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The FIOS Fiasco: A Bait and
Switch
This summary and chapter about New Jerseys fiber
optic failure is from the upcoming "$200 Billion Broadband
Scandal", published by Teletruth, January 2006.
The Verizon ONJ Commitments vs FIOS
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Promised to Customers
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FIOS, 2006
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First deployment -- video
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1996
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A decade late, still doesnt work.
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Households wired.
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68% of the state by 2003.
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"0" 45 Mbps services.
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Speed, Bi-directional
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45 Mbps, 2 directions.
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Up to 30 Mbps/ down -5 Mbps
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Price
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$40 bucks
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$179.95 - $199.95
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Video
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384 channels
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NOT AVAILABLE YET
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Layout
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All Areas Equally
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Wealthy Areas Mainly
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Open or Closed?
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Open To ALL Competition
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Closed to ALL Competition
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Other Items:
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Customer Funded
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$2000.00 paid per household
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Verizon got Free Money.
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Cross Subsidization
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Customers paid for DSL, Long Distance and
Wireless
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Verizon got Free Expenses
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World is Laughing at US
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Korea and Japan
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100 Mbps, 2 directions
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30 Mbps,1 direction
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Korea and Japan
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$40
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$199
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A Few Essential Points Need to be Stressed:
- Under Opportunity New Jersey, over 68% of the state
should have already been wired by 2003. Today, "0"
households were offered the services promised in
1993.
- FIOS is over a decade late, at best. The fiber debut
was to be 1996, not 2006 in New Jersey.
- Speed: FIOS is not even close to the speed promised
in 1993. Todays FIOS is essentially a one-way
service, with the upstream being 5 Mbps or less, and the
top speed of 30 Mbps.
- FIOS Video Services are NOT available in New Jersey
yet.
- The ONJ Service promised had 384 digital channels.
FIOS has 180 video and music channels.
- Price: FIOS 30 Mbps service cost $179-$199 a month,
not $30-50 dollars. How is the FIOS price a
consumer product?
- FIOS is a Closed Network. Customers funded an
open to all competitors network with
common carrier obligations. FIOS does not
allow competitive services, video, etc.
- Verizon Pick and Choose vs Universal, Ubiquitous
Service. The original ONJ was to wire all communities,
urban, suburban and rural, equally, not just the richest
communities.
- Customers were overcharged $2000.00 per household
already for a service that they still cant get and
may never be available in their neighborhood, if at
all.
- No Guarantees: FIOS may never be rolled out. There
are no firm commitments to do anything.
- Customers Funded the long distance, DSL and wireless
deployments illegally, known as cross-subsidization.
- The World is laughing at us: Korea and
Japan have 100 Mbps, 2 directions, for $40. FIOS top
speed is 30 Mbps for $199.
Teletruth is a nationwide customer alliance,
focusing on broadband and consumer issues. Teletruth was a
member of the FCC Consumer Advisory Committee (2003-2004)
and has gotten back millions of dollars for New Jersey small
businesses through our auditing services and data that led
to class action suits against Verizon, New Jersey. To read
our extensive chapter on New Jersey see: http://www.teletruth.org/docs/OpportunityNJ.pdf
or visit Teletruth at http://www.teletruth.org
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