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HomeMy WebLinkAbout2006-01-25 Board of Selectmen PacketPage 1 of 2 Hechenbleikner, Peter From: Schena, Paula Sent: Wednesday, January 18, 2006 2:17 PM To: Hechenbleikner, Peter Subject: FW: From: Philip Rushworth [mailto:phil@rctv.org] Sent: Wednesday, January 18, 2006 2:12 PM To: Schena, Paula Subject: Peter, FYI, I got this letter the mail today. Phil Rushworth 0 1/18/2006 Page 2 of 2 ver'700 Peter T.'Bowman Vice Y'resident w WVRt External Affairs t'eriron Coin inunicadous 185 F-inktin $Ircct, Room 1700 B0,mo, NIA 02110 Mr. Phil Rushwortlr Rending Community T ele:vision 224 Asir Street Reading, vlA 01867- Dear Mr..Rusltworth, You may have beard that die .Board of Sel"Imen is reviewing Verizon °s application fora video license in Rt:qtdino. I write to trill you snore about diesi, now video and telecotxnnunicatiarxs offerings, and to let you know that Verizon is eager to briztg video service: to your community. Verizon is leading the Charge to revolutioniz the wa1v we live., work-,,and C:C7TUmunicate.. We,= delivering: fiber optic coanections directly to the doors of loonies and small businmes in 'Reading. Customers' feedback has been tremendous, as theywelcnrne the power of our new leading-edge fiber network, and our advanced'voice and data services lino'.ran as Verizon FiOS'. Our network contains enough bandwidth ttx..olf r not just voice atad data, but also a genuine choice;'for %iideo see-vita, kriowtt as I- QS TV,` FiOS TV evill carry hundreds of eltattzit:Cs. of cliverse'prograxusrting, thousands of shows and ritnvies on;dernand, tall at prices that will be highly cOmpetitive with the:local cable provider. What FiOS TV Mean,; to Reading Cousutrters: * Close to 200 c.battttels in our'`expandc;d basie" packs 0 Diverse prograrnn-drrg; bigh quality, nultilirxgual no,. sI sports, and cntertainniern prograrant ng. o Breathtaking, high-definition TV pictures: * More than 1,000 tnusie, sports, ttnd feature movie presentations, 0 100 percent digital lineup available. e Sophisticated but easy to us parental controls. Before .lriOS `t`V comes to your home, however, Vcrizoa niitist obtain a video license from the Beard of Selecttncn. Veril..en has offered a stating, fair agreement that is the product of`tttonths of negotiations with town officials. Thanks to the town, leadership, Reading citizens are gettigaI closer to having a new, trusted choice for video services. Town offie:ials deserve thanks and recognition for this effort. The Board of Selectmen is o%pr cte d to. Vote on Verizon's request to offer FiOS:TV service on Wednesday, January 25. A ` YES" vote'by the Board means you could have: another choice: for cable through V'enzon. riOS TV within the.next few months. >~or rnoro information artd to register your support for real choice, please visit t ww V.verizonxorfthna atad click on the lint "Support Video Choice in Reading." At Verizon, we all truly believe that the hest in technology is yet to come - next in Reading". Regards, 1/18/2006 Page 1 of 1 Hechenbleikner, Peter From: frankburke [frankburke@myway.com] Sent: Wednesday, January 18, 2006 12:30 PM To: Reading - Selectmen Subject: Vote on Verizon cable licence To: Reading Board of Selectmen Re: January 25 vote on Verizon's application for a cable TV license Today, I received a letter signed by Peter Bowman, a VP at Verizon, inviting me to "register my support" for their license application. The letter gives directions to a link on Verizon's web site. I may have received this letter due to my Town Meeting Member status. I am not accepting Verizon's invitation to register my support. While I have not been close to the discussions on this issue, I understand that there may still be some disagreement between the Town and Verizon over some language issues regarding definition on a cable system. I urge the Board to "hang tough" with Verizon over this, and any other issues. Reading will have no better opportunity than now in contract negotiations. If this means that Verizon walks away from Reading, that's fine with me. Thank you for your consideration Frank Burke Town Meeting Member Precinct 2 No banners. No pop-ups. No kidding. Make My Way your home on the Web - httD://www.mvwav.com D 1/18/2006 Hechenbleikner, Peter From: Ray Jackson [rjack92773@aol.com] Sent: Thursday, January 19, 20061:19 PM To: Town Manager Subject: Support Verizon's video license application Dear Town Manager Hechenbleikner: I am writing to ask that you support Verizon's application for a video license because I want to control cable price increases. According to the Consumer Federation of America, average cable rates have risen nearly 60 percent over the past 10 years, and a recent FCC report stated that the average monthly cable bill increased 5.5 percent in 2004 - on top of an 8 percent increase the previous year. On the contrary, I have seen the price of other new technologies such as my cell phone and Internet service decrease. I believe these rate hikes are related to the fact most cable companies run as monopolies in local markets. Without competition, they have no motivation to control prices, or improve service. Meanwhile, Verizon has invested in Reading by installing its advanced fiber optic network, which offers video, Internet and voice services. Verizon not only offers us an alternative to cable, but will provide residents and local businesses with hundreds of channels and thousands of shows and movies on demand, all at lower prices. I hear our neighbors in Woburn will have access to Verizon's FiOS TV very soon. Please don't let the Town of Reading fall too far behind them. Our citizens also deserve the best technology available along with a choice for video services. Please vote in favor of Verizon's petition for a video license so Reading residents and businesses can take advantage of lower prices, more enhanced offerings and better customer service. Please make my vote as a long time Reading resident count Sincerely, Ray Jackson 316. Lowell St Reading , MA 01867 1 D Hechenbleikner, Peter From: Christopher Doyle [doyda@verizon.net] Sent: Thursday, January 19, 2006 8:45 PM To: Town Manager Subject: Give us cable choice! Dear Town Manager Hechenbleikner: My name is Christopher Doyle and I live at 101 Lowell Street. I was one of the first residents in Reading to sign up for the FiOS phone and internet service when Verizon began offering it last spring and I am very happy with their service,. I am watching with interest as Verizon gets ready to offer its new video service in Reading. I understand that this service, called FiOS TV, is going to provide a more robust channel line up with more enhanced offerings than are currently available today, all at better prices. Reading residents already have access to super fast FiOS Internet service, and once the Board of Selectmen gives Verizon permission, we will be able to take full advantage of this advanced fiber optic network with FiOS TV. I hear the Board of Selectmen are voting on January 25, and am asking that you vote in favor of Verizon's petition, which will bring citizens a choice for video services. Verizon has presented an agreement that will bring us more competition, better prices, and more channels offerings. Seems like something we all can support. Please move quickly and vote yes on Verizon's cable franchise as soon as possible. Reading residents want more choice. Thank you for your consideration. Sincerely, Christopher Doyle 101 Lowell St Reading , MA 01867 1 CV Hechenbleikner, Peter From: kelly marini [ptcruiser13@verizon.net] Sent: Thursday, January 19, 2006 8:31 PM To: Town Manager Subject: Support Verizon's video license application Dear Town Manager Hechenbleikner: I am writing to ask that you support Verizon's application for a video license because I want to control cable price increases. According to the Consumer Federation of America, average cable rates have risen nearly 60 percent over the past 10 years, and a recent FCC report stated that the average monthly cable bill increased 5.5 percent in 2004 on top of an 8 percent increase the previous year. On the contrary, I have seen the price of other new technologies such as my cell phone and Internet service decrease. I believe these rate hikes are related to the fact most cable companies run as monopolies in local markets. Without competition, they have no motivation to control prices, or improve service. Meanwhile, Verizon has invested in Reading by installing its advanced fiber optic network, which offers video, Internet and voice services. Verizon not only offers us an alternative to cable, but will provide residents and local businesses with hundreds of channels and thousands of shows and movies on demand, all at lower prices. I hear our neighbors in Woburn will have access to Verizons FiOS TV very soon. Please don't let the Town of Reading fall too far behind them. Our citizens also deserve the best technology available along with a choice for video services. Please vote in favor of Verizon's.petition for a video license so Reading residents and businesses can take advantage.of lower prices, more enhanced offerings and better customer service. Sincerely, kelly marini 18 Grove St Reading , MA 01867 1 Advnft~ LV Hechenbleikner, Peter From: Pokung Lin [blin100@gmail.com] Sent: Thursday, January 19, 2006 7:54 PM To: Town Manager Subject: Please Support Verizon's video license application Dear Town Manager Hechenbleikner: Hello, I am writing to ask that you support Verizon's application for a video license, mainly because I believe that we should have a choice in our cable provider. Sure, the price may go down or up, but personally, I think we just need a choice. People can make their own choices in cable. If they don't want Fios, then they can have Comcast. Verizon has invested in Reading by installing its advanced fiber optic network, which offers video, Internet and voice services. Verizon not only offers us an alternative to cable, but will provide residents and local businesses with hundreds of channels and thousands of shows and movies on demand, all at lower prices. I hear our neighbors in Woburn will have access to Verizon's FiOS TV very soon. Please don't let the Town of Reading fall too far behind them. Our citizens also deserve the best technology available along with a choice for video services. Please vote in favor of Verizon's petition for a video license so Reading residents and businesses can take advantage of lower prices, more enhanced offerings and better customer service. Thanks, and if this does pass, I hope you too, get Fios. Sincerely, Pokung Lin 976 Main St Reading , MA 01867 1 Hechenbleikner, Peter From: Joseph lacoviello Doe@joei.us] Sent: Thursday, January 19, 2006 7:51 PM To: Town Manager Subject: Please, Give us cable choice! Dear Town Manager Hechenbleikner: I am watching with interest as Verizon gets ready to offer its new video service in Reading. I understand that this service, called FiOS TV, is going to provide a more robust channel line up with more enhanced offerings than are currently available today - all at better prices. Reading residents already have access to super fast FiOS Internet service, and once the Board of Selectmen gives Verizon permission, we will be able to take full advantage of this advanced fiber optic network with FiOS TV. I hear the Board of Selectmen are voting on January 25, and am asking that you vote in favor of Verizon's petition, which will bring citizens a choice for video services. Verizon has presented an agreement that will bring us more competition, better prices, and more channels offerings. Seems like something we all can support. Please move quickly and vote "yes" on Verizon's cable franchise as soon as possible. Reading residents want more choice. Thank you for your consideration. Sincerely, Joseph Iacoviello 51 Lilah Ln Reading , MA 01867 1 D Hechenbleikner, Peter From: Thomas Tamburrino [ttamb@comcast.net] Sent: Thursday, January 19, 2006 7:18 PM To: Town Manager Subject: Please support Verizon's video license Dear Town Manager Hechenbleikner: We are in the midst of an exciting and revolutionary change in the way we work, live, and communicate. That's why it is critical that Reading citizens have access to all the services provided by Verizon's new fiber optic network. This network contains enough bandwidth to offer not just voice and data but also a genuine choice for video service. Verizon's alternative to cable is extraordinary. In Texas, Florida, and Virqinia, their customers can choose hundreds of channels of diverse programming, thousands of shows and movies on demand, and the prices.are competitive with cable's. With cable bills continuing to increase, it would be a welcome change to see competition impact cable prices as it has for other technology offerings. That's why I urge the Board of Selectmen to issue Verizon a video license as soon as possible. Thanks to your leadership, Reading residents and businesses are getting closer to having a new choice for their video services. Please vote to provide citizens with more choice, lower prices and better service offerings so we can take full advantage of this new state-of-the-art fiber network right away. The decision to de-regulate the cable industry has been a total failure due to the fact there has been no competition. I have complained every year to Comcast about their increasing the rates at double the inflation rate since de-regulation, each time they have sent me back a reply saying