Verizon’s Fire Island Petition Opposed by CLECs, State Commissions

AT&T supports Verizon’s petition, and used its comments to campaign for its own deregulatory wire center trial proposal. Verizon’s Voice Link service “works seamlessly” with a customer’s existing phone, and offers “comparable” voice communications capability to what was offered over the destroyed copper facilities, the telco said (http://bit.ly/15tKnmM). The question, said AT&T, is “not whether Verizon should be permitted to discontinue traditional wireline, TDM-based services -- that occurred when an act of nature destroyed the network facilities and infrastructure used to provide those services. Rather, it is whether a carrier in these circumstances can or should be required to build new wireline facilities in order to continue providing traditional wireline services using rapidly obsolescing TDM-based technology.” The devastation caused by the storm “only underscores the need for the Commission to quickly gain a better understanding of the issues posed by transitioning from traditional wireline infrastructure and services to newer alternatives and ultimately to all IP networks,” AT&T said.

"Given the extensive destruction to Verizon’s wireline infrastructure in these areas; the limited geographic scope of its request; and the unique engineering circumstances surrounding its request, USTelecom supports grant of the Verizon application,” the association of ILECs wrote (http://bit.ly/15tLdjC). Rebuilding the “outdated” copper landline facilities to restore service to 500 full-time residents of Fire Island could cost more than $6 million, and those expenses are unlikely to be recouped, USTelecom said, calling Voice Link a “reasonable” substitute. “Verizon is merely using the most efficient technology to best and most quickly serve consumers impacted by a catastrophic weather event."

"While Verizon’s petitions are captioned as applications to ‘discontinue’ service, Verizon effectively is asking to be relieved of the obligation to rebuild obsolete copper facilities that have already been destroyed by the hurricane,” said the Independent Telephone & Telecommunications Alliance (http://bit.ly/13k2xrO). The FCC requiring Verizon to replace the copper would “undermine its long-standing and important broadband policy initiatives” and put ILECs “at a competitive disadvantage” and “create competitive distortions in the marketplace,” the association of ILECs said. “The Commission cannot, absent the provision of governmental support, require carriers to repair or replace legacy facilities that have been destroyed, rendered inoperable, or become obsolete when a carrier has concluded based on sound business reasons that it is economically irrational to do so. This determination would constitute an unfunded mandate that would inhibit investment in fiber deployment to increase broadband capacity, expand broadband availability, improve network quality and the customer experience, and facilitate future product innovation."

CLECs see it differently. “In return for this ratepayer support to build their networks, ILECs assumed substantial obligations to both consumers and competitors that use the ILEC’s wireline network -- obligations that are reflected in provisions of the Communications Act and longstanding rules and policies of the Commission and state commissions,” said Cablevision (http://bit.ly/1ckSoOH). “An ILEC should not be permitted to unilaterally evade these obligations by deciding that it is in its own economic interest to abandon its wireline network."

To XO, Verizon’s discontinuance filings “represent an attempt by Verizon to use the Commission’s procedures to evade an issue of significance for telecommunications customers: whether, in the wake of a major natural disaster (such as Hurricane Sandy) an incumbent local exchange carrier can unilaterally make major network modifications, specifically replacing copper upon which many customers have come to depend with less-capable wireless services” (http://bit.ly/15tKAGO). XO reiterated its objection that Verizon “improperly” invoked its limited waiver during the storm to make network changes to copper facilities in Lower Manhattan that “were not a direct result of the damage from the storm.” The commission’s existing regulatory framework to address emergency situations is inadequate, XO said, agreeing with Public Knowledge comments that the commission should “provide guidance” to carriers about their obligations after a disaster. “The Commission should not permit natural disasters and made-made emergencies that cause damage to existing ILEC networks [to] be exploited by ILECs as opportunities to use Commission processes intended for very different circumstances as a means to undercut competition or cause harm to end users."

