States
October 23, 2007
Verizon Settles Out, or Why We Need Competition
Verizon agrees to reimburse all users of their unlimited wireless internet plan who were wrongfully terminated. The NY State AG spokesman –
This settlement sends a message to companies large and small answering the growing consumer demand for wireless services. When consumers are promised an ‘unlimited’ service, they do not expect the promise to be broken by hidden limitations,” said Attorney General Andrew Cuomo. “Consumers must be treated fairly and honestly. Delivering a product is simply not enough - the promises must be delivered as well.”
Verizon also agrees to also pay a $150k fine to NY State. Approximately 13,000 customers have been wrongfully terminated through Verizon’s actions.
Its simple Verizon — if the contract has a data transfer limit defined in it, DO tell the Marketing Dept.
Filed under Legislation / Regulation, States, Verizon, Wireless by Dr. Dog
October 11, 2007
Congressional “spendthrifts” kill permanent Net Tax ban
The November 1st end to the current tax ban on internet access looms large with plenty of inaction on the part of lawmakers. While the do nothing US Senate is away on vacation, the US House judiciary committee shot down proposal after proposal to make the Net Tax ban permanent, instead approving a 4 year extension. The proposal is scheduled to go to a vote in the full House next week, with no guarantee the Senate will act on it even if approved by the House.
A permanent Net Tax ban presents a rare opportunity to put the genie back in the bottle and declare a small sliver of American commerce off limits to the tax man. American tax and user fees have become like more protection racket than responsible public policy. Time is running out! If you care, write to your representatives!
Filed under Legislation / Regulation, Municipalities, States by admin
October 3, 2007
Actually only half true
Art Brodsky at the website ‘Public Knowledge’ is passing on the myth that , that once FIOS always FIOS. Linky. Not so fast:
- There are customers that have both copper and FIOS. Many because their security companies they contract with can only work on copper. Write the right service order and you can keep both.
- There is the pesky situation in most States that copper is a tariffed service on the books. Regardless of the desires of Verizon if the customer insists on going back or its a new entrant in the service area they can get the copper service.
Now Verizon has a vested interest in driving/retaining people to FIOS:
- Their current take rate passed each household is about 20-25%. They need to drive that number up in order to reach break even in a given service area.
- Retention drives down their costs of course as they just change the bill out in the order system and don’t have to roll a truck and tech.
- Being fiber, environmental factors are less of a concern reducing their costs.
- The biggie of course for Verizon is labor. FIOS conceptually will reduce their labor costs to something like 3-4 FTE per 10000 lines vs the 7-10 it costs for copper.
Now, I won’t fault Verizon for wishing to keep a customer on FIOS. Its to their advantage. But the fact is if a customer pushes it both AT&T and Verizon must comply. I have seen the service that Verizon FIOS represents. Talk to anyone that is a FIOS customer for more than a month and most quote the ‘dead gun’ analogy — they won’t give it up.
Where it will get tricky is in new developments where the only thing going past the house is fiber. In that situation the customer may have no choice unless the HOA has contracted with a third party. Highly unlikely that a Verizon will run an FX line to a single house for copper in that instance. The costs would just be thru the roof.
Disclaimer: I am a former VZ employee.
October 1, 2007
Yet Another Reason We Need More Competition
In what has to be a turnaround of sorts, Verizon decides to NOT extend contracts after consumers change wireless plans. Altruism on Verizon’s part? Nah, Sprint got burned doing the same thing so Verizon decides to fold before they were next. More at the Linky.
linky
HT: Consumerist.
Filed under Courts, Legislation / Regulation, Sprint, States, Verizon by Dr. Dog
August 28, 2007
Earthlink feeling the pinch from the broadband duopoly
On Tuesday, EarthLink announced that it would shed 900 employees. The reason was simple, said Rolla Huff, CEO of the company. EarthLink, which has had four solid quarters of losses and a sinking stock price, needs to return value to its shareholders. And this means eliminating jobs that don’t help the company add subscribers or increase revenue.
Back in the dial up days, independent ISP’s had a fighting chance. The duopoloy was more like an octopoly, and all you had to do to compete was lease phone lines at the same price as anyone else and attach modems to provide last mile access. Broadband is another story, they own exclusive rights to the “last mile”. The “wholesale priced” access to the duopoly’s facilities is in fact priced up to make it virtually impossible to compete with them on price. Earthlink was trying to create their own third pipe via municipal wireless, but it is a long term investment, and full of potential political upheaval like they are currently experiencing in San Francisco. So Earthlink management has had to drop back 10 and punt 900 souls in the hopes of regrouping and finding a way to win in a fixed game. I wish them the best!
August 15, 2007
Forbes take on the DTV deal
What’s the most significant thing, if it works, about EoP? Convenience. Think about it. Guess what you give up:
- The long afternoons burnt for nothing because the Time-Warner or Comcast guy never shows. (But their records show he did… sigh.)
- The horrifying realization that they COULD burn down your house if they don’t do the drilling right.
- The dealing with the BS with the call center rep because the screwed something up.
Hmmm. Sounds like a win-win. But seriously, the ability to plug in the appropriate adapter into any wall socket and get some modicum of broadband service is not something to be taken lightly. If a homeowner had a choice, drilling holes in your house, vs giving up a power outlet I think the choice is clear.
The $100 question — does this make the power strip under my desk a LAN segment??
Filed under States by Dr. Dog