what a great value it is, yes, for the company. When Verizon came out with a lower broadband rate in their DSL, I again wrote and they said they were examining their price point for broadband, and apparently they decided to keep overcharging. Now DSL is available for as little as $14.95 per month, still Comcast arrogantly refused to lower their prices.. I feel no loyalty to this company, and once Verizon is allowed to provide cable access I will switch all my three accounts to them without hesitating. Have dealt with them on my wireless account and family phone service. They are much more knowledgeable, courteous, and transparent in their dealings with their customers. Please, please, please give Verizon the ok. Sincerely, Thomas Tamburrino 54 Parkview Rd Reading, MA 01867 1 Hechenbleikner, Peter From: EDWARD PEDDLE [edward.k.peddle@us.army.mil] Sent: Thursday, January 19, 2006 3:22 PM To: Town Manager Subject: Give us cable choice! Dear Town Manager Hechenbleikner: I am watching with interest as Verizon gets ready to offer_ its new video service in Reading. I understand that this service, called FiOS TV, is going to provide a more robust channel line up with more enhanced offerings than are currently available today - all at better prices. Reading residents already have access to super fast FiOS Internet service, and once the Board of Selectmen gives Verizon permission, we will be able to take full advantage of this advanced fiber optic network with FiOS TV. I hear the Board of Selectmen are voting on January 25, and am asking that you vote in favor of Verizon's petition, which will bring citizens a choice for video services. Verizon has presented an agreement that will bring us more competition, better prices, and more channels offerings. Seems like something we all can support. Please move quickly and vote "yes" on Verizon's cable franchise as soon as possible. Reading residents want more choice. Thank you for your consideration. Sincerely, EDWARD PEDDLE 273 Grove St Reading , MA 01867 1 Hechenbleikner, Peter From: paul cain [paulc193@excite.com] Sent: Thursday, January 19, 2006 2:45 PM To: Town Manager Subject: Please support Verizon's video license Dear Town Manager Hechenbleikner: I currently subscribe to Verizon Fios for my telephone and internet access. I have found the system both fast and reliable. I would like to see an alternative to Comcast, if only to bring some competition to cable TV. Prices for the existing cable TV are too high for my retirement income, and I would welcome alternative means to obtain cost affordable cable TV. I urge the Board of Selectmen to issue Verizon a video license as soon as possible. Thanks to your leadership, Reading residents and businesses are getting closer to having a new choice for their video services. Please. vote to provide citizens with more choice, lower prices and better service offerings so we can take full advantage of this new state- of-the-art fiber network right away. Sincerely, paul cain 319 West St Reading , MA 01867 Hechenblefter, Peter From: James Ruszkowski D.ruszkowski@geticon.com] Sent: Wednesday, January 18, 2006 6:23 PM To: Reading - Selectmen Subject: Verizon's Video License Request Dear Selectmen, I am writing to request that you support, and vote "YES" to Verizon's request for a video license. Competition will help keep subscription cost down and will ultimately deliver better service to the people of Reading when we have the opportunity to chose video providers. Comcast has been raising fees every year since it's inception. Without any competition they will continue to do so. Please support Verizon in it's request to provide an alternative to the people of Reading.. From what I have been reading in the Chronicle they plan to provide support to our local RCTV broadcast company. Please don't let a disagreement in the definition of "Cable" prevent delivering a leading edge service that would benefit the whole town. We should learn from the past as with the landfill.development, change is inevitable and I believe that the landfill's completed development project has turned out for the better good of the town. Technology is continuously evolving, if the Town of Reading wants to stay ahead with future technologies we can not remain stagnant. Please vote YES! An e-mail response on your position would be much appreciated. Sincerely, James A. Ruszkowski 74 Forest Street Reading, MA 01867 781-944-2752 Home 1781-223-2738 Cell D Hechenbleikner, Peter From: scott spinney [sspinney@comcast.net] Sent: Wednesday, January 18, 2006 7:51 PM To: Town Manager Subject: Please support Verizon's video license Dear Town Manager Hechenbleikner: We are in the midst of an exciting and revolutionary change in the way we work, live, and communicate. That's why it is critical that Reading citizens have access to all the services provided by Verizon's new fiber optic network. This network contains enough bandwidth to offer not just voice and data but also a genuine choice for video service. Verizon's alternative to cable is extraordinary. In Texas, Florida, and Virginia, their customers can choose hundreds of channels of diverse programming, thousands of shows and movies on demand, and the prices are competitive with cable's. With cable bills continuing to increase, it would be a welcome change to see competition impact cable prices as it has for other technology offerings. That's why I urge the Board of Selectmen to issue Verizon a video license as soon as possible. Thanks to your leadership, Reading residents and businesses are getting closer to having a new choice for their video services. Please vote to provide citizens with more choice, lower prices and better service offerings so we can take full advantage of this new state-of-the-art fiber network right away. Sincerely, scott spinney 323 South St Reading , MA 01867 1 t (CP Hechenbleikner, Peter From: Keith Becker [keith.becker@verizon.com] Sent: Wednesday, January 18, 2006 11:08 AM To: Town Manager Subject: Please support Verizon's video license Dear Town Manager Hechenbleikner: We are in the midst of an exciting and revolutionary change in the way we work, live, and communicate. That's why it is critical that Reading citizens have access to all the services provided by Verizon's new fiber optic network. This network contains enough bandwidth to offer not just voice and data but also a genuine choice for video service. Verizon's alternative to cable is extraordinary. In Texas, Florida, and Virginia, their customers can choose hundreds of channels of diverse programming, thousands of shows and movies on demand, and the prices are competitive with cable's. With cable bills continuing to increase, it would be a welcome change to see competition impact cable prices as it has for other technology offerings. Again this year COMCAST has once again increased the cost of their service to the resident of Reading. In this day and age, when annual salary's increases do not keep up with the cost of living, I feel that COMCAST needs to have competition in Reading in order to put a end to their yearly price increases. This is not for the Town, but for the residents of the Town of Reading who have provided to the Town, the ability to rebuild our schools by voting to increase our taxes. It is time for the Town Government in Reading to give back to the people it represents by granting this license to Verizon. That's why I urge the Board of Selectmen to issue Verizon a video license as soon as possible. Thanks to your leadership, Reading residents and businesses are getting closer to having a new choice for their video services. Please vote to provide citizens with more choice, lower prices and better service offerings so we can take full advantage of this new state-of-the-art fiber network right away. Sincerely, Mr. & Mrs. Keith Becker 126 Charles St Reading , MA 01867 1 D Hechenbleikner, Peter From: Theresa Boucher [theresa.boucher@Verizon.net] Sent: Wednesday, January 18, 2006 1:03 PM To: Town Manager Subject: Support Verizon's video license application Dear-Town Manager Hechenbleikner: I am writing to ask that you support Verizon's application for a video license because I want to control cable price increases. According to the Consumer Federation of America, average cable rates have risen nearly 60 percent over the past 10 years, and a recent FCC report stated that the average monthly cable bill increased 5.5 percent in 2004 on top of an 8 percent increase the previous year. On the contrary, I have seen the price of other new technologies such as my cell phone and Internet service decrease. I believe these rate hikes are related to the fact most cable companies run as monopolies in local markets. Without competition, they have no motivation to control prices, or improve service. I have lived in Reading for over 12 years and have not had the ability to chose my local cable provider. My cable service has transitioned from one company to another (several times) with no choice by me. Meanwhile, Verizon has invested in Reading by installing its advanced fiber optic network, which offers video, Internet and voice services. Verizon not only offers us an alternative to cable, but will provide residents and local businesses with hundreds of channels and thousands of shows and movies on demand, all at lower prices. I hear our neighbors in Woburn will have access to Verizons FiOS TV very soon. Please don't let the Town of Reading fall too far behind them. Our citizens also deserve the best technology available along with a choice for video services. Please vote in favor of Verizon's petition for a video license so Reading residents and businesses can take advantage of lower prices, more enhanced offerings and better customer service. Sincerely, Theresa Boucher 387 West St Reading , MA 01867 1 0 Page 1 of 1 Hechenbleikner, Peter From: Jean DiPasquale [dipasqualej@verizon.net] Sent: Wednesday, January 18, 2006 3:02 PM To: Town Manager Subject: give us competition with comcast support verizon please support verizon to bring video to reading. comcast needs to have competition as they increase bills any time they want to over the years 1/18/2006 ~V Hechenbleikner, Peter From: Richard McCulley [richardmdculley@hotmail.com] Sent: Wednesday, January 18, 2006 2:47 PM To: Town Manager Subject: Support Verizon's video license application Dear Town Manager Hechenbleikner: I am writing to ask that you support Verizon's application for a video license Because I actively support the concept that competition will keep prices down and quality. I have lived in Reading for 25 years and I have been upset that Comcast's rates have escalated far more than general prices while their quality and response to customer complaints has been horrible. Please allow us to have a choice in providers. Thank you Sincerely, Richard McCulley 52 Wakefield St Reading , MA 01867 1 Hechenbleikner, Peter From: Corinne Shea [Beanies781 @aol.com] Sent: Wednesday, January 18, 2006 2:39 PM To: Town Manager Subject: Support Verizon's video license application Dear Town Manager Hechenbleikner: I am writing to ask that you support Verizon's application for a video license because I want to control cable price increases. According to the Consumer Federation of America, average cable rates have risen nearly 60 percent over the past 10 years, and a recent FCC report stated that the average monthly cable bill increased 5.5 percent in 2004 - on top of an 8 percent increase the previous year. . On the contrary, I have seen the price of other new technologies such as my cell phone and Internet service decrease. I believe these rate hikes are related to the fact most cable companies run as monopolies in local markets. Without competition, they have,no motivation to control prices, or improve service. Meanwhile, Verizon has invested in Reading by installing its advanced fiber optic network, which offers video, Internet and voice services. Verizon not only offers us an alternative to cable, but will provide residents and local businesses with hundreds of channels and thousands of shows and movies on demand, all at lower prices. I hear our neighbors in Woburn will have access to Verizon's FiOS TV very soon. Please don't let the Town of Reading fall too far behind them. Our citizens also deserve the best technology available along with a choice for video services. Please vote in favor of Verizon's petition for a video license so Reading residents and businesses can take advantage of lower prices, more enhanced offerings and better customer service. Sincerely, Corinne Shea 192 West St Reading , MA 01867 I Q000001g JAN9VERIZONHRG(1).tXt 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 COMMONWEALTH OF MASSACHUSETTS HEARING IN RE: VERIZON AND TOWN OF READING BEFORE: Peter I. Hechenbleikner, Town Manager, and Board of selectmen MEMBERS: Camille Anthony, Chairperson Ben Tafoya, Member James Bonazoli, Member Joe Duffy, Member Richard Schubert, Member Paula Schena, secretary PRESENT: For the Town of Reading: William Solomon, Esquire 319 Main street Stoneham, MA 02180 special counsel for the Town For verizon: Peter T. Bowman, Vice-President, External Affairs verizon 185 Franklin Street Boston, MA 02110 (617) 743-8874 Paul C. Trane, Principal consultant, and John L. Harrington, Esq. verizon, Telecommunications Insight Group 38 union square Somerville, MA 02143 (617) 628.3010 WIDOMSKI COURT REPORTING (781) 246.0710 2 Page 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt Thomas W. Antonucci, Esquire Wiley