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Unions still rail against Verizon-FairPoint deal Two telephone workers unions are arguing that even with the conditions imposed by the Maine Public Utilities Commission on the sale of Verizon's northern New England landlines to FairPoint Communications, the deal will still hurt the public. |
FiOS customers watch and waitBy DENIS PAISTE Customers of Verizon's FiOS high-speed Internet are concerned about how their service will be affected by the pending takeover of their fiber-to-the-premises equipment by FairPoint Communications Inc. "I had a lot of constituents very concerned over this," Sen. Robert Letourneau, R-Dist. 19, of Derry, said in a telephone interview last week. Derry is one of about 23 communities where Verizon deployed the fiber-optic lines that provide FiOS, and Letourneau is a FiOS customer. A decision still is pending in New Hampshire, but Maine utility regulators approved an agreement late Thursday modifying the terms of FairPoint Communications' proposed $2.7 billion buyout of Verizon's land lines in the three northern New England states. Vermont recently denied the original proposal but invited FairPoint to return with a modified version. Verizon made a strategic decision in August 2006 to stop its fiber roll-out in New Hampshire, which would have allowed it to offer television as well as high-speed Internet and digital phone service. FairPoint spokesman Jeff Nevins said, "We'll continue to support and maintain the network and service provided by the fiber network. Expansion of the network will be evaluated over time." "It is our intent to offer the same pricing and service offering that Verizon currently offers its FiOS customers," Nevins said. Verizon New Hampshire spokesman Jill Wurm said, "FairPoint's still going to be able to do the technology the same way, fiber to the premises, it's just going to have a different name associated with it." That's because FairPoint won't be able to use Verizon's trademarked "FiOS" name for the product. Letourneau has been a critic of FairPoint's plans to rely on expanding broadband Internet access by using DSL technology over copper phones lines. "It will stunt the growth of New Hampshire," said Letourneau, noting most businesses today need high-speed access. "We're going to be stuck with copper lines to run DSL. "I have DSL in my second home, and it's good, but it's nowhere near as good as FiOS," he said. "FiOS is at least four times faster. "There's another aspect to this too," he said. "If we don't have competition to the cable companies who offer high-speed access through their cable, there is no incentive for the cable companies not to raise prices," Letourneau said. Bundled packages In New Hampshire, FiOS customers can get Internet and phone service but not television. In neighboring Massachusetts, one of 13 states where Verizon is offering television over FiOS in competition with cable television operators, the service has been well-received. "It works very well. I'm a happy customer," Verizon FiOS TV customer Lynne Eddy, 56, of Southborough, Mass., said in a telephone interview. She switched to Verizon from cable provider Charter Communications. She believes the competition has meant better prices for customers. "I personally think it is (better) because I watch the papers to see the price-value relationships, and my experience was Verizon came out with a bundled package before Charter, but I had to wait for Verizon to come to my community," she said. The FiOS television set-up takes time, but "once you have it, it's great," she said. Verizon presented several draft television franchise agreements, including one in Salem, but spokesman Wurm said, "We were in baby steps of negotiation but never got past providing them a draft model." Wurm declined to say how many FiOS customers Verizon has in New Hampshire. FairPoint offers a competitive television product through DirectTV as part of its "Fullhouse" package, which includes high-speed Internet via DSL and phone service, Nevins said. Long-distance calling plans are also available. The company also plans to bundle Verizon Wireless cellular service under the FairPoint brand through a reseller agreement. Nevins said DSL service is available in 92 percent of FairPoint's existing territory in northern New England. In New Hampshire, FairPoint currently serves local telephone exchanges in Evans Notch, South Chatham, Stow and East Conway. FiOS vs. DSL In Salem, Verizon FiOS customer John Connell said, "I'll tell you I couldn't live without the Internet." Ninety percent of his Internet use is to run his business, Media Digital Corp., he said. Connell, 68, said he has had no Internet outages with FiOS, and the only problems he had related to a Verizon router, not the basic Internet service. "I've called them primarily about problems connecting to the router," he said. "It's been excellent, I really like it," he said. "Obviously, it's fast, and so forth," he said. Connell was disappointed when Verizon decided not to offer TV over FiOS, and