Verizon has agreed to introduce FiOS fibre-optic home service in an additional 500,000 homes in New York City by July 2023, ending a complaint about Verizon`s inability to cable the entire city, as required by a franchise agreement. “Until now, there were three checkpoints required, in accordance with point 5.1.2 of the franchise agreement, June 30, 2010, June 30, 2011 and June 30, 2012. Please provide copies of all documentation and/or progress reports submitted by Verizon New York Inc. at these checkpoints. Verizon reacted strongly. A company spokesman, Raymond McConville, said in an email that on a day when the city is preparing for the biggest snowstorm of the season, it is sad that the mayor is focusing on pursuing legal action lightly. Verizon also hinted that it may decide not to extend its city franchise in three years. The franchise is asking Verizon to set aside a $50 million performance obligation, but by the end of this year it will be reduced to $35 million if Queens, Brooklyn and the Bronx have little service. The amount continues to decline each year. Even the initial $50 million is a drop in the estimated $6 billion bucket that Verizon will spend on the bet, or the tens of billions the company will make in terms of revenue. As part of the agreement, Verizon negotiated a number of ancillary agreements with community access organizations, better known as public access centers, in each district. I have not been able to verify them, but it is said that each of the centers will receive a decent payment per participant per month.
Of course, most Verizon subscribers will change from Time Warner or Cablevision, which already provide a community access fee, so it won`t be a new source of revenue for organizations, but only a guarantee that they won`t lose. The contract is 59 pages with 74 pages of schedules and ancillary agreements with community access organizations in each district. Verizon and the city`s Department of Information Technology and Telecommunications have worked out the details in 18 months of secret negotiations. As part of the agreement, Verizon promises to build a fibre-optic network to the site (FTTP), the gold standard of modern telecommunications, bringing the most powerful cables to every front door.