Sunday, November 1, 2009

The Stupidity of the Franchise

As we wrote a few years ago and as was presented to Congress and the FCC at the time, the Franchise is the greatest barrier to entry for competing broadband. A comment on Zero Hedge gave me pause. The person states:

"On more than one occasion over the past 18 months, the Village of Croton has submitted revisions or comments on the TV franchise agreement to VZ, only to have those documents, which VZ appeared eager to have, go without a response. The Village of Croton regularly renegotiates franchise agreements with Cablevision, which both set a precendent in process and substance for the VZ FiOS TV matter, as well as show that we do conclude such agreements in timely fashion for other corporate applicants."

It is clear that this individual has no idea what he is speaking of. It is in his very statement. above which explains the problem It is 18 months, the 18 months of trying to get a franchise from a local board which tries to control a process of which it is totally inept at doing! The local franchise boards are adding tremendous costs to their town driven in most cases by their egos and ignorance, a deadly combination.

Franchise negotiations add to the costs as much as if not more than the fiber backbone. itself I have been there! It is Croton on Hudson and the town "fathers" who will just not get it! They are the ones who are denying the people access, not Verizon! I have seen this everywhere. This person continues:

"Both through our attorney and directly through the village's own contacts within the VZ empire, we have tired to elicit a response from VZ management, but without success. Each time we follow up, we get vague answers that do not appear to eliminate the possibility of FiOS TV coming to Croton, but offer no forward motion either. As of today, we still have no definitive answer, one way or the other. Indeed, my impression is that VZ has no intention of moving forward with the TV service in our community. More, in my discussions with VZ field personnel over the past month, there seems to be no indication that VZ is going to actually bring the TV service to Croton on Hudson. Whereas a year ago, the VZ personnel we touting the benefits of FiOS digital TV, today they say nothing."

These complaints and game playing by the town and NOT Verizon is what adds to the costs. I lived this in New Hampshire just a few years ago and even worse when at Warner Cable in the early 1980s. The Franchise process is one of the most cost wasting efforts in this country. One would have expected more from the Zero Hedge reader. Shame! Perhaps Cablevision is stonewalling Verizon, do you think!