Fredericksburg/Spotsylvania County VA: Verizon cable coming?

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http://fredericksburg.com/News/FLS/2006/012006/01192006/161210

Communications company is building a local network, but current law is a roadblock.

Verizon is building a fiber-optic network in the Lee's Hill area of Spotsylvania County, which could provide a new option for local cable customers, said company spokesperson Harry Mitchell.

But the phone company isn't rolling out the local television service just yet if at all.

Verizon is supporting House Bill 881, which would allow them and other new companies entering the cable industry to bypass current laws that slow down the process.

Would-be competitors, such as local providers Cox and Adelphia, are backing an opposing bill, House Bill 1404, which says that newcomers to the industry should follow the same rules as those that are already providing pay-TV service.

The current law states that before another cable company can operate in the area, they have to have a franchise agreement that is approved by Fredericksburg City Council or one of the local boards of supervisors.

Franchise agreements outline what is required of the company to ensure quality and regulate how they can use the locality's right-of-way.

Companies that are recognized locally as telephone companies, such as Verizon, would need to seek additional approval to be allowed to offer cable via their phone lines. Approval could take anywhere from six months to two years.

"New entrants to the cable market shouldn't have to match up with the incumbent," Verizon's Mitchell said. He said existing cable operators are guaranteed customers through their franchises with the local governments. "Customers want companies to be as competitive as can be."

He said Bill 881 will speed up the franchise agreement process and be able to offer customers a new choice much faster.

Verizon's fiber-optic network would allow them to bundle and offer phone, television and Internet service. Fiber-optic technology delivers laser-generated pulses of light via hair-thin strands of glass fiber. It allows the carrier to move more information faster.

Verizon offered the service in Herndon in November. Virginia is one of the first of 16 states getting the service, called FiOS TV and high-speed FiOS Internet.

FiOS TV was initially launched in September in Texas, followed by Virginia and Florida.

FiOS Internet service also launched first in Texas, in August. Verizon is currently selling FiOS broadband products with speeds of 5, 15 and 30 Mbps, with 2 Mbps upstream on the first two products and 5 Mbps upstream on the third product, Verizon said.

The TV service already is delivering 22 high-definition channels because of the capacity allowed by fiber optics.

In Herndon, package prices range from about $13 to $40 a month, according to a written release.

Brian Scott, who heads Spotsylvania's Information Services Department, said Verizon approached the county last year to discuss a franchise agreement. He said they put Verizon on the negotiating table because it was during the time Adelphia was filing for bankruptcy.

"But we don't want any unfair advantage to go to any of the companies," Scott said. "We're trying to make sure that there's a level playing field with Cox and Adelphia and that the citizens are taken care of."

Spotsylvania Cable TV and Telecommunications Commission Chairman Herbert Pritchett Sr. said he is concerned about not being able to regulate them.

"The county could lose revenue off of it because there are franchise fees. And we'd have no control over them [as far as what they have to provide and where they could dig]," Pritchett said.

Verizon's Mitchell said that if it was to offer service to the area, they would pay franchise fees and that the municipalities would retain control of the right-of-ways.

"It's not taking away or taking control over municipalities," he said. "It's about bringing choice to customers quicker. We have no interest in disadvantaging local authorities at all."

Cox, which serves about 19,000 customers in Fredericksburg and Spotsylvania and Stafford counties, said they won't feel threatened if Verizon offers cable locally.

"We welcome the competition," said Gary McCullum, vice president and regional manager for Cox. "Our only issue has been, and still is, if we are both going to offer cable TV, we should both play by the same rules."

Adelphia spokesman Paul Jacobson did not comment other than to say their stance is in agreement with the Virginia Cable and Telecommunications Association. That group supports bill 1404.
 

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