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Leora Hochstein Executive Director Federal Regulatory

1300 I Street, NW, Suite 400 West , DC 20005

Phone 202 515-2535 May 11, 2006 Fax 202 336-7922 [email protected]

Ex Parte

Marlene Dortch Secretary Federal Communications Commission 445 12th Street, S.W. Washington, DC 20554

Re: Implementation of Section 621(a)(1) of the Cable Communications Policy Act of 1984 as Amended by the Cable Television Consumer Protection and Competition Act of 1992, MB Docket No. 05-311

Dear Ms. Dortch:

On May 10, 2006, Dee May, David Young, Will Johnson and Leora Hochstein met with the following staff members from the FCC’s Wireline Competition Bureau: Julie Veach, Renee Crittendon, Marcus Maher, Al Lewis, and William Kehoe. We reviewed the status of our fiber-to- the-premises (FTTP) deployment and the availability of our FiOS video service and Internet access offerings. In this regard, we provided staff with the attached pamphlets describing our FTTP deployment and our video service offering. In addition, we discussed our recommendations for addressing some of the problems associated with the current video franchising process, as summarized in the attached document. In discussing some of the problems with imposing build- out obligations on competitive providers, we used the attached map of the Town of Hempstead, to show that telephone wire centers – the basis on which Verizon upgrades its network to fiber – do not correspond to LFA boundaries.

Sincerely,

Attachments cc: Julie Veach Renee Crittendon Marcus Maher Al Lewis William Kehoe

ATTACHMENT A FFiibbeerr !!

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Verizon’s ambitious fiber-to-the-premises initiative transforms customers’ experiences with innovative voice, data, and video services.

On May 19, 2004, Verizon announced that it was network in 16 states – , , embarking on the most significant transformation , , , , in over a century of the technology used to carry , , , phone calls, data, and video to and from homes New York, , , , and businesses. This new technology – known as Texas, , and Washington. fiber to the premises (FTTP) – uses fiber-optic To help build the network across the country, cable and optical electronics to directly link homes Verizon has hired about five thousand new and businesses to Verizon’s network. employees and opened customer call centers in Verizon is building this network of the future to Providence, RI, Dallas, TX, Hampton, VA, provide customers with unmatched network Thousand Oaks, CA, and Dewitt, NY. reliability, incredible , and exciting new options for voice, data, and video connections.

Fiber-optics unleashes a range of advanced communications services. This new suite of fiber- FiOS delivers! SM optic services is called Verizon FiOS . “Keller sits at the forefront of the fiber frontier, and our citizens and businesses stand to benefit While the use of fiber-optic technology is common from an entirely new era of technology that will positively impact their quality of life.” throughout the telecom industry, Verizon is the Julie Tandy, Mayor of Keller, TX first company to use fiber to directly connect “Verizon’s fiber-to-the-premises initiative homes and businesses on a widespread scale. expands the company’s broadband capabilities and will create more union jobs. Verizon is Since rolling out its FTTP network in 2004, giving the CWA access to jobs of the future and the opportunity to be a vital part of a promising Verizon has passed over 3 million homes and growth area.” Andy Milburn, Vice President, businesses with the new technology. Verizon is District 6, Communications Workers of America on track to pass a total of 6 million premises by the end of 2006. Verizon is now building its FTTP FiOS Internet Service All FiOS Business Internet service packages include: Verizon is offering groundbreaking high-speed ƒ 24/7 business-grade technical support Internet services over its fiber-to-the-premises ƒ 20 Mb of Web space ƒ Unlimited remote dial-up access network. FTTP delivers data speeds of up to 30 megabits-per-second (Mbps), which is at least 10 Digital subscriber line (DSL) service will remain times faster than consumer broadband speeds Verizon’s most widely available form of high- typically available today. FTTP has the capability speed Internet access for the foreseeable future, to provide nearly unlimited bandwidth. as the company ramps up FTTP deployment.