Taking no position on the specific services Verizon proposes to discontinue, Comptel took issue with “Verizon’s decision to replace its copper facilities with fiber in the wake of the storm without any regulatory oversight of the impact such replacement would have on the competitive providers that were using copper loops to provide DSL, Ethernet over Copper and other high speed, high capacity services to business customers that cannot be provided over the replacement fiber facilities,” the association said. “The Commission must look at the bigger ‘copper retirement’ picture when reviewing this discontinuance application in light of the fact that Verizon’s post-storm network changes will seriously curtail competitive providers’ last mile access to customers served or capable of being served prior to the storm.” Comptel also argued that Verizon’s petition is “premature,” and urged the commission to “evaluate Verizon’s application to abandon its wireline plant on Fire Island very carefully in light of Verizon’s pre-existing plans to cut the copper off and force customers onto wireless service."

Time Warner Cable said it’s okay with the discontinuance “provided the Commission takes appropriate steps to preserve Verizon’s statutory duty to provide interconnection and related intercarrier services” (http://bit.ly/15tMxD1). “Rather than invite or perpetuate any uncertainty about Verizon’s legal obligation to provide interconnection and related intercarrier services, the Commission should exercise its discretion to condition its approval of the requested discontinuance on Verizon’s commitment to continue adhering to its duties under Sections 251 and 252 notwithstanding its use of wireless technology.” Such an approach would be “consistent” with the FCC’s “deliberative approach to the wireline-to-wireless transition more generally,” TWC said. “Rather than set a potentially damaging precedent by allowing Verizon to replace wireline technology with fixed wireless without preserving the status quo with respect to its statutory obligations -- and thereby prejudge issues pending in the broader review of such transitions -- the Commission should put safeguards in place to ensure that this type of technological change does not disrupt existing intercarrier rights and obligations."

The New Jersey Division of Rate Counsel, the National Association of State Utility Consumer Advocates and The Utility Reform Network filed comments jointly as State Consumer Advocates urging the FCC to reject Verizon’s applications to make wireless-only service available in the westerns parts of Fire Island, saying the current proceedings were “premature.” “The Voice Link option offered as a substitute service is a step backwards for consumers in terms of reliability, and public safety, data communications capabilities, price and the provision of safe, adequate and reliable service at affordable rates,” said State Consumer Advocates in their comments. “Granting the Applications would allow Verizon to cherry pick its obligations as the carrier of last resort (COLR) while ignoring that the loop is used to provide intrastate and interstate services.” They accused Verizon of offering “bald assertions without empirical support” that the restoration of copper would not be possible or economic. By using Voice Link, Verizon “undermines the goal of affordable telecommunications and broadband services and may expose customers to poor service, and other disruptions,” they said. The State Consumer Advocates said a detailed study and input from all affected interests are needed on its wireline copper facilities. Public Notice DA 13-1474 does not apprise New Jersey consumers of the scope of services being discontinued and grandfathered and what services are available to consumers, and Verizon’s Section 214 applications should be denied or deferred pending individual state review, said the State Consumer Advocates.

The New Jersey Board of Public Utilities (NJBPC) also asked the FCC to reject Verizon’s application to allow Voice Link service to go into effect. They request a filing to the board from Verizon about Voice Link and time to evaluate its merits prior to FCC action of Verizon’s application. “Board Staff’s preliminary understanding of the service has yielded numerous unanswered questions as to the magnitude of the discrepancies between Voice Link Service and the existing service provided by Verizon,” said NJBPC.

The International Brotherhood of Electrical Workers Local 827, representing about 4,700 Verizon New Jersey workers, said it doesn’t object to Verizon’s attempt to provide temporary relief to Hurricane Sandy customers, but Verizon’s application for Voice Link is for a “new unproven wireless technology” where a “modified cell phone” is connected “to a box tethered to a customer’s home or business.” “Voice Link does not support numerous services long supported by the wireline network, including essential security and commercial services, as well as vital medical and emergency services,” said the union.

The New York State Public Service Commission (NYPSC) opposed Verizon’s application, though it had provided temporary approval for Verizon to deploy its Voice Link service on western Fire Island and other parts of New York in the aftermath of Hurricane Sandy. The NYPSC asked the FCC to deny or postpone Verizon’s application until the NYPSC makes its determination on Verizon’s deployment of Voice Link and its overall performance on Fire Island.