has failed to do so in each of the five cities, according to the article. The residents of these cities tend to have lower income and have a higher proportion of African-American and Hispanic residents than their suburban neighbors.
Jean Kessner, councilor-at-large of the Syracuse Common Council, said one of the most significant issues with the proposed deal is that it would disproportionately disadvantage the minority population in Syracuse. The company has neglected to provide its high-speed FiOS network in the city, where approximately 70 percent of Onondaga County’s minority populations reside.
‘Ultimately, it will deprive our residents, schools, local businesses and health care facilities of the benefits of the FiOS network that is available to their neighbors in the suburbs,’ Kessner said.
Kessner said Verizon’s FiOS network is available in 14 suburban neighborhoods that surround Syracuse, but the company has not yet made efforts to install the network within the city.
She said she would like to see Verizon’s FiOS network built throughout the Syracuse area, not just in the suburbs and areas that are most profitable.
‘We just feel that with the lack of competition that would result from this partnership, Verizon will have very little incentive to install its FiOS network in the city of Syracuse,’ said Syracuse Common Councilor Bob Dougherty.
In a letter to the Federal Communications Commission, Syracuse officials voiced their concern about the proposed end to competition between cable companies in the area.
Officials stated that ‘consumers benefit from competitive choice; small businesses benefit from truly high-speed connections to suppliers and customers; schools and hospitals benefit from education and health- related applications; communications workers benefit from the jobs building, maintaining, and servicing networks; and families and communities benefit from the 21st century jobs and expanded tax base.’
As a condition regarding the approval of company’s proposed partnership, Syracuse officials requested that the FCC require Verizon to expand its FiOS network to currently unserved areas in Syracuse that are inside its traditional telephone service area. This would solve the disproportioned services.
Said Dougherty: ‘We’re really hoping that the FCC takes our message seriously and sees the importance in creating equal access opportunities for the entire area.’
Published on April 3, 2012 at 12:00 pm
Contact Alexandra: adhitzle@syr.edu | @LexieHitzler