Rein & Fielding, LLP 1776 I< Street NW Washington, D.C. 20006 (202) 719-7049 Also Present: Marie C. Lasota, Verizon M. Eric Edgington, Verizon Andrea Dudley, Verizon Mary Rafferty, Verizon Town Hall Reading, MA Monday, 7:00 p.m. January 9, 2006 WIDOMSKI COURT REPORTING (781) 246.0710 3 1 CHAIRPERSON ANTHONY: I'll call to Page 2 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt order on January 9, the Board of selectmen, and first on the agenda is a continued public hearing for the verizon who we're in negotiations with a cable contract. So, Pete, do we turn it over to you? MR. HECHENBLEIKNER: Sure. Just to remind you where we are, there are copies, draft of minutes in your material, just to remind you of certain of the issues where we left after the last meeting which was on December 19 was for verizon to get back to us on several issues. one was the issue of the definition of cable system; one was with additional information on providing an accelerated schedule for residential' connections; and the other was on how the business installations would be addressed. You have gotten a.couple of e-mails and other items of. correspondence. There's an e-mail from Peter Bowman from verizon. It's addressed to the board members. There's also an e-mail from Susan Darling and from Lawrence Darling, and then in tonight's packet, you have WIDOMSKI COURT REPORTING (781) 246.0710 4 1 2 3 an e-mail from Ed Riopelle, I guess it is, on the issue of on demand service. And also from Fred van Magness and that was it on this matter. Page 3 0 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZON14RG(1).tXt I guess tonight we are not anticipating a conclusion to this, as much as I think everybody in the room would probably like to have that. we still have some outstanding issues so this is sort of a progress report for verizon to make on the various issues that are before you. once those issues are addressed, as counsel reminded, there are still some issues that we --minor issues we have to clean up. when we finish the update, then we would recommend a continuation until we're suggesting January 25 as a Wednesday, if the board is available, at that date. And we would anticipate that that would be the final continuation. CHAIRPERSON ANTHONY: Okay. so we have would you like to say anything before verizon introduces who is here? MR. SOLOMON: Very briefly, madam chair. Just one follow up to Pete's comments. The manager with the assistance of his WIDOMSKI COURT REPORTING (781) 246.0710 5 1 2 3 4 5 committee has brought this process forward and there are some compromises that the town tries to make on this process in order to provide to allow verizon to provide a competitor for cable service. Now if in that, if that process does Page 4 JAN9VERIZONHRG(1).txt 6 not succeed, then at one point and I believe 7 that's going to be the 25th of this month where 8 the hearing will be completed, the record 9 finalized, this board will have to make a 10 decision or will be making a decision with 11 respect to whether to grant the license or not 12 to grant the license. Now that decision is 13 somewhat different than the negotiation process 14 that occurs that in that negotiation process, 15 the town may and has tried to make compromises 16 in order to see if it can obtain a competitor in 17 the cable field. However, if that sort of 18, agreement can't be reached on those substantive 19 issues, then this board will need to decide the 20 up or down based on the proposal that's in the 21 record and under the guidelines of state and to 22 some extent federal mostly, and state law 23 regulation. Therefore, with respect to that 24 decision, it may well be as you look at the 0 WIDOMSKI COURT REPORTING (781) 246.0710 6 1 document, you decide that there is a number of 2 issues have not been addressed to your 3 satisfaction, even though it would have been 4 that if an agreement was reached, you might have 5 compromised some of those issues. so, I.want to 6 keep separate the idea that yes, there are 7 compromises being made. Page 5' 0 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt some of these issues are being discussed here today but that doesn't mean that if you're formally deciding whether to grant or deny when an agreement has not been reached, that you may not look at those issues and make a determination one way or the other as to whether or not a license is deserved.by verizon. So, keeping those two issues separate, I think we're here today to hear from Verizon, ask them questions about any issues you have questions about, and then prepare for the final day of the hearing and your determination on that day of hearing. CHAIRPERSON ANTHONY: Can I just ask how many times have you met since we were with you last? MR. SOLOMON: We didn't meet in WIDOMSKI COURT REPORTING (781) 246.0710 7 1 2 3 4 5 6 7 8 9 person. we had two, I had some telephone conversations with the representatives. we had a conference call this past week with the. manager, myself, Paul Trane who's a representative of verizon, and Tom Antonucci, counsel for verizon and Peter Bowman was also in on the conversation. we had, I think, a good substantive discussion of the issues that we're discussing here today but we have not yet Page 6 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt reached an agreement on those issues. At least as of that date. CHAIRPERSON ANTHONY: How many issues are we down to? MR. SOLOMON: Again, for purposes of prioritizing, there are three issues that are being discussed here today. As mentioned, the definition of cable system was a large paradigm issue as we call it and then the issues brought up by this board, the provision of cable service to businesses, and the timing of the provisions of cable service throughout your community. CHAIRPERSON ANTHONY: Right. MR. SOLOMON: Again, that's not to say that when you have to make a difficult decision WIDOMSKI COURT REPORTING (781) 246.0710 8 1 2 3 4 5 6 7 8 9 10 11 with respect to the proposal that's before you, you might not look and determine that the form of proposal is lacking when you have to judge it on an up or down boat but for purposes of negotiations, we're focusing at this time on the three major issues because we believe if we can address these three major issues, we're hopeful that all the other issues will fall into place. CHAIRPERSON ANTHONY: okay. And when is the period up for negotiation? MR. SOLOMON:. Well, there's a state Page 7 0 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt regulation that may or may not apply which takes you 12 months from the initiation of the process which I believe is February 3 but I would have to double check the dates. I take it the initiation of the process is your letter to the cable division and I think that's a February 3 date. The date could always be extended by requesting a waiver from the cable division. It's not clear whether the cable division believes that date applies in the scenario we're in. There's some questions folks have as to whether that date applies when you initiate the process of the Board of WIDOMSKI COURT REPORTING (781) 246.0710 9 1 2 3 4 5 6 7 8 9 10 11 12 13 selectmen which is what happened here as opposed to when the process is initiated by a petition from a third party or a cable company. so there's some question about that 12 months. However, the manager has stated, and this is your decision as the board, that this board has many issues you're dealing with, including issues as basic to life as water, and that the board he feels would want to make its decision on the fairly shortly and one date we looked at for that was Wednesday, January 25, I believe, as a date for the continued hearing and then most likely your decision but again, Page 8 0 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).txt that's your determination. CHAIRPERSON ANTHONY: Well, I just want to state up front that I think we need to know when the end date is. we need to know what the issues are outstanding and we either decide we can agree or don't agree but we don't want to keep having continued hearings. so, I'm hoping that tonight we establish what the ground rules are going to be for moving forward because I don't think any of us want to keep coming back to continued hearing. we all know what the lay WIDOMSKI COURT REPORTING (781) 246.0710 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 of the land is so I think we just have to... MR. HECHENBLEIKNER: The sense was whatever the date of continuation next is, that that will be the end of the hearing process, basically. we recommend that be the end. Verizon has indicated that this gives them enough time to address the things that they need to address. CHAIRPERSON ANTHONY: And I assume we're on the same page as to when expiration of the one year is or not. I think we need to know this. If we're on the same page or not, we need to get on the same page is, I guess, what we're saying. MR. TRANS: Madam chairperson, my name Page 9 0 16 17 18 19 20 21 22 23 24 JAN9,VERIZONHRG(1).tXt is Paul Trane representing verizon. CHAIRPERSON ANTHONY: Paul, before you speak, I didn't introduce gill Solomon. For people in the audience, he's the town attorney on this case, hired by the town so that's gill Solomon. Paul, go ahead. MR. TRANE: Conversations with the manager and Mr. Solomon relative to the 12-month WIDOMSKI COURT REPORTING (781) 246.0710 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 rule there is as gill noted some ambiguity of when the division, the cable division would look at when the process started. I think both sides have noted if it's in our mutual interest to extend, we would jointly seek a waiver from the division. CHAIRPERSON ANTHONY: All right, that's fine. Paul, do you want to introduce your whole crew up? MR. TRANE: We have a few people here. This is Peter Bowman from state government affairs group; Marie Lasota from verizon Legal, Tom Antonucci who you folks have met at the last hearing; Eric Edgington, also from verizon legal, and John Harrington, also from our firm. CHAIRPERSON ANTHONY: What does John do? Page 10 0 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt MR. TRANE: John is a negotiator at our firm as well. There are.other folks as well, Andrea Dudley, Mary Rafferty from various facets of the Verizon FIOS FTTP Project. Madam chairperson, I would just as Bill noted, there are really three issues that we came to talk about tonight. The cable system WIDOMSKI COURT REPORTING (781) 246.0710 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 definition issue is one. That is important to Verizon and one that we continue to talk about with the manager and Mr. Solomon to try to meet some of their needs as they see it. we believe the definition provides sufficient coverage for the town, although Bill and I and Tom and the manager have spoken about other ways to maybe meet some of their concerns and we continue to talk about and we'll continue to do so in the days ahead. AS it relates to the cable service for businesses and cable services as a whole to Reading, what we took away from the last meeting and the last hearing was that you we wanted to provide more definition of how that build out is occurring in Reading and when the community as a whole will be served. The person who took charge of that from our last meeting is Peter Bowman, so, if I could ask Peter to come up and Page 11 0 20 21 22 23 24 JAN9VERIZONHRG(1).txt talk to those two,specific issues of the businesses and the build out, I would appreciate that. CHAIRPERSON ANTHONY: Sure. MR. BOWMAN: Thanks Paul. WIDOMSKI COURT REPORTING (781) 246.0710 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 CHAIRPERSON ANTHONY: Unless you want to see the cafeteria menu, I think it's disruptive. I won't say it's more interesting, Peter. MR. BOWMAN: I won't be insulted. Thank you, madam chair, and fellow members of the board. You know, we echo your concerns and we just can't thank you enough for the time you have spent on this and Peter has and Attorney Solomon. So, we are on the same page with you that we're really trying to get a franchise and license here in the town of Reading. I just really once again as I did the last time we were here, just thank you for your professionalism and willingness to work with us on this. And really, we as you, are just trying to ensure the best possible competition and additional services here in the town of Reading for both businesses and residents and as Paul said, that's mainly what I wanted to focus on. Page 12 JAN9VERIZONHRG(1).tXt 22 clearly we have made a multimillion 23 dollar investment here in Reading to build out 24 our fiber network. I think I just would take a 0 WIDOMSKI COURT REPORTING (781) 246.0710 14 1 couple of minutes, if I could, just to expand on 2 how we did that and then hopefully in that 3 process, to build more comfort around what we 4 have done and your ultimate support on our 5 agreement. 6 what we have done is built the 7 fiber-to-prem network. That's what we call it. 8 what that is to take fiber and bring it 9 throughout your community and bring it right to 10 the premises so it's not fiber to a node, or 11 anything like that; it's fiber to the premises. 12 Clearly this networking carries video, voice and 13 data for the residents and businesses of 14 Reading. What we are trying to do here is 15 introduce competitive services and competitive 16 pricing. 