The FIOS Fiasco: A Bait and Switch

This summary and chapter about New Jersey’s fiber optic failure is from the upcoming "$200 Billion Broadband Scandal", published by Teletruth, January 2006.

The Verizon ONJ Commitments vs FIOS

 

Promised to Customers

FIOS, 2006

First deployment -- video

1996

A decade late, still doesn’t work.

Households wired.

68% of the state by 2003.

"0" — 45 Mbps services.

Speed, Bi-directional

45 Mbps, 2 directions.

Up to 30 Mbps/ down -5 Mbps

Price

$40 bucks

$179.95 - $199.95

Video

384 channels

NOT AVAILABLE YET

Layout

All Areas Equally

Wealthy Areas Mainly

Open or Closed?

Open To ALL Competition

Closed to ALL Competition

Other Items:

Customer Funded

$2000.00 paid per household

Verizon got Free Money.

Cross Subsidization

Customers paid for DSL, Long Distance and Wireless

Verizon got Free Expenses

World is Laughing at US

Korea and Japan

100 Mbps, 2 directions

30 Mbps,1 direction

Korea and Japan

$40

$199

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. Today’s 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 can’t 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