Verizon is at it again in Virginia

Verizon's at it again, this time pushing a radical deregulation proposal before the Virginia Corporation Commission. Verizon wants the Commission to rule there's enough telecom competition in every region of the state to justify freeing the company of all regulation. This would allow Verizon to raise basic telephone rates as much as it wants after a three-year transition period.

At a hearing this week before the regulatory commission, the Communications Workers of America joined the Attorney General's office, the staff of the Virginia Corporation Commission, the U.S. Department of Defense, Fairfax County Board of Supervisors, members of the public, and other communications companies to oppose Verizon's drastic proposal.

CWA members rallied outside the Commission on the first day of the hearing for affordable, quality service, especially in rural areas.

Inside the hearing room, Communications Workers of America witness Charles Buttiglieri reported on a CWA survey of frontline Verizon employees. "In every region of the state, our members told us that Verizon is letting its copper network deteriorate as it shifts resources to building its fiber network in more affluent regions," Buttiglieri noted. "Verizon's outside plant is old, and when it goes bad, they are not replacing it. Instead, they Verizon tells technicians to do quick fixes. Our techs are called back on the same troubles over and over."

Buttiglieri emphasized that CWA supports Verizon's investment in its state-of-the-art fiber (FiOS) network. "FiOS is the future. But most Verizon customers won't get FiOS for years, if ever. Competition is not protecting these customers. The Commission must continue to regulate basic telephone service for the millions of Virginia residents who have no alternative."

CWA's expert witness Bion Ostrander urged the Commission to reject Verizon's application, noting that no other state in the nation has taken such a drastic step of total deregulation. He presented evidence to show that Verizon remains the dominant telephone provider in every region of Virginia.

Public witnesses Heyward Thompson and CWA-retiree Claude Reeson spoke passionately about the need for continuing regulatory oversight to protect consumers.

Thompson lives outside Buchanan, Virginia – a rural town north of Roanoke. Countering Verizon's claims of sufficient telecom competition in the commonwealth, Thompson declared

"There is no competition in Buchanan. We are relegated to dial-up, and in the foreseeable future I don't think there's going to be anything more than that… Verizon says that competition is alive and well in the Roanoke area, but it's not."

Thompson asked the commissioners: "How can a school child in Buck County on dial-up compete with a schoolchild in Arlington who has fiber?" He told of three pharmacists in his hometown who are trying to stay up-to-date on pharmaceuticals on a dial-up connection.

Thompson claimed that Verizon's operation in Virginia follows the national trend of focusing resources on wealthier, more densely populated areas like Arlington and Falls Church, leaving rural Virginians behind. As a former telecom worker, Thompson said that just 40 hours of work could configure a fiber cable running through the area to connect most homes in the area with DSL. But whenever he asks the company to do so, he's told Verizon lacks resources in that part of the state.

Claude Reeson, a Verizon employee for 27 years and current member of the Surry County Chamber of Commerce, echoed Thompson's concerns. He said his home county has no DSL service at all, even though a fiber cable runs right through the county – and right in front of Reeson's home.

Reeson blamed "cherry-picking telecom companies" leave rural communities behind in favor of higher profits in urban and suburban regions. Deregulating Verizon's price controls would ensure that this trend persists. The stakes, according to Reeson, couldn't be higher:

"Everyone in this commonwealth and in this country desperately needs access to universal, affordable high speed internet… to be able to compete with residents in other parts of the state, the country, and worldwide."

Audio from the hearing is available here. For Heyward Thompson's testimony, fast forward to 2:10:00; for Claude Reeson's scroll to 2:21:45.

Verizon proposal opposed (Richmond Times-Dispatch)

Union protests Verizon deregulation request (Richmond Times-Dispatch)

Hearing on Verizon's Application for Deregulation of Retail Services (Webcast)