17 Today in the telecommunications 18 industry, it's just unparalleled competition of 19 companies and unprecedented competition of 20 services. we view this infrastructure that we 21 have invested here in Reading is an economic 22 development. It's an economic engine for the 23 town. It's a next generation network. It Page 13 0 24 JAN9VERIZONHRG(1).tXt improves reliability of services. WIDOMSKI COURT REPORTING (781) 246.0710 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Like I said, whether it's cable or video, voice data so just also gives you a much more reliable network and it satisfies the need for speed that end users want more and more of that. It's a historic upgrade for us to be moving away from our copper-based network to our private-based network to a totally fiber-based network which is really what exists now here in Reading and it's a direct connection to the premises, as I said. It has capacities up to 100 megabits. I want to take this opportunity now to address you two specific questions'as Paul said and we took away from the meeting was really where we are in the actual build. we overlaid our existing network with fiber so we came out of our central office. If we're in an aerial situation, we overlaid that network entirely with fiber. If we're in buried areas like downtown, I'll get into that a little bit more, and then also the residential buried developments, I'll talk about also a little bit more. But where it's aerial, we went out and did that. Page 14 0 JAN9VERIZONHRG(1).txt WIDOMSKI COURT REPORTING (781) 246.0710 16 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 so, if you look at the town from a geographical perspective, we have fiber in 96 percent of the town today. where it's throughout the community today, 96 percent on a geographical basis with really the four percent that isn't covered there are the buried developments. so the residential buried developments. And in those cases, we are going past those developments. we're just not going down the streets because we would need to be underground to make that happen or go through existing conduit or direct buried or whatever but I'm not sure that the last time we were here that that came out clearly: That the network is throughout the entire community today. so it isn't it's going by the buried developments and it's also going by multidwelling units so condominium complexes, apartment complexes. As a matter of fact, we have actually put the network into some of the multidwelling units already. So Summit Towers, Peter Sanborn Place, Frank Tanner Place, we have actually gone into those, negotiated with the property owners, gotten in and deployed our network up into the WIDOMSKI COURT REPORTING (781) 246.0710 Page 15 7AN9VERIZONHRG(1).txt 17 0 1 buildings so that we can offer services there. 2 Other negotiations with property 3 owners are underway and it is our commitment to 4 the board that throughout 2006, we will get to 5 all property owners and try to gain access and 6 negotiate access to those buildings. clearly, 7 we want to get into those buildings to provide 8 services. 9 similar local businesses that are 10 aerial today, we're passing those businesses so 11 we're buying out of those businesses and we can 12 offer those services to most of them. Marie's 13 throwing things at me. 14 MS. LASOTA: It was an accident. 15 CHAIRPERSON ANTHONY:. Did he say 16 something wrong? 17 MS. LASOTA: No. 18 MR. BOWMAN: it must have been a hint. 19 So we have services. The downtown 20 area, for example, we have run our fiber to the 21 prem, our fiber through the downtown area 22 through the existing conduit system. so 23 currently fiber to the prem is in downtown. 24 we do need to, and Peter has pointed WIDOMSKI COURT REPORTING (781) 246.0710 18 Page 16 3AN9VERIZONHRG(1).tXt 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 out on several occasions in different discussions, that you have a project of redoing the downtown area starting in the spring. So our conduit, our fiber is already in that conduit. It has not been carried necessarily through all the laterals into the buildings. we would view that a lot of that kind of as an MDU, multiple, I know it's mixed use, business. we still need to get access into some of the buildings by talking to landlords. What I assured Peter is in that process of when you're doing your project, we will make sure we have all our lateral connections from our main line conduit clear. If those need to be replaced we'll do that as part of the process to ensure that we don't have to come back and dig up your streets. CHAIRPERSON ANTHONY: That's what I was going to ask you. when you go into a building, do you have to go under the sidewalk? You must go through the street and under the sidewalk or do you rip up the sidewalk? MR. BOWMAN: Generally, hopefully, what we did is we ran the fiber through the WIDOMSKI COURT REPORTING (781) 246.0710 0 19 1 existing conduit system and then we would go Page 17 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt through existing laterals to get to the buildings like you said, a piece of conduit going under a sidewalk but what we will do during your project is make sure that all of our laterals are in fact clear. If they need to be replaced, we'll replace them while you're doing your project so that obviously we don't need to come back and dig up your streets. CHAIRPERSON ANTHONY: No, we wouldn't let you come back. MR. BOWMAN: I don't think so. So we view in kind of in summary that's unprecedented access to our services on day one. so, if we're successful enough, we're successful. with you to negotiate a license, that we would be able to really, like I said, unprecedent deployment of our video services on day one and really our business is prepared to offer video services very soon after an agreement is reached here. selectmen Tafoya, I know a couple of your phone numbers at your residence didn't show that you were ready for fiber. The primer went back. we verified that. That was a database WIDOMSKI COURT REPORTING (781) 246.0710 20 1 issue. But you said the lines are out, the 2 fiber to the prem is there. we are working 3 through to make sure that everything is in the Page 18 0 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt database properly., You know that there can be some of those issues. There shouldn't be a lot of them but there can be. So, kind of in summary on that main two questions you had, that's really where we stand. so, I think, we would be open to questions or comments. CHAIRPERSON ANTHONY: Does anybody wish to follow through? Can I ask, Ben, were you going to say something? You didn't look like you were going to but I wasn't sure. I want to know about Sanborn village, the very northern those are underground utilities, I just wonder what's the status there? Did you look at that? MR. BOWMAN: Specifically, is it a residential development? CHAIRPERSON ANTHONY: It's residential. MR. BOWMAN: What we have done is we WIDOMSKI COURT REPORTING (781) 246.0710 21 1 2 3 4 5 looked at all the residential developments and looked at all the buried. we have done a lot of the engineering work on that. Now it's really a matter of our getting a schedule and begin the process of doing the work. so we don't see any Page 19 0 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ]AN9VERIZONHRG(1).tXt issues in any of the buried developments but clearly there is work, possibly digging, depending on what we do find. CHAIRPERSON ANTHONY: That was the last section of town and it's pretty dense. Not dense as far as they're not close together but there's a lot of houses up there. That's my concern. MR. HECHENBLEIKNER: My guess is their penetration would be fairly high. MR. BOWMAN: Clearly what we could do is work with the manager and others and try to set up a schedule that made sense for both us and the town to try to work through those buried developments over the next few years. CHAIRPERSON ANTHONY: Few years. MR. BOWMAN: Just based on the franchise, the license. CHAIRPERSON ANTHONY: Ben. WIDOMSKI COURT REPORTING (781) 246.0710 22 1 2 3 4 5 6 7 MR. TAFOYA: What you're saying to us today, Mr. Bowman, is that any resident.of the town outside of those areas that you just identified for us, the downtown area, and the Sanborn village area, should be able to call verizon tomorrow during normal business hours and discuss with them the start-up of the FIOS Page 20 JAN9VERIZONHRG(1).txt 8 data service? 9 MR. BOWMAN: Right. I think I would 10 be a little broader than that to say anything 11 that's a buried development, anything that's a 12 multiple dwelling unit. outside of the ones 13 that I've highlighted. some of the businesses, 14 when you go by a strip mall, we've passed that 15 mall, there's five, six, seven small businesses 16 in there. it might be a case like in your 17 situation on a residential, the database might 18 not reflect that there's service there yet 19 because it is hard sometimes when you go by a 20 multidwelling unit or multiple business dwelling 21 unit to identify each individual business that's 22 in there but what I really wanted to stress to 23 the board tonight was the fact that we are 96 24 percent aerial going past all of these, in the 0 WIDOMSKI COURT REPORTING (781) 246.0710 23 1 downtown going underground so throughout 2006, 2 it's clearly our goal to be getting all of those 3 businesses into the database, working with 4 property owners to negotiate access, if 5 necessary, and just to advance our penetration 6 of our network clearly. Does that answer the 7 question? 8 MR. TAFOYA: okay. 9 CHAIRPERSON ANTHONY: Anybody else Page 21 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ]AN9VERIZONHRG(1).txt have any questions? MR. SOLOMON: I would like to go ahead. MR. SCHUBERT: I guess maybe is there an update on where you stand on the definition of cable system? Is that what you're going to talk about? MR. SOLOMON: I was going to just get back to the issue of businesses and residential areas. There's really, there's sort of two separate paths you have to think about. one is for us practically what is verizon telling you. in other words, what are they saying they will be doing and what are they saying explicitly or implicitly, not to be misleading, but implicitly WIDOMSKI COURT REPORTING (781) 246.0710 24 1 2 3 4 5 6 7 8 9 10 11 won't be done. secondly, a question Pete has asked which is well, if they don't do something, can this license say to the company, well, you have to do it. Now, with respect to and then also with respect to what they plan on doing, how does that get codified in a document? Is it enough to say you have heard from verizon today, you understand what's going to be done and what's not going to be done or do you need further codification by either having explicit Page 22 JAN9VERIZONHRG(1).tXt 12 language in the franchise or by having some sort 13 of attachment? 14 Let's take one issue at a time. Let's 15 take the issue of businesses. The proposal of 16 verizon states as you stated at the last meeting 17 by secretary Tafoya that they may provide 18 service to businesses. May make cable service 19 available to business. so that if at one point 20 you have businesses who say, hey, I don't have 21 cable service, can the board do something about 22 that other than asking verizon is not an 23 enforceable provision in the document. with 24 respect to the provisions of cable service, more 0 WIDOMSKI COURT REPORTING (781) 246.0710 25 1 often than not it's not particularly in 2 eastern Massachusetts it's not that there are 3 large areas that don't have cable service. It's 4 that you'll have a few places where towns for 5 years will be trying to get three homes or four 6 businesses service. Albeit it's in a 7 competitive world, there's maybe a likelihood 8 they can get it from another provider but you 9 also have to keep in mind when your other 10 provider comes up, they might have said we want 11 the same ability to figure out if we're going to 12 be rebuilding where we go and where we don't go. 13 so, taking it one issue at a time, the question Page 23 JAN9VERIZONHRG(1).txt 14 becomes is there something on the record, and if 15 there is, does it have to be codified to give 16 this board a comfort level that the concern 17 expressed by the, some selectmen that businesses 18 be provided cable service will become a reality. 19 so let me ask that at this point, because if you 20 ask, as your attorney, I can't say the license 21 requires it. It says they may make it available 22 to commercial establishments. So that means 23 that based on what we're hearing today, that 24 there are some places, for instance, if there is 0 WIDOMSKI COURT REPORTING (781) 246.0710 26 1 not residential density of ten or 15 homes per 2 mile and a business happens to be there, well, 3 they won't get that service or since it says may 4 there may be other reasons. Technical reasons 5 or business reasons why the company doesn't 6 provide that. 7 Now I'm not suggesting that what the 8 company is stating here is satisfactory or not 9 satisfactory. I'm merely raising to you have 10 you what have you heard and is it 11 satisfactory given the fact that there's not a 12 requirement that all businesses must be provided 13 cable service. 