Connection speeds (downstream / upsteam) and FiOS TV Service pricing offered to FiOS Internet consumers are: ƒ 5 Mbps / 2 Mbps for $34.95 a month as part of Verizon’s FiOS TV, the future of television, is a package or with an annual service available now in select communities in California, agreement, or $39.95 month-to-month. Florida, Maryland, Massachusetts, New York, ƒ 15 Mbps / 2 Mbps for $44.95 a month as part of a package or with an annual service Texas and Virginia. Verizon will add new markets agreement, or $49.95 month-to-month. in 2006. FiOS TV offers customers a competitive ƒ 30 Mbps / 5 Mbps for $179.95 a month as part alternative to cable TV or satellite. Customers of a package or with an annual service agreement, or $199.95 month-to-month. can buy FiOS TV as a stand-alone service or packaged with voice and/or FiOS Internet service. All FiOS Consumer Internet service packages include: This next-generation technology has customers ƒ Free wireless router watching television in a whole new light. Fiber ƒ Choice of online services: Verizon Yahoo! or delivers amazingly sharp pictures and sound, and MSN® Premium ƒ 24/7 live technical support has the capacity to transmit a wide array of high- ƒ Up to nine verizon.net e-mail accounts definition programming (HDTV) that is so clear ƒ Access to newsgroups and intense it seems to leap from the TV screen. ƒ Personal Web space of 10 MB ƒ 30-day money-back guarantee Verizon’s network design includes backup facilities not common to traditional cable systems, Small businesses in parts of California, Delaware, such as duplicate "head ends" where the TV Florida, Maryland, New Jersey, Pennsylvania, service receives national programming. Texas, and Virginia also can sign up for FiOS Internet: And customers can control it all with Verizon’s ƒ 15 Mbps / 2 Mbps for $59.95 (dynamic IP powerful interactive programming guide. Even address) and $99.95 (static IP address). more, a digital video recorder (DVR) is available ƒ 5 Mbps / 5 Mbps for $169.95 (dynamic IP to give customers more control over their viewing address) and $209.95 (static IP address). experience, allowing them to record, pause, and ƒ 30 Mbps / 5 Mbps for $349.95 (dynamic IP rewind programs – even live TV. With an address) and $389.95 (static IP address). abundant library of video on demand (VOD) titles, customers can watch what they want, whenever up for Verizon’s FiOS Internet service and the they want. And they have other features like pay- Freedom voice service. per-view and parental controls. FiOS TV subscribers can also choose from FiOS TV subscribers can choose from three packages and premium channels with simple-to-understand service offerings, each with programming that meets their special interests: built-in choice and value. They can then choose ƒ A 15-channel sport-package is available for from packages and premium channels with $5.95 a month. programming that meets their special interests. ƒ A movie package, with 44 channels of Starz, Showtime, Encore, The Movie Channel, Flix Information on packages, programming and local and Sundance is $11.95 a month. channel lineups is available at ƒ Customers can buy the sports and movie www.verizon.net/fiostv. packages together for $14.95 a month. ƒ Verizon also offers 14 HBO channels and 12 Verizon offers three set-top boxes: standard Cinemax channels as premium services, with definition for $3.95 per month; high definition, each set of channels available for $14.95. Subscribers who want both HBO and which includes HD channels, for $9.95 per month; Cinemax pay $24.95 per month. and a digital video recorder set-top box with HD channels for $12.95 per month. Programming choices for African-American, Asian, Russian and other multicultural and ethnic The services include: audiences are available in every market. Because ƒ Basic – With access to 15-35 local broadcast, weather and community channels, as well as FiOS TV has so much capacity, it will also be an video-on-demand, for $12.95 per month. The outlet for emerging and independent networks to service is digital with a set-top box. Basic is showcase their diverse programming. also available as an analog service that does not require a set-top box for viewing. ƒ Expanded Basic – Verizon’s lead offer, Hardware / Software Partners delivers more than 180 video and music channels for $39.95 a month. This tier Westell Technologies manufactures the Verizon includes access to more than 2000 on- TM demand titles. This service requires a One communications command center, which standard-definition set-top box or a high- definition set-top box for HD channels. ƒ La Conexión – A tier designed for bilingual households who enjoy TV programs in English and Spanish, for $32.95 per month. The package includes nearly 140 channels with English- and Spanish-language programming and access to more than 2000 on-demand titles.

