BAD news for NH residents!:
By Gordon Fraser
Eagle-Tribune
Before it even got in, Verizon Communications is pulling out of the New Hampshire cable television business, at least for now, a company spokeswoman said yesterday.
Since 2004, the telecommunications giant has spent billions of dollars across the country, laying fiber optic cable, creating a platform to offer telephone, Internet and cable television service. Many local government officials eagerly awaited Verizon's arrival, which they said would bring competition and lower prices to a market dominated by a single cable provider in each community.
Instead, Verizon spokeswoman Jill Wurm said the company has sent equipment and franchise negotiators intended for New Hampshire to New Jersey, where a single franchise agreement can be negotiated at the state level.
In the Granite State, Verizon would have to negotiate with each of the 23 communities in which it has installed fiber optic cable.
"So, since that's the mode of operation in New Hampshire, everything ... got reallocated," Wurm said.
She said Verizon could reinvest in New Hampshire as soon as six months from now, but said she couldn't guarantee any timeline.
"We're disappointed," said lawyer Robert Ciandella, who had been negotiating with Verizon on Salem's behalf. "We were trying to ... conduct a very effective franchise negotiation."
Ciandella's firm, Donahue, Tucker and Ciandella of Exeter, was negotiating on behalf of five other New Hampshire towns, as well, Ciandella said.
Like many towns, Salem had an "ascertainment" hearing last spring, he said. The hearing gave public officials and residents an opportunity to discuss the town's needs and goals for cable access. After that, Verizon had 30 days to submit a proposal and begin negotiations.
It never did.
Within the last few weeks, Ciandella said, the company contacted him to say it was not pursuing negotiations in New Hampshire.
Ciandella said the company does have a track record of seeking legislative solutions to the problem of negotiating town by town. "Verizon is exploring whether there's a political strategy that would allow it to avoid (local negotiations)," he said.
Wurm acknowledged Verizon has made efforts across the country to change laws requiring them to negotiate franchise agreements locally.
But, Wurm said, the company hasn't yet called for legislation in New Hampshire to change franchise procedure.
"We have not filed any legislation specific to that in New Hampshire just yet," she said.
The company could propose legislation as late as this fall to introduce a bill for the legislative session in January.
If such legislation were to go forward, it could affect a funding source for local governments. Companies pay a franchise fee to use local infrastructure.
In an earlier interview, Atkinson Town Administrator Russell McAllister said his town makes about $80,000 per year from its franchise agreement with Comcast.
But because money from the franchise agreement is based on the total number of customers, towns would not likely earn more money with the introduction of a new company. As cable companies split customers, so, too, would they split the cost of operating a franchise, Ciandella said.
Salem Town Administrator Henry LaBranche yesterday criticized Verizon's decision.
"I find their strategy rather bewildering," he said. "If, indeed, they've pulled out of the process, it's a rather premature reaction on their part."
http://www.eagletribune.com/siteSea...14155904?page=0
By Gordon Fraser
Eagle-Tribune
Before it even got in, Verizon Communications is pulling out of the New Hampshire cable television business, at least for now, a company spokeswoman said yesterday.
Since 2004, the telecommunications giant has spent billions of dollars across the country, laying fiber optic cable, creating a platform to offer telephone, Internet and cable television service. Many local government officials eagerly awaited Verizon's arrival, which they said would bring competition and lower prices to a market dominated by a single cable provider in each community.
Instead, Verizon spokeswoman Jill Wurm said the company has sent equipment and franchise negotiators intended for New Hampshire to New Jersey, where a single franchise agreement can be negotiated at the state level.
In the Granite State, Verizon would have to negotiate with each of the 23 communities in which it has installed fiber optic cable.
"So, since that's the mode of operation in New Hampshire, everything ... got reallocated," Wurm said.
She said Verizon could reinvest in New Hampshire as soon as six months from now, but said she couldn't guarantee any timeline.
"We're disappointed," said lawyer Robert Ciandella, who had been negotiating with Verizon on Salem's behalf. "We were trying to ... conduct a very effective franchise negotiation."
Ciandella's firm, Donahue, Tucker and Ciandella of Exeter, was negotiating on behalf of five other New Hampshire towns, as well, Ciandella said.
Like many towns, Salem had an "ascertainment" hearing last spring, he said. The hearing gave public officials and residents an opportunity to discuss the town's needs and goals for cable access. After that, Verizon had 30 days to submit a proposal and begin negotiations.
It never did.
Within the last few weeks, Ciandella said, the company contacted him to say it was not pursuing negotiations in New Hampshire.
Ciandella said the company does have a track record of seeking legislative solutions to the problem of negotiating town by town. "Verizon is exploring whether there's a political strategy that would allow it to avoid (local negotiations)," he said.
Wurm acknowledged Verizon has made efforts across the country to change laws requiring them to negotiate franchise agreements locally.
But, Wurm said, the company hasn't yet called for legislation in New Hampshire to change franchise procedure.
"We have not filed any legislation specific to that in New Hampshire just yet," she said.
The company could propose legislation as late as this fall to introduce a bill for the legislative session in January.
If such legislation were to go forward, it could affect a funding source for local governments. Companies pay a franchise fee to use local infrastructure.
In an earlier interview, Atkinson Town Administrator Russell McAllister said his town makes about $80,000 per year from its franchise agreement with Comcast.
But because money from the franchise agreement is based on the total number of customers, towns would not likely earn more money with the introduction of a new company. As cable companies split customers, so, too, would they split the cost of operating a franchise, Ciandella said.
Salem Town Administrator Henry LaBranche yesterday criticized Verizon's decision.
"I find their strategy rather bewildering," he said. "If, indeed, they've pulled out of the process, it's a rather premature reaction on their part."
http://www.eagletribune.com/siteSea...14155904?page=0