14 MR. TRANE: Madam chairperson, if I 15 could just respond to Bill's comments. Page 24 0 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).txt First off, it's Verizon intention to serve everybody, that's why they are getting into the competitive marketplace to do. The more customers the better. And I would also point out that level playing field language which exists in your current agreement works both ways. There is nothing in your incumbent agreement that requires the incumbent to provide services to WIDOMSKI COURT REPORTING (781) 246.0710 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 the business. we intend to do that. we have already stated we have built out 96 percent of the plant in Reading but it's an issue of fairness to us as well. MR. SOLOMON: with respect to the level playing field, I concur that your current license, unlike most licenses that I've viewed, does not provide for that. That doesn't mean, of course, in three years your position with comcast might not be you need to provide cable service to all businesses. Albeit even under your current license, if you have a residential density requirement and you have a business that's not in an area that has residences, you would not be covered. so, again, I'm not suggesting what the company is proposing is adequate or inadequate for you. That's really Page 25 0 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt your decision. what I want to bring to your attention is do you clearly understand what's being stated and I think what is being stated is that the company can choose for business reasons or technical reasons not to serve some of your businesses and the proposal would not allow you WIDOMSKI COURT REPORTING (781) 246.0710 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 to require them to serve those businesses. The question is in reality, is that a problem or have they given you a reasonable or satisfactory level of comfort that you know what will be done or not be done? when it comes again to the difficult area, the difficult building of a difficult business, it's not a question that the company is in the business of providing.a service, they are, but what in reality it comes down to is if it's going to cost a certain number of dollars to provide the service, the company makes a business decision, hey, we just can't do it and the towns might have a different perspective. Again, I leave it to you. I'm really not trying to suggest it's inadequate, I'm leaving that to you. understand if you don't understand at the moment, ask further questions and also the other question becomes is there a Page 26 7AN9VERIZONHRG(1).tXt 20 way to codify what's been expressed at this 21 hearing as an attachment to the franchise so we 22 have some sort of representation in writing as 23 part of the license as to what has been done and 24 what that means. 0 WIDOMSKI COURT REPORTING (781) 246.0710 29 1 CHAIRPERSON ANTHONY: Would that have 2 any teeth in court? 3 MR. SOLOMON: Well, it would, it would 4 depend what it says. You know your town 5 geography better than I do. I think what's been 6 stated is clearer to you than it is to me 7 because I'm less familiar with your geography. 8 MR. TAFOYA: Peter, do we have any 9 areas in town that Comcast hasn't been serving 10 that we have had a problem with them to try and 11 get service for? 12 MR. HECHENBLEIKNER: There are two 13 properties I know of that are problematic. one 14 is the parsonage at old South right across the 15 street, and it's because it's an underground 16 service and you're not digging up the streets. 17 And the other is, interestingly, the house 18 that's next to the central fire station. Again, 19 the same issue, that their service doesn't 20 really come off the front, it comes in off the 21 back. Comcast has expressed a willingness to Page 27 7AN9VERIZONHRG(1).tXt 22 serve either one but at a significant cost. 23 so beyond that I'm not aware of any. 24 I'm sure during the last 19 years, I probably WIDOMSKI COURT REPORTING (781) 246.0710 0 30 1 would have heard something. 2 MR. TAFOYA: I would feel much more 3 comfortable with the agreement if the if sort 4 of the tentative schedule that was laid out by 5 Mr. Bowman was incorporated in it with a little 6 bit more specificity because the agreement as it 7 was presented to us originally, again said three 8 years for residential customers and, you know, 9 we have come to understand now that there's 10 differences among residential customers 11 depending on whether your services are provided 12 through aerial or underground and, you know, I 13 think we could afford the extra paragraph or two 14 to delineate that difference and to lay out a 15 specific schedule that reflected the commitment 16 that Comcast has made verbally which is that for 17 aerial service, we're not talking about multiple 18 dwelling units where they have to get special 19 permission for service, that there be one 20 schedule and there might be another one for the 21 underground serviced areas and another one for 22 the multiple dwelling units, depending on how 23 those discussions went with the appropriate Page 28 JAN9VERIZONHRG(1).tXt 0 24 people. WIDOMSKI COURT REPORTING (781) 246.0710 31 1 MR. TRANE: If I could, Madam 2 chairperson, keep in mind what Verizon is 3 building here is an FTTP network under Title 2. 4 It's not a cable system. We are asking you to 5 provide a license to provide cable service so 6 the construction issues is separate and 7 distinct, that's one. 8 Two, if verizon was a cable company in 9 their traditional sense, they would be coming to 10 you asking for a license and then taking up to 11 six years to provide service. What we're saying 12 is we built out 96 percent of the community on 13 day one and we will come back to the board over 14 a three-year period to get permits as required 15 through the process or the DPW to get permits to 16 build out that schedule. And that three years 17 sounds like a long time but half of what we 18 could do under the law, half as sill noted there 19 were compromises, half of what we started with 20 in the beginning. And, secondly, we're in 21 Massachusetts. There are more moratoriums to 22 build in tough conditions between generally 23 November and March. so, there are really only 24 six or seven months a year where verizon is Page 29 0 JAN9VERIZONHRG(1).txt WIDOMSKI COURT REPORTING (781) 246.0710 32 0 1 looking to do the underground work. so, it does 2 take time; there are permits required and we do 3 have a firm commitment in the document to serve 4 everybody in that three-year period. 5 MR. TAFOYA: The problem is, sir, it's 6 going to be a long time before this board gets 7 another opportunity to look out for the 8 interests of its residents in this kind of 9 process. we'll be going through the same sort 10 of process with Comcast sooner rather than 11 later. And, you know, one of the reasons why 12 town government has gotten involved in these 13 issues, not just in Massachusetts but in other 14 parts of the country, is to make sure that 15 service providers were coming into the towns 16 weren't, you know, cherry picking areas, if you 17 will, and to make sure that you know everyone 18 had access to the services. 19 MR. TRANE: I want to make it clear, 20 we have built out the vast majority of the 21 community already. we'll make a commitment that 22 half of what the state law requires to build 23 out, the remaining four percent, that's our 24 commitment to serve everybody. It's not in our WIDOMSKI COURT REPORTING (781) 246.0710 Page 30 JAN9VERIZONHRG(1).txt 33 a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 business interest to do anything other than that. what we're doing is recognizing the reality that underground requires permits, consultation with the manager, the DPW, and in some cases, your board to do that. That's a timely process, it takes time. And to do that we think three years was fair. we originally asked for much more but we have worked with Peter and Bill to come up with what we think is a fair schedule of construction. That's no different if you require it when you get into renewal with Comcast for them to upgrade their facility here in Reading. I'm sure they will - ask for a time period to do that. CHAIRPERSON ANTHONY: You had asked that in the agreement that it be separated out between the underground and the I think that's not a bad idea. MR. TAFOYA: It seems reasonable that certain areas that require special effort would be on a different time frame than that which you have told us is being served. You know, the problems, sir, really is WIDOMSKI COURT REPORTING (781) 246.0710 34 Page 31 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).txt that we have no way of verifying what you say. I'm a little tech savvy and I can look up at the equipment that's running through town and I can look at what's there today and what was there a year ago. But, again, I don't know what works, what doesn't work. MR. TRANE: Keep in mind, as I noted earlier, Verizon is building a network that provides primarily voice and data and to do that, they have the existing authority to do that in the town and obviously subject to construction requirements in the town to do that and to build out at its own time frame to do that. That's what they have undertaken to do. what we're simply asking for is the ability to provide cable service in addition to that construction. what we're doing is really forcing our own hand to meet a three-year requirement and to further that point, there are 18 competitive licenses that have been negotiated in the commonwealth of Massachusetts with another provider. All of those without exception provide three to four years for that company to build out their system. so it's WIDOMSKI COURT REPORTING (781) 246.0710 35 1 consistent with past practice here in 2 Massachusetts and elsewhere. In that case, it's Page 32 0 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3AN9VERIZONHRG(1).tXt four years for the entire community. we're talking about three years to build out difficult to build areas within the town. MR. HECHENBLEIKNER: I think the board's point though probably is that they didn't start out with 96 percent of the town covered so why does it take up to three years for the other four percent? MR. TAFOYA: Or anything in the case of somebody like RCN? MR. SOLOMON: I thought your other point was MR. TRANE: My point is that RCN got three or four years to build in those communities. The advantage, it's really a good story, verizon shows up in Reading with 96 percent of the facilities built being that they can provide service. There's an immediate benefit to you approving this license. It is that those covered by the aerial plan can get service on day one. They don't have to wait for the construction to happen. WIDOMSKI COURT REPORTING (781) 246.0710 36 1 2 3 4 MR. SOLOMON: Ben, I thought your point also was a little different that if accepting the fact for discussion sake that it takes verizon three years, potentially they need Page 33 0 JAN9VERIZONHRG(1).tXt 5 three years to do some underground areas. I 6 thought your point also was while there are 7 areas that are not underground that will be done 8 under verizon's articulation in less than three 9 years, shouldn't the license reference those 10 areas in a separate category than the areas that 11 can't be? In other words, let's codify what 12 verizon is saying and distinguish those that 13 will be done in less than three years aerial 14 from the underground. I think that was also, 15 that's a lesser point but maybe Verizon can 16 address that issue. 17 MR. TRANE: The only thing I would 18 add, Bill, is to the selectmen's point, we did 19 have discussions with Bill and Peter about their 20 fear and I think yours that we would be cherry 21 picking I think is the word you used. That's 22 obviously not our intention but we put that in 23 the document and we note in the document that 24 the licensee shall not discriminate between or WIDOMSKI COURT REPORTING (781) 246.0710 37 1 among any individuals in the availability of 2 cable service. so we have made that commitment 3 to the town in writing as part of the process of 4 negotiations with your representatives. 5 MR. TAFOYA: I think that refers to 6 people signing up. Page 34 0 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt MR. TRANS: No. It says the licensee shall make cable service available to all residential dwelling units and make cable service available to business within the town in conformance with section 3.1 and the licensee shall not discriminate between or among any individuals in the availability of cable service. So we have made that very clear to the town in Reading. MR. TAFOYA: But it obviously is a moot point unless fiber is driven to the premise of the people that we're discussing. MR. TRANS: Remember, we're creating a competitive environment where it's in our interest to get those properties that require undergrounding.. My guess is even the limited amount of properties that Comcast hasn't served in the past, they may be more interested in WIDOMSKI COURT REPORTING (781) 246.0710 38 1 serving them because if they don't, we will. 2 MR. SOLOMON: Let me make a language 3 suggestion. Again, to see if this reflects what 4 verizon is saying and seeing if the board would 5 like that language. The license could be as 6 simple as saying that if the board would agree 7 that three years for underground, and for those 8 areas, those dwelling units served by aerial Page 35 JAN9VERIZONHRG(1).txt 9 plant have a different number of years. Have a 10 one year or whatever it might be. Then at least 11 it seems to quantify what's being articulated, 12 if that's the issue. There's a larger issue 13 about the three years so you have a few issues. 