Discounts of up to $10 off the monthly price for FiOS TV are offered to subscribers who also sign- fully integrates voice and data services into a Verizon’s IP-based video-on-demand service is single device. Verizon One – available for powered by the SeaChange IP Video System, the $149.99 with a one-year DSL service agreement most widely used media platform for on-demand or at a retail price of $199.99 – includes a DSL television, with capabilities to support interactive modem, 802.11g wireless router, 5.8 Ghz cordless advertising, games-on-demand and other new telephone, and a color touch screen. applications.

Using the touch screen, customers can: Yahoo! provides a fully integrated web portal to ƒ Call with one touch from their online address Verizon Online’s FiOS and DSL subscribers. book or SuperPages directory listings. ƒ Check the weather, news headlines, movie The Basics of Fiber Optics listings, sports scores, stocks, and more. ƒ Leave notes for other household members How does FTTP work? Fiber-optic cables with the free-style memo pad. consist of bundles of hair-thin glass strands. ƒ Access and manage an online calendar. Laser-generated pulses of light transmit voice,

Verizon One is also configured to support data, and video signals via the fiber at speeds far additional features for customers subscribing to exceeding today’s copper-wire systems. Verizon’s iobiSM Home service, which lets What are the advantages of FTTP? Fiber has a customers manage all of their communications via number of advantages over copper-wire: a single user interface. ƒ FTTP provides nearly unlimited bandwidth. Tellabs and Motorola provide the central office ƒ FTTP provides more reliable service that is less susceptible to inclement weather and is and customer premises optical electronics for the easier to maintain. project – such as Optical Line Terminals, Optical ƒ FTTP enables a wide variety of uses, from Network Terminals, and video-optimized Optical interactive content and home shopping to Amplifiers – also known as the “active” elements telecommuting to telemedicine and audio / video on demand. of FTTP technology. Motorola also helps build ƒ FTTP is extremely flexible to meet customer the video capability of the FTTP network, preferences – new products and services can providing head-end technology and digital set-top be activated remotely, either permanently or on demand. boxes.

ADC, Corning Cable Systems, 3M, Prysmian

Communications Cables and Systems USA, Preformed Line Products, Sumitomo Electric

Lightwave, and Tyco Electronics provide the fiber-optic cabling and other outside plant equipment for the project, also known as the “passive” elements of FTTP technology.

May 10, 2006 FFiibbeerr !!

TToo tthhee PPeeooppllee

Verizon has deployed FTTP and FiOS Internet service is available in these communities*:

California 11. Augustine Beach 57. Creeks End 103. Hockessin Chase 1. Apple Valley 12. Augustine Creek 58. Cricket Hill 104. Hockessin Greene 2. Banning 13. Autumn Hills 59. Darley Woods 105. Hockessin Hills 3. Beaumont 14. Autumnwood 60. Dartmouth Woods 106. Hockessin Hunt 4. Calimesa 15. Avignon 61. Deerborne Woods 107. Hockessin Valley Falls 5. Camarillo 16. Barbs Farm 62. Deerfield 108. Hockessin Woods 6. Chino 17. Barkley 63. Delaware City 109. Holiday Hills 7. Chino Hills 18. Bayshore 64. Drawyers Creek 110. Holly Oak Acres 8. Corona 19. Baywood 65. Dutch Neck Farms 111. Indian Field 9. Fort Irwin 20. Beacon Hill 66. Eastburn Farms 112. Iron Gates 10. Hermosa Beach 21. Bear 67. Elwin Manor 113. Jarrell Farms 11. Huntington Beach 22. Beau Tree 68. Enchanted Acres 114. Julias Place 12. Indio 23. Bella Vista 69. Evergreen Acres 115. Kershaw Acres 13. Lake Elsinore 24. Belle Terre 70. Exton 116. Kingsridge 14. Loma Linda 25. Bishops Walk 71. Fairfield At Long Neck 117. Lancashire 15. Malibu 26. Bon Ayre 72. Fairways At Vandegrift 118. Larchmont 16. Manhattan Beach 27. Bon Mont 73. Fairwoods 119. Leisure Point 17. Menifee 28. Brackenville Woods 74. Farmstead 120. Lewes 18. Montclair 29. Brandon 75. Forest Knoll 121. Limestone Hills 19. Murrieta 30. Brandywine Forge 76. Forest Ridge 122. Linden Heath 20. Ontario 31. Brandywood 77. Foulk Woods 123. Lingo Estates 21. Pomona 32. Brick Mill Farm 78. Fox Hollow 124. Little Baltimore 22. Rancho Cucamonga 33. Bridgeville 79. Fox Hunter Crossing 125. Long Neck Shores 23. Redondo Beach 34. Broadmoor Estates 80. Fox Meadow Farms 126. Lynnfield 24. Sun City 35. Brookhill Farms 81. Foxpath 127. Manley 25. Sunset Beach 36. Brookwood Crossing 82. Gam Crest 128. Maplechase 26. Temecula 37. Cameron Hills 83. Gateway Farms 129. Masseys Landing 27. Topanga 38. Cannonshire 84. Governors Square 130. Mayfield 28. Victorville 39. Cantwell Ridge 85. Grande View Farms 131. Meadow Run 29. Westminster 40. Carpenter Woods 86. Grants Ridge 132. Meadowbrook Farms South 30. Wildomar 41. Castlebar 87. Graylyn Crest 133. Meeting House Hill 42. Cedar Farms 88. Great Oak Farms 134. Meeting House Meadow Connecticut 43. Centerville Meadows 89. Green Acres 135. Mendenhall Village 1. Greenwich 44. Chalfonte 90. Greenville 136. Merestone 45. Channin 91. Hampton Pointe 137. Mermaid Run Delaware 46. Chapel Hill 92. Hawkes Aerie 138. Middle Run Meadow 1. Adare Village 47. Chapel Woods 93. Hawthorne 139. Middletown 2. Ainsley Woods 48. Charlan 94. Heather Valley 140. Milford Meadows 3. Alexander Farms 49. Charter Oaks 95. Heather Woods 141. Millbourne 4. Angola 50. Christina Woods 96. Heatherton 142. Millbranch 5. Angola By The Bay 51. Church Hill 97. Hickory Ridge 143. Millsboro 6. Antrim 52. Cinnamon Station 98. Highland Woods 144. Misty Vale Farm 7. Appoquin Farms 53. Cobblestone 99. Highview 145. Mockingbird Hill 8. Arden 54. Colton Meadow 100. Hillstream 146. Munsee 9. Asbury Chase 55. Commodore Estates 101. Hitchens Farm 147. Naamans Gardens 10. Auburn 56. Coopers Run 102. Hockessin 148. Newark

