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Verizon must have the same confused legal and PR strategists as AT&T. On the same day, Verizon releases one press release that applauds the California Senate Committee for the passage of a terrible state franchise - and then another announcing they are suing Montgomery County, Md., over negotiations for a video franchise there. The odd thing about the lawsuit, a representative for Montgomery County claims Verizon hasn't even filed an application yet.

In the case of the CA franchise, Verizon quotes the long dismissed Bank of America Study on 'consumer savings' (see Astroturf in Bloom).

three articles follow:

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from: PR Newswire

Verizon Applauds California Senate Committee Vote in Favor of Video Choice

Energy, Utilities and Communications Committee Approves Bill That Would Open Local Cable TV Markets to Competition, Lower Prices for Consumers

THOUSAND OAKS, Calif., June 29 /PRNewswire/ -- The California Senate Committee on Energy, Utilities and Communications, under the leadership of Sen. Martha Escutia, on Thursday approved Assembly Bill 2987, which would overhaul the state's outdated cable franchising process and pave the way for new competitors such as Verizon to offer consumers a choice in video programming, better technology and lower prices. At the same time, the bill, authored by Assembly Speaker Fabian Nunez and Assemblymember Lloyd Levine, chair of the Assembly Utilities and Commerce Committee, guarantees that local communities will continue to receive franchise fees consistent with those paid by incumbent cable companies. The bill has already received 77-0 approval in the Assembly. The following statement should be attributed to Verizon West Region President Tim McCallion:

"We applaud the leadership of Chairwoman Martha Escutia and her colleagues on the Energy, Utilities and Communications Committee. Their vote in favor of video franchise reform will help to bring the benefits of choice and competition to California's consumers. Cable prices have risen 86 percent over the past 10 years, according to the FCC; yet in markets in which Verizon initially launched its fiber-optic-based FiOS TV service, Bank of America found cable prices have dropped between 28 and 42 percent.

"Verizon has invested hundreds of millions of dollars in its new fiberoptic network in California, creating over 1,000 new jobs, but plans to expand the availability of FiOS TV have been delayed by inefficient local franchise negotiations that have lasted up to a year or more in some communities. The current franchising system is broken and AB2987 is the
solution."

VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high quality video and images, and other information are available at Verizon's News Center on the World Wide Web at http://www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

SOURCE Verizon

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from: Broadcasting Cable

Verizon Sues Maryland County Over Franchise

By John Eggerton -- Broadcasting & Cable, 6/29/2006 8:42:00 PM
Verizon has sued Montgomery County, Md., saying it is making unreasonable and illegal demands in negotiations for a video franchise there.

Among those: collect fees on broadband Internet service, 65 channels set aside for government use, attorneys fees, plus cash and free services. The county switchboard was closed at press time.

In the suit, Verizon alleges that the county's demands violate antitrust laws and FCC regulations and effectively protect the incumbent cable operator.

Verizon wants the court to enjoin current county franchising laws and direct the county to negotiate a franchise on lawful terms within 60 days.

Verizon first asked for the franchise for its FiOS multichannel video service in May 2005.

Verizon points out that it has been able to strike deals with neighboring Howard County and, by next week, with Ann Arundel County, Md., as well as the Cities of Bowie and Laurel.

The suit, filed Thursday in the U.S. District Court in Greenbelt, Md., is against a Washington suburban county that is home to numerous legislators and comes at a time when Verizon and other telcos are arguing for passage of a national video franchise bill in part by saying that unreasonable franchise demands are holding up the roll-out of broadband.

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frm: MSNBC

Maryland county defends TV policy as Verizon sues

Reuters
Updated: 4:05 p.m. ET June 30, 2006

NEW YORK - Maryland's Montgomery County on Friday defended its policy for granting cable franchises after it was sued by Verizon Communications Inc. over its licensing process to offer local subscription TV service.

The telecoms company filed a lawsuit Thursday to invalidate the licensing process, saying it violated antitrust and communications laws as well as free speech rights.

"The County intends to vigorously defend its lawful processes which are designed to create fair and open competition for the benefit and protection of consumers while treating all cable providers equally," Montgomery County's chief administrative officer, Bruce Romer, said in a statement.

Verizon alleged that the county illegally made demands including the right to collect fees on phone and high-speed Internet services, that the company set aside about 65 channels for public, educational and government programming and that it pay additional cash.

Romer said that while the county and Verizon have met, the company had not yet submitted a franchise application.

"So they are challenging a process which applies to their competitors but which they have not yet officially entered," Romer said.

The lawsuit comes as Verizon tries to expand into the subscription TV business and compete with cable operators, such as Comcast Corp., which already has a license in Montgomery County, an affluent suburb outside Washington, D.C.

Verizon and other carriers are pressing Congress to simplify the process to obtain cable franchises so they can offer video service to compete with cable operators. However, it is unclear whether U.S. lawmakers will act this year.