14 Are you happy with the three years for certain 15 underground and, secondly, if that's limited to 16 certain underground, do you want the license to 17 reflect the fact that there's a shorter period 18 of time for those homes served by aerial plants? 19 CHAIRPERSON ANTHONY: well, I assume 20 what could happen also is that a business 21 decision could be made saying that it's not 22 economically worthwhile to serve that area. 23 MR. TRANE: That could happen in some 24 instances as it has with the incumbent, that 0 WIDOMSKI COURT REPORTING (781) 246.0710 39 I 1 they look to recoup the cost because of the 2 extraordinary costs to get to that problem. 3 what has happened as Mr. Manager noted in very 4 few instances. Again, we want to get to every 5 business and every resident because that's what 6 we're doing: Creating a competitive 7 environment. 8 CHAIRPERSON ANTHONY: Okay. Any other 9 questions? James Bonazoli. 10 MR. BONAZOLI: Just to that point, Page 36 7AN9VERIZONHRG(1).tXt 11 you're saying even within three years anybody 12 and everybody will have service? 13 MR. TRANS: Correct. 14 MR. BONAZOLI: So I guess our issue is 15 with the three years but difficult location or 16 not, you're saying the entire town will be 17 covered in service within three years? 18 MR. TRANE: Correct. There are 19 provisions in the license that require us to 20 build out within three years and then within 21 that as we discussed at our last hearing, there 22 are some caveats within that for density 23 requirements and other things that are 24 particular for cable license bonds. WIDOMSKI COURT REPORTING (781) 246.0710 0 40 1 MR. BONAZOLI: That may go above and 2 beyond three years. 3 MR. TRANE: Correct. 4 MR. SOLOMON: That could go, 5 basically, allow the company not to build. The 6 address those the provision verizon seeks as 7 exceptions, frankly, go beyond what a 8 traditional well done cable license provides. 9 Let me just give those two provisions. 10 one is that in areas where the well, the 11 developments or buildings that the licensee 12 cannot access under reasonable terms and Page 37 0 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt conditions after good faith negotiations as reasonably determined by the licensee. so that verizon seeks here, and again this is a compromise in this process, that the town through its agents suggested could be made but this compromise allows verizon in its reasonable determination, reasonable subjective determination to say, hey, it's too expensive to make a deal with a multifamily and we don't have to do that. Now, under most well done cable licenses, that exception doesn't apply. It's WIDOMSKI COURT REPORTING (781) 246.0710 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 not an unreasonable exception but in your license, in your existing license, there's really no out for the cable company to say, hey, it's too expensive to do. They have to do it. Although they can try to. make some arguments outside of the license, the license doesn't give an out to the cable company. secondly, it says in areas, developments or buildings where the licensee is unable to provide cable service for technical reasons or which require nonstandard facilities which are not available on a commercially reasonable basis. so here verizon seeks to say well, if there are technical reasons or if it's Page 38 0 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).txt not standard, it's not commercially practicable, reasonable, then they don't have to provide that that service to your residential dwelling units. That is not as typical of a well drafted cable license which says you have to provide service. You might have a density requirement like you have now, ten or 15 homes per mile, but it doesn't let the cable company in the license say, decide, well, it's too technically difficult. They have to do it. WIDOMSKI COURT REPORTING (781) 246.0710 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Now there may be cases in Reading where they haven't done it and you haven't enforced it yet but it doesn't in the license provide an out based on technology or based on financial cost. verizon sought in this license to have those exceptions. The first exception as I mentioned with respect to cost is as they reasonably determine. Those are exceptions which if they if the town agreed to and verizon were to use would mean that there are certain residential dwellings that might not get serviced. in the negotiation back and forth, your representatives determined that based on the totality of circumstances, the reality that these folks wanted to do business, those were Page 39 0 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt exceptions that the town could would be recommended that the town could live with i.f other aspects of build out were met. At the end of the day, we need not discuss it here if you don't like, that's a decision you're going to make. Those exceptions are broader than you typically see in a cable franchise. in fact, broader than in your cable WIDOMSKI COURT REPORTING (781) 246.0710 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 franchise because those outs don't exist under your existing franchise. MR. TRANS: The only thing I would add, Bill, one, you used the well-drafted cable license and as the manager knows, there are properties that aren't being serviced now by the incumbent that exist. we are clarifying the specific examples that if we couldn't provide service, what they would be. secondly, everything that the cable company committed to in its current license was done in the monopoly setting where the resident had no choice. They either pay the money for the difficult situation or not get cable service. we're providing competition we think that will change the marketplace. It's important to look at the context and the current license. Page 40 0 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt CHAIRPERSON ANTHONY: okay. Any other questions? MR. SCHUBERT: I have a question on the same subject. Peter, with the properties just north of the common, is the street scape project, is that going to provide opportunities? WIDOMSKI COURT REPORTING (781) 246.0710 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 That's probably not going to come close enough to connect to do some of the underground work. MR. HECHENBLEIKNER: No. CHAIRPERSON ANTHONY: So those houses could go to satellite, right? MR. HECHENBLEIKNER: Yes. The issue with the property next to the fire station is that it exceeds the distance requirements which I think is 150 feet from the existing license. You come up Salem Street up the alleyway in back to come to the house exceeds that. It's not that they can't get service, they would have to pay installation cost. I believe it's the same issue with the parsonage, although there's conduit but it's in the street. You can't gut the street to do it. CHAIRPERSON ANTHONY: Is there any other questions that need to be asked on the outstanding issues that we are going to discuss tonight? Page 41 JAN9VERIZONHRG(1).txt 21 MR. SCHUBERT: Do we want to talk 22 about separating the two different timeframes? 23 The three years, maybe, where some of the 24 underground things would be hard to get to 0 WIDOMSKI COURT REPORTING (781) 246.0710 45 1 versus any of the properties receiving aerial - 2 service,that receive aerial service? I think 3 it's worth talking about. 4 MR. HECHENBLEIKNER: Can I play back 5 to particularly Peter Bowman, I think from 6 verizon, so I understand what the commitment is? 7 That by the end of 2006, you will have 8 approached all MDU, multidwelling unit locations 9 in terms of getting installation. That doesn't 10 mean you necessarily accomplish it but you will 11 have approached them? 12 MR. BOWMAN: Correct. 13 MR. HECHENBLEIKNER: What is a similar 14 kind of situation with regard to the underground 15 in terms of timing or schedule? 16 MR. TRANE: I can take that. We have 17 negotiated, we have six years under the law. we 18 have negotiated with you for three years and we 19 will, as we noted at the last hearing, work with 20 you, Peter, to come back on a reasonable 21 schedule. If we can do it quicker, we will but 22 we need to get other engineering folks in to Page 42 JAN9VERIZONHRG(1).tXt 23 look at the specific issues at each location. 24 So our commitment is to try to do it as quickly 0 WIDOMSKI COURT REPORTING (781) 246.0710 46 1 as possible but the document does say we have up 2 to three years to do it. I think we could work 3 with you off-line to develop a schedule that I 4 think would be appropriate but I would point out 5 that again, that Verizon's building this network 6 under an existing authority under Title 2 of the 7 building and it's beyond the Board's scope to 8 regulate the construction of the FTTP network. 9 However, that being said, we do need underground 10 permits and typical permits that are required in 11 the commonwealth and I think we can work with 12 Peter to come up with the schedule that the 13 board would find satisfying. 14 CHAIRPERSON ANTHONY: How long is it 15 going to take to do the underground? As far as 16 what you say a twelve-month construction period 17 or what. 18 MR. TRANS: Each area that has some 19 undergrounding issues is different. Again, with 20 the winter months here in Massachusetts, it 21 becomes more tricky issue but, again, we have 22 three years that we've asked for in the license 23 to build out the entire community as it relates 24 to cable service but even absent that cable Page 43 JAN9VERIZONHRG(1).tXt 0 WIDOMSKI COURT REPORTING (781) 246.0710 1 license, we would be looking to do these 2 undergrounding issues for the provisions of data 3 and voice services. 4 MR. HECHENBLEIKNER: The other thing, 5 just to make it clear with the board, not all 6 the underground areas are in the same location. 7 For example, off Rustic Lane, you have a 8 relatively new development that's got maybe a 9 dozen or dozen and-a-half houses. You have that 10 around the community. Autumn Lane off Wakefield 11 Street, just go all around where new 12 developments have been. The lower Sanborn area 13 is the largest single area. 14 MR. TRANS: I think what we committed 15 to is we would work with the manager through the 16 last meeting to get our engineering folks 17 together with the town's DPW folks and kind of 18 map out the process of where these areas are, 19 and how long it's actually going to take us. I 20 think that's what we're committed to do. 21 I think in the next couple of weeks, 22 we'll do that. we haven't had a chance with the 23 holidays to really get down to that level but we 24 will with Peter in the next couple of weeks. 47 Page 44 ]AN9VERIZONHRG(1).tXt WIDOMSKI COURT REPORTING (781) 246.0710 0 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 CHAIRPERSON ANTHONY: okay. Can I just ask you to review the customer service provisions of the, of what I know you're in negotiations so how do I put this? I want to know how customer service is going to work. MR. HECHENBLEIKNER: For the customer service standards. MR. TRANS: There are specific customer service standards we have negotiated with Peter and Bill that are a part of our document. I don't know if you want to paraphrase how you see them. MR. SOLOMON: I don't think we have come to an agreement on that. In part, recently we decided on the town side until we get these other issues resolved, at least on the terms of spending your taxpayers dollars, we have tried not to. I think maybe the best way to address it is to have Paul discuss the major customer service issues, how verizon will serve your subscribers and then I think it would be helpful if Paul could describe in what ways that service differs from existing federal regulations. I think it would be helpful for you to understand WIDOMSKI COURT REPORTING (781) 246.0710 0 Page 45 49 JAN9VERIZONHRG(1).tXt 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 that. To be fair to verizon that their view to some extent is in the competitive world. People can make decisions on who to use as a provider based upon customer service and that there's less need for regulation, that's to some extent true but obviously that's the difference between someone on the one side of the spectrum and someone on the other side in terms of how they view government regulations. I think it would be helpful for Paul to explain how they're serving the subscribers, how do you get equipment and who do you bring it to and who do you get a call. secondly, discuss a little bit what the differences are between that and federal regulation so that you can understand what it is that verizon is doing differently than existing federal regulations. That federal regulation only applies if the town takes certain steps, in probably another day; but I think that would give you a sense of what they do and how it differs from theory. CHAIRPERSON ANTHONY: I also think we are going to hear about is if repair time, like I told you, they told me my phone would be out WIDOMSKI COURT REPORTING (781) 246.0710 50 Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a 1 2 7AN9VERIZONHRG(1).txt three days, I might see somebody from Verizon for my telephone. I'm really interested in, I put a call in because my cable, my cable isn't working, what is your expected response? MR. TRANS: As I noted in Exhibit B of the agreement, there's customer service standards that we have negotiated with Peter and Bill. And all of those meet the requirements of the mass. regulations regarding customer service, so we're going to meet those. In other cases, we exceed them. There are very lengthy. If