*FiOS service may be available to portions of these communities as Verizon continues its FTTP network deployment. 149. Nob Hill 216. Wellington South 16. Edgewater 6. East Kingston 150. North Saint Georges 217. Wellington West 17. Ellicott City 7. Epping 151. North Star 218. Wellington Woods 18. Fort Washington 8. Exeter 152. Northshire 219. West Meadows 19. Germantown 9. Greenland 153. Oak Forest 220. Westbrite 20. Glen Echo 10. Kensington 154. Oakwood Hills 221. Westgate Farms 21. Hillcrest Heights 11. Lee 155. Odessa Chase 222. Westover Chase 22. Kensington 12. Londonderry 156. Odessa National 223. Westridge 23. Largo 13. South Nashua 157. Old Post Farm 224. Westwoods 24. Laurel 14. New Castle 158. Piersons Ridge 225. Wexford Glen 25. Lothian 15. Newington 159. Pine Tree Estates 226. White House Beach 26. Mayo 16. Newton 160. Pine Valley Farms 227. Whitebriar 27. Millersville 17. Nottingham 161. Pines At Long Neck 228. William Ritter Manor 28. Mitchellville 18. Plaistow 162. Pleasant Valley Estates 229. Williamsburg Court 29. Odenton 19. Portsmouth 163. Pleasant Valley Farms 230. Wilmington 30. Olney 20. Rye 164. Port Penn 231. Winding Creek Village 31. Pasadena 21. Salem 165. Post And Rail Farms 232. Windward 32. Potomac 22. Stratham 166. Pot Nets Bayside 233. Windybush 33. Sandy Spring 23. Windham 167. Pot Nets Coveside 234. Woodcroft 34. Severna Park 168. Pot Nets Creekside 235. Woodlawn Estates 35. Spencerville New Jersey 169. Pot Nets Dockside 236. Wyndom 36. Wheaton 1. Allendale 170. Pot Nets Lakeside 237. Wynnwood 2. Alpine 171. Pot Nets West 238. Yeatmans Estates Massachusetts 3. Bergenfield 172. Preserve At Lafayette Hill 239. Yeatmans Mill 1. Acton 4. Bernards Township 173. Quail Hollow 240. Yorklyn 2. Andover 5. Bernardsville 174. Quail Ridge 241. Yorklyn Ridge 3. Bedford 6. Bound Brook 175. Quaker Hill 4. Belmont 7. Bridgewater Township 176. Quaker Lea Florida 5. Boxford 8. Cherry Hill 177. Ramsey Ridge 1. Bradenton 6. Burlington 9. Closter 178. Rolling Ridge 2. Brandon 7. Canton 10. Colts Neck 179. Runnymeade 3. Carollwood 8. Dedham 11. Demarest 180. Saddle Ridge 4. Dover 9. Georgetown 12. Denville 181. Saint Georges Heights 5. Land O Lakes 10. Hamilton 13. Dumont 182. Sanford Ridge 6. Lakewood Ranch 11. Holliston 14. East Hanover Township 183. Sea Farers Village 7. Lithia 12. Hopkinton 15. East Windsor Township 184. Shenandoah 8. Lutz 13. Lakeville 16. Eatontown 185. Sherwood Green 9. Odessa 14. Lexington 17. Emerson 186. Signal Hill 10. Oldsmar 15. Littleton 18. Evesham Township 187. South Saint Georges 11. Riverview 16. Lynnfield 19. Ewing 188. Southwood 12. Sarasota 17. Marlboro 20. Fair Haven 189. Southwood Estates 13. Seffner 18. Medway 21. Far Hills 190. Spring Creek 14. Siesta Key 19. Middleboro 22. Franklin Lakes 191. Stenning Woods 15. Tampa 20. Natick 23. Glen Rock 192. Stone Mill 16. Temple Terrace 21. Newton 24. Green Brook 193. Stonefield 17. Valrico 22. Nobscott 25. Hanover Township 194. Stoneridge 18. Wesley Chapel 23. North Reading 26. Harding Township 195. Sugar Loaf Chase 24. Reading 27. Harrington Park 196. Sugar Loaf Farms Indiana 25. Sherborn 28. Haworth 197. Sycamore Farms 1. Fort Wayne 26. Southborough 