Verizon wins right to offer cable service in Oyster Bay

2006-06-08 / Front Page

by Tiffany Elliott

The Verizon cable television franchise won its way into the the Town of Oyster Bay this week in what has become another round in a battle with Cablevision, which has been the primary cable service on Long Island since 1973.

The phone company, that has expanded its services to offer fiber optic cable television service, has also fought and won recent battles with the cable behemoth in Massapequa Park, the Town of Hempstead, the Village of Cedarhurst and in Rockland County's Nyack.

"At the end of the day, the real winners are the residents who will now have a choice about their cable service," said John Venditto, Town Supervisor. "We made our decision because the entire Town wanted to see competition introduced and we believed both companies were on a level playing field."

"We aren't saying don't grant the franchise. Just do it in terms that are financially fair," said Michael Olsen, vice president of legal and regulatory affairs for Cablevision during the public hearing who said his company was making sure the playing field was as level as it could be.

Cablevision's primary concern was that they are required, under their agreement with the Town, to operate and maintain a public access station (PEG), where residents come and film their shows, while Verizon is not in their new agreement.

"Verizon is offering a $15,000 grant, and $6,500 per year in lieu of providing community television. That doesn't come close to what we spend a year to run the studio," said Olsen who added that Cablevision pays approximately $300,000 a year at their Woodbury studio, which opened 2002. That price includes paid staff and training for producers.

"We are more than willing to meet with Cablevision and revisit this issue of relaxing or eliminating the public access facility. When that agreement was made, people didn't have video cameras," said Venditto who felt the station was "a bit of a dinosaur".

"Let's be realistic, times have changed since (that agreement in) the 1970s. Let's not be so nearsighted," he said.

While Venditto said he believed Cablevision was being too "tit for tat" with its new competitors' agreement, some said it was historically just that company's way of doing business.

"Don't be fooled, this is just about money and always has been," said John Kraft, a lawyer and Massapequa Park resident, who urged the board to accept the new franchise. "Cablevision will do anything to delay the competition so it can continue to get its money."

"Our residents are seeing an amazing 28 to 42 percent savings. If we had waited for Cablevision to be happy, we would still be waiting," said Massapequa Park Mayor James Altadonna who was on hand to talk about his Villages' Verizon versus Cablevision experience, which it okayed back in September 2005. "We are happy with the competition, the benefits and the service. I just want this board to know these stalling tactics are typical of Cablevision," he added.

But Cablevision believes they are doing their customers a justice by speaking out.

"The Town has benefited from our accuracy and will continue to do so," said Olsen.

Before Verizon's franchise was accepted in Oyster Bay, where 686 of their employees live, they established approximately 85 percent of their infrastructure before the application was granted and had invested $58 million in the Town, according to Matt Kirby, from Telecom Insight Group who spoke on behalf of Verizon.

"Most of the installation was aerial," said John Bonomo, director of Verizon's media relations. "These installations would have been done regardless of the town's approval because we are upgrading our entire network and offering our internet access in those areas."

Verizon expects 90 percent of its system to be built in two years and finished by the end of the summer, according to Bonomo.

Cablevision however, says that more details are needed in Verizon's build-out schedule.

"They say they are almost 90 percent done, but if they aren't held to that, anything can happen. It needs to be written in their proposal," said Olsen.

"We're not here to please Cablevision, just the Town of Oyster Bay," said Paul Trainor, a Mineola lawyer representing Verizon.

As per its current agreement, Cablevision gives back a five percent franchise fee to the Town, while Verizon would offer additional revenue sources from installation and fees.

The next step will be to get the green light from the Public Service Commission, which is not seen as a problem, according to Venditto.

"Although we appreciate the Town Board's work to require Verizon to enter this market on a level playing field, it should be noted that Cablevison's prices for comparable levels of service are lower, our products are better and we don't tack on hidden fees or charges like the phone company," said Bill Powers, Director of Competitive Media Strategies for Cablevision, after the franchise was granted.

As in other hearings, Verizon workers of all different job descriptions flooded the standing-room only board meeting. Even those nodding off under their black company baseball hats were paid for their time.

"We always get a great turnout at hearings," said John J. Bonomo, director of media relations for Verizon, who added that it was in the employee's best interests to expand the business which is why they were paid to attend the hearings.

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