you would like to, I could try to summarize. CHAIRPERSON ANTHONY: Tell me, my cable is out, what are you saying to Reading residents when will you get out to try to fix the cable in Reading? I assume Verizon telephone is meeting mass. standards, too, but it doesn't meet my standard as a telephone customer. MR. TRANS: There are no federal regulations in responding to a subscriber complaint. They are driven by the Massachusetts regs. That's what we have put forth in here, that we have 24-hour, seven-day-a-week service WIDOMSKI COURT REPORTING (781) 246.0710 51 to handle those situations. our commitment is to provide the best possible customer service to Page 47 0 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3AN9VERIZONHRG(1).tXt every resident. Again, keep in mind it's a competitive service. so that people have the ability for the first time in Reading to hang up on Comcast or on verizon and go to one other service if they don't provide the proper level of service. That's what these regulations or these exhibits of customer service standards we put into the license indicate. we understand it's a competitive environment. We want to win in the marketplace. You don't win through this license; you win in the marketplace by providing the service that people want. That's what we're looking to do here. Get the opportunity first to approve the license and secondly, win-by the customer service and.the type of service in general that we will provide to the community. CHAIRPERSON ANTHONY: So your answer to me, to cut to the chase is you have in 24 hours someone should be out to take a look at why the cable is not working? WIDOMSKI COURT REPORTING (781) 246.0710 52 1 2 3 4 MR. TRANS: In most cases, we have 24-seven, 365 days a week customer service availability in Reading and every other community in Massachusetts when we get there. Page 48 7AN9VERIZONHRG(1).tXt 5 CHAIRPERSON ANTHONY: I think this is 6 very indicative of why competition is so 7 important and why Verizon telephone needs more 8 competition. I'm very serious. There aren't 9 places to go anymore. 10 MR. TRANE: Again, competition works. 11 if you remember the first thing I started out 12 with at the last hearing was that rates 13 stabilized, the customer service improved. 14 That's the conclusion of what happens in the 15 competitive marketplace and we, I think, Verizon 16 as a whole has probably improved on the 17 telephony and data side based on the fact they 18 are now in the competitive marketplace. 19 Hopefully, we'll do the same for comcast and 20 they'll make us better. 21 Eric is pointing out that some of the 22 provisions that we have in the customer 23 standards exceeds the federal requirements that 24 the incumbent is under now. WIDOMSKI COURT REPORTING (781) 246.0710 0 53 1 MR. SOLOMON: With respect to service, 2 maybe Paul can address when someone seeks to 3 have service, how long will that take and in 4 different scenarios? That's one of the things 5 that was somewhat different than traditional 6 because of their technology, it might be helpful Page 49 0 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).txt for us to understand that. MR. TRANE: Again, we're trying to provide customer service in a competitive environment that meets or exceeds what's out there. That's our intention. Again, there are a number of provisions there. There's nine pages of provisions of customer service that we would be more than glad to summarize to the board in a one-page document prior to the next hearing. There are a litany of things we are committed to do that you wouldn't find in the current agreement, that we're committed to do to show that we're here as a second entrant, realizing that we have to do better than the incumbent in order to gain customers. That is what our intention is by providing this as part of the document. we continue to discuss those WIDOMSKI COURT REPORTING (781) 246.0710 54 1 2 3 4 5 6 7 8 issues with gill and Peter. CHAIRPERSON ANTHONY: We didn't get into the difference between federal and I know you had mentioned that, gill. MR. SOLOMON: Again, the only reason is I believe it's important, the issues come up, that we have full disclosure. My understanding is that sometimes'I don't focus on customer Page 50 7AN9VERIZONHRG(1).txt 9 service. The federal regulations require if you 10 request service, the company has seven days to 11 provide service. I believe Verizon because of 12 its technology has a different approach to that. 13 I thought that would be a good example to ask 14 Verizon how their approach is different from 15 that seven-day service provisions so we can 16 understand that, as an example. Because there 17 were some differences from what traditional 18 standards but as stated by Verizon, there are 19 other areas where they seek to exceed 20 traditional standards but that was one area I 21 know that stood out. Maybe they can address 22 under federal regulation the extent to which 23 it's applicable which I won't get into here, 24 that the company has seven days to provide 0 WIDOMSKI COURT REPORTING (781) 246.0710 55 1 service if someone requested, what will Verizon 2 be doing on that? 3 CHAIRPERSON ANTHONY: Are you talking 4 about new service or are you talking repair? 5 MR-. SOLOMON: New service. 6 MR. TRANS: We're committed to provide 7 seven.days, within seven days of installation of 8 the ONT box at the premise to provide service. 9 MR. SOLOMON: Again, it doesn't have 10 to be high on the food chain. Just that the Page 51 0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt issue becomes when that box is there, part of the question is when the box is there or not. I think what will be helpful to the board to make it simple is if Verizon would prepare as discussed on the one-page summary how it's proposed customer service standards differ from the federal standards on the code of federal regulations. I think that would make it they spent a lot time. in fact, Attorney Antonucci, one of his subspecialties is customer service. since he was put in charge of that, it would be helpful to have the side-by-side comparison of where the proposed regulations are different WIDOMSKI COURT REPORTING (781) 246.0710 56 1 2 3 4 5 6 7 8 9 10 11 12 from the existing federal regulations. Again, those federal regulations don't apply here in Reading at the moment. That's not the issue but so you know that. My only desire as your counsel is that you know these things before you vote so then later on if a question comes up, you don't wonder how come we didn't know there was a difference here. we didn't know what the issue was. Again, compromises will probably be made in these cases that meet the town's need. I think it's important that you know the Page 52 JAN9VERIZONHRG(1).txt 13 compromises that you are making since you have 14 asked these questions. 15 CHAIRPERSON ANTHONY: What you're 16 basically saying is you wouldn't really be 17 worried about changes from the federal, if it 18 were in the town's favor. 19 MR. SOLOMON: No, in both ways. As 20 long as you know what those are, then I think 21 you can make an informed decision that those 22 differences are acceptable. And I think in many 23 cases, I think you will conclude that but I just 24 want to make sure you know what those 0 WIDOMSKI COURT REPORTING (781) 246.0710 57 1 differences are so you can make an informed 2 decision. 3 CHAIRPERSON ANTHONY: Okay. So do you 4 know what he wants? 5 MR. TRANS: Yes, I do. 6 CHAIRPERSON ANTHONY: Good. It seems 7 like you have already done it. 8 MR. TRANE: That's fine, we have 9 discussed it at length. 10 CHAIRPERSON ANTHONY: Pardon. 11 MR. TRANE: We have di scussed with 12 Peter and Bill at length. 13 CHAIRPERSON ANTHONY: Rick, you had 14 something? Page 53 0 15 16 17 18 19 20 21 22 23 24 3AN9VERIZONHRG(1).tXt MR. SCHUBERT: The other one of the three issues. Still I understand still being worked on, the definition of cable systems. Has there been any change or any progress on that since the last time we met? Have you had time to further that discussion? MR. HECHENBLEIKNER: We have had further discussion. I think the from our perspective, the ball is sort of in Verizon's corporate court, if you will. There's some WIDOMSKI COURT REPORTING (781) 246.0710 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 broad, corporate issues that they have to deal with to address that issue. Again, the definition issue is the definition of cable system. And the town's position is we just want reference to the federal law period, end of story. Verizon has proposed some modification to that, much less modification than they initially proposed but we have negotiated away from that and it is significant for several reasons. Cable system is referenced throughout the document and the one that keeps popping in my mind is the gross revenue is based on cable service over the cable system. so if the cable system definition is not tight then the whole definition of gross revenue can go away and Page 54 0 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt that's important to peg access because that's how we determine how much is the access. CHAIRPERSON ANTHONY: So do you call it something other than a cable system? MR. TRANE: No. In fact, it's important to point out that your current franchise doesn't reference the federal definition at all. so as Peter has mentioned, WIDOMSKI COURT REPORTING (781) 246.0710 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 we have asked for the federal definition that also recognizes the distinction that verizon is a Title 2 provider and has built the facilities under Title 2 and separates those Title 2 issues and the information services out from the definition of cable system. I think if Pete is concerned is one surrounding gross revenue, I think there are ways that we can work with him over the next few weeks to potentially address this outside of the cable definition issue. . MR. HECHENBLEIKNER: Again, there are other places where it's referenced. I'm just using the gross revenue. MR. SOLOMON: To give a very brief review of the issue. Based on long discussions with Verizon where the town, and I know this is true for other communities, too, that are represented throughout the country, have tried Page 55 JAN9VERIZONHRG(1).tXt 19 to negotiate language in the franchise that as I 20 said last time, makes it clear that we will 21 accept for purposes of the agreement the concept 22 that they're in the right of way because they're 23 a telephone company under Title 2 of the 24 communication act, which as I mentioned the last 0 WIDOMSKI COURT REPORTING (781) 246.0710 60 1 time, was rejected in New York where the 2 commission said, You've got a cable license, 3 you're a cable company, you're under the cable 4 laws, the other stuff doesn't matter. The town 5 for purposes of negotiation to date continues to 6 accept even post the New York decision, the view 7 of the world Verizon suggests that their 8 infrastructure is there because of Title 2 and 9 the telephone system and you're not to touch it 10 because of through your cable license but the 11 term cable system is important because in trying 12 to word this in many different ways to give 13 comfort to Verizon, that we're not trying by 14 using the federal definition to regulate their 15 infrastructure. we are unable to do that and 16 others are unable to do that. Really what that 17 means, because I believe it's important to be 18 frank in the discussion, is that Verizon seeks 19 to have a definition of cable system that tries 20 to shape the future when, for instance, cable is Page 56 0 21 22 23 24 7AN9VERIZONHRG(1).tXt done through what's called Internet protocol. And, therefore, seeks to have a definition which would allow them to argue when they provide video by Internet as opposed to what the more WIDOMSKI COURT REPORTING (781) 246.0710 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 traditional cable, that this license no longer applies. so we believe that's a fundamental issue. whether or not verizon within a year or year and-a-half provides cable through Internet protocol, whether or not that's a cable system that's regulated by the cable act will depend on what the law is at that point and what a court says, but we think that should be determined at that time and not predetermined by changing of federal definition. I don't say that to be critical of verizon. I just say that to say that's a fundamental aspect that the town to be careful not to give up the application of this license by language. There's a case in the west coast, another company, walnut Creek, that's the very issue there. It's a cable license needed. we respect the fact and we appreciate the fact that verizon, unlike what's now called AT&T, seeks a cable license and we think that's great but we want to make sure that we use terms that allow Page 57 7AN9VERIZONHRG(1).tXt 23 this issue decided in Reading, based on what 24 happens in the country. Not based on how a 0 WIDOMSKI COURT REPORTING (781) 246.0710 62 1 word, a federally defined term is defined in 2 your license. so that's a large issue for the 3 town. 4 we hope that Verizon will view the cup 5 as 99 percent full because we're recognizing 6 their view of the world on Title 2 under FTTP 7 system and we hope that they'll see the federal 8 definition works for all of us. The future will 9 be what the future is but need not be decided 10 now by changing those definitions. 11 MR. TRANE: Madam chairperson, if I 12 could, two things? 