29. Hightstown 198. Tenby Chase 2. New Haven 27. Sudbury 30. Hillsdale 199. Terraces On Iron Hill 28. Tewksbury 31. Hohokus 200. The Hills Of Hockessin Maryland 29. Topsfield 32. Hopewell Township 201. The Peninsula 1. Annapolis 30. Wakefield 33. Lawrence Township 202. The Reserve At Ironside 2. Arnold 31. Wellesley 34. Little Silver 203. Thomas Cove 3. Bowie 32. Wenham 35. Long Hill Township 204. Thomas Landing 4. Boyds 33. West Newbury 36. Mahwah 205. Thornberry 5. Brinklow 34. Westboro 37. Medford Lakes 206. Timberlane 6. Brookeville 35. Westwood 38. Medford Township 207. Townsend 7. Burtonsville 36. Winchester 39. Mendham 208. Tree Top Valley 8. Cabin John 37. Woburn 40. Mendham Township 209. Valley Pointe 9. Clarksburg 41. Middlesex 210. Vintage Village 10. Columbia New Hampshire 42. Middletown Township 211. Walnut Hill 11. Crofton 1. Atkinson 43. Midland Park 212. Weatherhill Farms 12. Crownsville 2. Bedford 44. Millstone Township 213. Webster Farms 13. Damascus 3. Brentwood 45. Monroe Township 214. Wellington Hills 14. Davidsonville 4. Danville 46. Morris Plains 215. Wellington Meadows 15. Dayton 5. Derry 47. Morris Township 48. Morristown 28. Croton On Hudson 95. Niskayuna 2. Ambler 49. Mountain Lakes 29. Delmar 96. North Castle 3. Baldwin Township 50. New Milford 30. Dewitt 97. North White Plains 4. Beechview 51. Northvale 31. Dix Hills 98. Nyack 5. Bell Acres 52. Norwood 32. Dobbs Ferry 99. Oceanside 6. Birmingham 53. Oakland 33. East Meadow 100. Old Westbury 7. Bridgeville 54. Oceanport 34. East Norwich 101. Orangeburg 8. Brookline 55. Old Tappan 35. East Rockaway 102. Ossining 9. Buckingham 56. Oradell 36. East Setauket 103. Oyster Bay 10. Caln 57. Paramus 37. East Syracuse 104. Oyster Bay Cove 11. Castle Shannon 58. Parsippany 38. East White Plains 105. Palisades 12. Cecil 59. Passaic 39. East Williston 106. Patterson 13. Chadds Ford 60. Pennington 40. Eastchester 107. Pearl River 14. Chalfont 61. Ramsey 41. Elmont 108. Piermont 15. Charlestown 62. Randolph Township 42. Elmsford 109. Plainview 16. Chester Heights 63. Red Bank 43. Farmingville 110. Pleasantville 17. Coatesville 64. Ridgewood 44. Fayetteville 111. Pomona 18. Collegeville 65. River Edge 45. Feura Bush 112. Port Chester 19. Collier 66. River Vale 46. Franklin Square 113. Port Washington 20. Concord 67. Rockaway Boro 47. Garden City 114. Pound Ridge 21. Derry 68. Rockaway Township 48. Garnerville 115. Purchase 22. Dormont 69. Rockleigh 49. Glen Head 116. Purdys 23. Downingtown 70. Roosevelt 50. Glenmont 117. Rockaway Beach 24. Doylestown Boro 71. Rumson 51. Goldens Bridge 118. Rockaway Park 25. Doylestown Township 72. Saddle River 52. Great Neck 119. Rockville Centre 26. Dublin 73. Sea Bright 53. Great Neck Estates 120. Ronkonkoma 27. East Bradford 74. Shamong Township 54. Greenlawn 121. Roslyn 28. East Brandywine 75. Shrewsbury 55. Greenwich 122. Rye 29. East Caln 76. Southampton Township 56. Harrison 123. Sands Point 30. East Goshen 77. Tinton Falls 57. Hartsdale 124. Seaford 31. East Hanover 78. Upper Saddle River 58. Hastings On Hudson 125. Selkirk 32. East Marlborough 79. Voorhees Township 59. Hawthorne 126. Setauket 33. East Pikeland 80. Waldwick 60. Hewlett 