County, Verizon get closer to deal on FiOS TV service

Damage during installation is acknowledged

Wednesday, May 6, 2009

That could all change in the next few weeks, however, as the county government gears up to address the offer by Verizon Communications to provide high-speed cable TV service to residents and their local government and schools.

"We as a commission are very excited about this, and I think the county is too … we'll have some competition!" said Jim Lynn, chairman of the county's cable advisory commissioners.

The 15-year agreement would offer 100 percent digital transmission to homes and public buildings via a fiber-based broadband network, and act as direct competition to Comcast and its cable contract with the county.

Both contracts concern only cable services.

Verizon fees for 15 to 35 local broadcast and public, educational or government access channels start at $12.99 monthly, and then jump to $47.99 per month for the lowest tier of digital television.

Comcast offers local broadcast and basic digital cable packages at $18.70 and $60 per month, respectively.

Assembled for the first time since their last meeting in spring 2008, the cable commission gathered on the last day of April to hear the culmination of nearly a year's worth of negotiations between the communications company and the county.

"It was a laborious and very detailed process," said Charles County Administrator Paul W. Comfort. "There were about 30 meetings, and [the county] delivered the final product to Verizon in the fall of 2008."

The last few months have been spent wrapping up loose ends, Comfort said, and now the commission needs to review the agreement and set aside time to hear from the public.

Though the fiber-optic system is not new for Verizon, it will be a major change to the copper wire currently buried in the county's ground.

"Fiber is more reliable than copper, and more expandable for additional capacity," said Lori Edwards, Verizon cable franchising manager.

The fiber would not replace the existing wire, but overlay the current lines. This will be done by using a boring tool to get under the ground, and using a conduit to pull the fiber through to its planned position.

Though construction sites are inevitable in the county's rights of way, the boring tool eliminates the need for digging trenches.

"There will be homes that still have copper wire service, and we'll leave them alone," Edwards said. "Residents will get fiber only if they request it."

The proposed contract divides the county's cable connections into initial and extended service areas.

The former would have cable service up and running to most residential areas within 24 months, and all homes within three years. This area includes Waldorf and La Plata wire centers and spaces with a density of 30 households per mile are expected to have service in one to five years, and areas of 15 households per mile in six to 15 years.

The extended service area includes Baden, Bryans Road and Indian Head wire centers, and the hope is to have all residential areas in these sections of the county connected within eight years, with areas with 15 and 30 households per mile linked within 15 years.

Four channels would be dedicated for public, education and government access, and $250,000 would be given up front as a grant for such uses. Free cable service to a number of schools and government buildings would also be provided.

"The free service to public schools is an offer similar to that of Comcast's," said Rick Elrod, outside counsel for the county. "It seems Verizon has stepped up to that plate as well."

The county will also get 5 percent of the gross revenue from the cable service provided by Verizon, 1 percent of the gross revenue through the term of the agreement, and 0.06 percent of the gross revenue through June 2017.

Among the questions and concerns of the commissioners, the topics of construction and rural connections were most common.

The laying of the fiber has already begun, and with it has come complaints of blackouts and damaged water and sewer pipes at the hands of the digging crews.

Richard Aldridge, the county's director of the fiscal and administrative services IT administration, called these residential inconveniences "a big disturbance."

Aldridge did warn, however, that there were some service issues the county was not legally able to resolve. Those included rate regulation and programming selection that are controlled by federal laws.

As for discrepancies over rights of way, Aldridge said homeowners can request that equipment be moved if it is accidentally placed outside the utility easement.

Joseph Daniels, the assistant vice president of external affairs for Verizon, acknowledged the complaints and said the company was doing what it could to fix any problems.

"We're really moving at a breakneck speed, and we are aware there have been problems with the locations," Daniels said.

Another question shared by the commissioners was why the company could not service all areas of the county within the initial and extended service areas, such as Nanjemoy and Tompkinsville.

Edwards explained that covering rural areas has a twofold problem. There are often not enough cable subscribers to meet the density requirements, and even if there are enough interested parties, laying lines and hooking up distant connections can take a toll on a company's wallet.

Residents of those rural areas, neighbors living in the initial service area and any other county residents are invited to speak at the May 6 public hearing on the franchise agreement.

An engineer specializing in construction and compliance will be present to answer questions — per the request of the commissioners — and a representative from Comcast is expected to be there as well.

Go to www.charlescounty.org/verizon to view the agreement.

msomers@somdnews.com