13 one, Bill referenced a New York 14 decision, confirmation of a franchise that 15 verizon negotiated in Massapequa Park. What he 16 neglected to say I'm sure it's not 17 intentional is that verizon was specifically 18 in dune of 2005 given the ability to construct 19 their facilities as a noncable system as a 20 telecommunications facility as an upgrade. That 21 was an.issue that was settled in New York. That 22 goes back to some of the earlier discussions 23 we've had that verizon has the ability to build 24 their system under its existing Title 2 Page 58 JAN9VERIZONHRG(1).txt 0 WIDOMSKI COURT REPORTING (781) 246.0710 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 authority. That was one that was tested in New York. verizon was successful. Bill mentioned some issues relative to. cable system. I think it's really an issue of cable service but we'll continue to talk about these issues in the next couple of weeks. MR. SCHUBERT: I guess just sort of a follow up or support some of, I guess, maybe the town's perspective again. I think that one of the things you have to understand is that we don't know what the future holds and, you know, what you're bringing to the town right now, the competitive environment which we really want to achieve, I don't want to put us in the risk of nothing against you personally or verizon but all of a sudden giving verizon a competitive advantage where all of a sudden there is no competitor and verizon becomes the only service provider. whether it's cable or, you know, whatever the terminology is. I think that's a risk that I think it's worth the town to sort of prevent at this moment. And, right, who knows what the future will bring as far as federal regulations and decisions. WIDOMSKI COURT REPORTING (781) 246.0710 Page 59 0 JAN9VERIZONHRG(1).txt 64 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 if it isn't clear in this license then I think that we're at risk to where very quickly we go back to a noncompetitive situation where verizon might be the only provider. I think the level playing field, the language, I guess the advantage that verizon has as a telephone company and your ability to Title 2 to put up the wiring, the infrastructure, all those things, I think, are important to sort of, to achieve the competitive environment, we want to keep the competitive environment. MR. TRANE: Remember, the incumbent is the largest provider of cable services in the country. If there is a change in federal law regarding the provision of cable service, it would affect them and verizon. I don't think that would be the case. I think that in any instances, there would be two companies providing services in the town. Anything that happens in Washington, I certainly don't have a crystal ball is going to apply to all providers. so that needs to be taken into consideration. I think Bill and our side have a WIDOMSKI COURT REPORTING (781) 246.0710 65 Page 60 JAN9VERIZONHRG(1).tXt 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 difference of opinion what verizon is trying to do but I think we understand that the manager and gill have some concerns about protecting the community's interest. we have tried to do that. Bill has noted it's been a compromise and we have certainly, if you look at the record from what we submitted in August to the town to where we are, we have compromised a great deal. some on our side might say too much. we have compromised a great deal to try to reach an agreement. I think we'll continue to do that to work with them to get.an agreement that meets their concerns and also meets ours and we'll do that up until the 25 of January, if that's when the next hearing is. CHAIRPERSON ANTHONY: I would just say though that I think the town wants to have verizon come in and provide service. I think your ability to come in here is a great advantage and I don't think we have been that tough. I don't know what you have gone through in negotiation. I'm looking at it and WIDOMSKI COURT REPORTING (781) 246.0710 66 1 saying I don't think we are that tough. I think Page 61 JAN9VERIZONHRG(1).txt 2 we want to have you come in and you would like 3 to come in. I do want to say from what I can 4 see, I think the board is probably very 5 supportive of the negotiations and I think you 6 ought to be aware of it. 7 MR. TRANS: Duly noted. 8 CHAIRPERSON ANTHONY: Anything else? 9 MR. HECHENBLEIKNER: Just to be very 10 clear, Peter, your sense is that by the 25th 11 from a corporate perspective, the area of the 12 issue definition, you'll have a firm position so 13 that we won't look to another continuance? 14 MR. BOWMAN: I think I have to defer 15 to Paul'. 16 MR. TRANS: We have a firm position. 17 It's the one in front of you and that's our 18 position. 19 CHAIRPERSON ANTHONY: What I would 20 say, there is no point getting back in this 21 session if.we can't come to an agreement. 22 MR. SOLOMON: Let me just suggest it 23 two ways. I think it's important for the board 24 to have a complete record. I think for our 0 WIDOMSKI COURT REPORTING (781) 246.0710 67 1 purposes, we need a hearing for complete record. 2 Let me just again as we tried to 3 convince these good folks, if anyone can do Page 62 0 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt this, it's a large company with much hierarchy, it has to be in a large company. As I said before, I say this seriously, we could not have had two better representatives than Paul Trane and Tom Antonucci backed up by Peter Bowman. That they have made, they begin with their document and that document as you can imagine, the company and exceptional legal team has spent probably a year and-a-half, two years developing. And they worked with us to wordsmith and brainstorm how can we meet the goals of both parties. At any time you get to the last issues, that's what you're discussing but let that not get in the way of reflecting the fact that these folks have been incredible in trying to bridge the differences as I know you understand. But we're down to the difference. Let me make one last explanation of why this is so important to Reading. To the extent the town through its negotiation team, at WIDOMSKI COURT REPORTING (781) 246.0710 68 1 2 3 4 5 least, is prepared to recommend to the board, in the final analysis it's your decision, to accept the reference to Title 2, the infrastructure there is built according to that. we see the world differently but your committee is prepared Page 63. 0 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt to recommend that to you. To the extent to limit its application of both provisions in your license, not have a number of public works provisions, not enforce the bylaws and regulations you do have or might have pursuant to this cable license. All those compromises which your committee may likely recommend and you accept or reject, at least have a there's a theoretical basis why it is not as harmful to you as it could be and that is because as expressed by Verizon, the cable company exists in your right-of-way because they have cable license. These folks in your right-of-way for their other services pursuant to their state franchise. Therefore, to the extent that there may be compromises you make such as the reference to Title 2, your incumbent provider could not say, well, then we want the same thing. We want recognition that we're in your WIDOMSKI COURT REPORTING (781) 246.0710 69 1 2 3 4 5 6 7 right of way because of Title 2 or we're a telephone company because they don't argue that. They don't seek to be subject to Title 2 in the federal law on the telephone system. so that compromise has a, has a somewhat limited effect on your incumbent license. The definition of cable system, on the Page 64 a 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).txt other hand, by changing that definition, there's no .comparable unequal background. Meaning your cable company could likely say to you we want the same definition of cable system as you provided to Verizon. In which case you could be in a position where you would be required to give your incumbent cable company the same definition which would allow your incumbent company to say at one point, we're no longer a cable system either. Therefore, this license you have with us is no longer applicable. so we say to our friends at verizon to ask the town to make compromises where there's distinction between the two companies and there's some protection for the town as residents because of that distinction is one thing but to ask the town to make a compromise where your existing WIDOMSKI COURT REPORTING (781) 246.0710 70 1 2 3 4 5 6 7 8 9 franchise could be nullified by the change of definition is asking for more than at least your negotiation team believes is reasonable. we ask them to accept the cup 98 percent full and move on so your residence can be served with the Verizon cable. CHAIRPERSON ANTHONY: It sounds reasonable to me. MR. TRANS: Madam Chairperson, if I Page 65 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 JAN9VERIZONHRG(1).tXt could just and Bill as always has articulated the town's position. The one thing he is again not noting to you is in the federal definition, there's an exception for common carrier which is what the verizon is. MR. SOLOMON: We'll give you that definition. In fact, the federal definition we'll not only reference it, we'll do the whole ten sentences. we just don't have a different standard for Reading. CHAIRPERSON ANTHONY: I think you have heard the negotiating part, the town's negotiating position and I mean you can go back and forth and back and forth. It's not going to after a while it gets it's just got to WIDOMSKI COURT REPORTING (781) 246.0710 71 1 2 3 4 5 6 7 8 9 10 11 be decided. MR. TRANS: Agreed. As you noted; your support of the negotiation team we have duly noted it. I hope you note that our position is well grounded and well supported by our client. we look forward to trying to get to an agreement. we would much rather, we're here to negotiate. That's what our intention is and, hopefully, we'll reach an agreement. CHAIRPERSON ANTHONY: we certainly Page 66 0 12 13 14 15 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt hope so. we would love to have Verizon providing cable service. So let's get going here. MR. TRANE: That's why we're here. CHAIRPERSON ANTHONY: I think it's to a point, let's just cut to the chase and get going. MR. TRANE: If I could Madam chairperson, just for the record submit to the board a copy of the transcript from the last hearing as part of the record. CHAIRPERSON ANTHONY: Thank YOU. Now I can read what I said. WIDOMSKI COURT REPORTING (781) 246.0710 72 1 2 3 4 5 6 7 8 9 10 11 12 13 okay. January 26 25, we are going to have a continuation of the hearing. However, as chair I would just like to say if there is no new information, I think we open, continue it and move on. unless you have other things you want to talk about. MR. HECHENBLEIKNER: Our expectation actually is that we will either have a deal or not. if there is not a deal, then counsel will, or counsel will need to put on the record the issues that stand in the way. MR. SOLOMON: Would you like to have, authorize your manager to draft a draft decision Page 67 0 14 15 16 17 18 19 20 21 22 23 , 24 JAN9VERIZONHRG(1).tXt for that night or do you prefer to vote first and have that done afterwards? CHAIRPERSON ANTHONY: What decision? MR. HECHENBLEIKNER: I think we usually have a draft decision for you. CHAIRPERSON ANTHONY: Okay. MR. HECHENBLEIKNER: My understanding is verizon is in agreement by the 25th. MR. TRANE: I think it needs to be made clear that veriizon expects and hopes that we'll reach an agreement but obviously there are WIDOMSKI COURT REPORTING (781) 246.0710 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 remedies beyond the board, if they seek not to approve a franchise. Obviously, the spirit here, I think you can tell that is to try to reach an agreement. CHAIRPERSON ANTHONY: Yes. James? MR. BONAZOLI: I thought we were actually there. I thought we were pretty clear in our last meeting, three points. So I was actually a little surprised that we weren't there tonight and that we weren't notified we weren't there tonight. MR. HECHENBLEIKNER: You had it continued so you had to... CHAIRPERSON ANTHONY: Well, I think we have talked this subject to death at this point Page 68 0 16 17 18 19 20 21 22 23 24 7AN9VERIZONHRG(1).tXt so I think MR. HECHENBLEIKNER: You'll get a draft motion. CHAIRPERSON ANTHONY: okay. Could I have a motion, please? MR. SCHUBERT: Madam chairperson, this Board of selectmen continues the hearing on the Verizon application to January 25, 2006, at 7:00 p.m. in the police station community room, WIDOMSKI COURT REPORTING.(781) 246.0710 74 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 15 Union Street. CHAIRPERSON ANTHONY: Second? MR. TAFOYA: Second. CHAIRPERSON ANTHONY: All those in favor? Good night. Thank you very much. (Whereupon, the hearing adjourned at 8:10 p.m.) Page 69 JAN9VERIZONHRG(1).tXt 0 18 19 20 21 22 23 24 WIDOMSKI COURT REPORTING (781) 246.0710 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 COMMONWEALTH OF MASSACHUSETTS MIDDLESEX: SS I, IRMA WIDOMSKI, a Notary Public and Registered Professional Reporter, in and for the commonwealth of Massachusetts, do hereby certify that the foregoing transcript on January 9, 2006, is a true and accurate record of the testimony taken in the aforementioned matter to the best of my skill and ability. Registered Professional Reporter my commission expires January 22, 2010 Page 70