now he's concerned about FairPoint taking over. "By what I've heard, I don't like it ," he said, noting FairPoint is "not financially in the same league as Verizon. "My understanding is the reason Verizon went with them is because of a tax write-off. That's a hell of a reason," Connell said. "I keep hearing questions whether or not they're solvent. Of course, I can always go back to Comcast." Ken Black, a Verizon installation and maintenance technician who also has FiOS at his Portsmouth home, said he loves the service. For people uploading images or running a business out of their home, the faster upload speed with FiOS makes a big difference, he said. "We don't have the television up here and we might never see it if this whole deal goes through with FairPoint," Black said. "Customers up here really need an option," he said. "I've got the (satellite) dish on my house and when it was snowing yesterday it went down a few times," he said last week. "If you want broadband access around here, you've got two options, basically, if you want something that's reasonable," Black said. "For me, it would be Comcast and us because DSL in my mind is old news." New Hampshire's Consumer Advocate Meredith Hatfield, who represents consumers before the Public Utilities Commission, said, "We haven't taken a specific position on FiOS because neither company has plans to do more in New Hampshire. Our focus has been on getting DSL to those who don't have it." Meanwhile, Comcast continues to improve its cable broadband offering, increasing speeds of Internet service to offer a choice up to 12 Mbps. Comcast spokesman Marc Goodman said the company developed a "power boost" technology that automatically increases the speed of its Internet service whenever a customer is downloading or uploading a large file or application. FairPoint spokesman Nevins said the company is experimenting with providing television via the Internet (IPTV) in Yelm, Wash. |
Kathy's US Politics Bloghttp://uspolitics.about.com/b/2006/09/04/the-politics-of-labor.htmThe Politics of LaborSince 2000, American worker productivity has increased 16 percent. Wages, on the other hand, have gone up only 1 percent for the "typical middle-income American worker." But between 2000 and 2005, "median CEO pay rose 84 percent to $6.05 million on an inflation-adjusted basis, according to [the Economic Policy Institute]." Often, CEOs get raises even when business performance slumps. Hourly workers get pink slips, and those still on the job work longer hours. In 2004, Americans worked an average of 1,824 hours per year. The OECD average was 1,628 hours, from 1,357 in the Netherlands to 1,826 in New Zealand (a much more agrarian country than the US). And how do we feel about this? According to Pew Research, compared to two or three decades ago, we believe we have less job security, more on-the-job stress, reduced retirement benefits, and reduced health coverage. Poverty, Minimum Wage Yet Congress remains bogged down on raising the minimum wage in the US. The real minimum wage (contrasted with nominal) has been on a fairly steady decline since the late '60s. Since its creation in 1938, 1997-2006 is the longest stretch with no adjustment in the federal level ($5.15/hour). There is a perception that only teenagers make minimum wage. However, according to the Bureau of Labor Statistics, 59.8 percent of all wage and salary workers are paid an hourly wage. Of minimum wage workers, eight in 10 are 25 or older. Only 7% are teens aged 16-19. Of the four census regions, red states (the south and the mid-west) have the most minimum wage workers. Over-the-top Rhetoric U.S. Education Secretary Rod Paige labeled one "a terrorist organization." Former House Majority Leader Tom DeLay, R-Texas, called them "a clear and present danger to the security of the United States." And U.S. Rep. Charles Norwood, R-Ga., claimed they employ "tyranny that Americans are fighting and dying to defeat in Iraq and Afghanistan" and are thus "enemies of freedom and democracy," who show "why we still need the Second Amendment" to defend ourselves with firearms. Why union-bashing? Unions "cost" business more money -- on average, union workers have better benefits and greater wages than non-union workers. And there appears to be a ripple effect, as well. "Princeton researchers found in industries that are 25 percent unionized, average nonunion workers get 7.5 percent more compensation specifically because of unionization's presence." And even though the conventional wisdom is that we independent -- individualistic -- Americans eschew unions on principle ... data suggest otherwise. "A 2005 nationwide survey by respected pollster Peter Hart found 53 percent of nonunion workers -- that's more than 50 million people -- want to join a union, if given the choice." Perhaps this disconnect -- worker concerns about job security, CEO compensation -- will become an issue in the fall elections. If it does, it's the GOP that will draw the short end of the stick.
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