127. Sleepy Hollow 34. East Whiteland 81. Warren Township 61. Hicksville 128. Slingerlands 35. Easttown 82. Washington Township 62. Holbrook 129. South Bellmore 36. Edgmont 83. West Windsor Township 63. Holtsville 130. South Nyack 37. Exton 84. Westwood 64. Huntington 131. South Salem 38. Falls 85. Wyckoff 65. Huntington Station 132. Sparkill 39. Franklin Park 66. Irvington 133. Spring Valley 40. Glen Mills New York 67. Jamesville 134. Staten Island 41. Glenfield 68. Jericho 135. Stony Brook 42. Green Tree 1. Albertson 69. Katonah 136. Suffern 43. Hampton 2. Amityville 70. Lake Grove 137. Syosset 44. Hatfield Boro 3. Ardsley 71. Larchmont 138. Syracuse 45. Hatfield Township 4. Ardsley On Hudson 72. Latham 139. Tappan 46. Haysville 5. Armonk 73. Lawrence 140. Tarrytown 47. Hilltown 6. Baldwinsville 74. Levittown 141. Thornwood 48. Horsham 7. Bayville 75. Locust Valley 142. Tuckahoe 49. Hummelstown 8. Bedford 76. Lynbrook 143. Valhalla 50. Indiana 9. Bedford Hills 77. Malverne 144. Valley Cottage 51. Kennett 10. Bellmore 78. Mamaroneck 145. Valley Stream 52. Kennett Square 11. Bethpage 79. Manhasset 146. Wantagh 53. Kilbuck 12. Blauvelt 80. Manhattan 147. West Hempstead 54. Langhorne 13. Brewerton 81. Manlius 148. West Nyack 55. Langhorne Manor 14. Briarcliff Manor 82. Massapequa 149. White Plains 56. Lansdale 15. Bronxville 83. Massapequa Park 150. White Plains City 57. Leet 16. Carle Place 84. Melville 151. Williston Park 58. Londonderry 17. Carmel 85. Merrick 152. Woodbury 59. Lower Gwynedd 18. Cedarhurst 86. Mill Neck 153. Woodmere 60. Lower Makefield 19. Centereach 87. Millwood 154. Yonkers 61. Lower Paxton 20. Central Nyack 88. Mineola 62. Lower Providence 21. Chappaqua 89. Monsey 63. Lower Salford 22. Cicero Oregon 90. Mount Kisco 64. Lower Southampton 23. Clarkstown 1. Beaverton 91. Nanuet 65. Lower Swatara 24. Clay 2. Hillsboro 92. Nesconset 66. Malvern 25. Cold Spring Harbor 93. New Hyde Park 67. Mccandless 26. Congers Pennsylvania 94. New Rochelle 68. Montgomery 27. Copiague 1. Aleppo 69. Mt Lebanon 98. Trappe Rhode Island 25. Wylie 70. New Britain Boro 99. Tredyffrin 1. North Kingstown 71. New Britain Township 100. Upper Dublin 2. Warwick Virginia 72. Newlin 101. Upper Gwynedd 1. Annandale 73. Newtown Boro 102. Upper Makefield Texas 2. Arlington 74. Newtown Township 103. Upper Merion 1. Allen 3. Ashburn 75. Northampton 104. Upper Moreland 2. Carrollton 4. Brambleton 76. Ohara 105. Upper Southampton 3. Colleyville 5. Burke 77. 106. Upper St Clair 4. Coppell 6. Carrollton 78. Osborne 107. Uwchlan 5. Denton 7. Centreville 79. Perkiomen 108. Warminster 6. Double Oak 8. Chantilly 80. Phoenixville 109. Warrington 7. Flower Mound 9. Chesterfield 81. Plumstead 110. Warwick 8. Fort Worth 10. Crittendon 82. Pocopson 111. West Bradford 9. Garland 11. Falls Church 83. Radnor 112. West Brandywine 10. Grapevine 12. Fort Belvoir 84. Ross 113. West Chester 11. Hebron 13. Herndon 85. Scott 114. West Goshen 12. Highland Village 14. Kirkpatrick Farms 86. Sewickley 115. West Hanover 13. Irving 15. Leesburg 87. Sewickley Heights 116. West Marlborough 14. Keller 16. Mclean 88. Sewickley Hills 117. West Pikeland 15. Lewisville 17. Midlothian 89. Shaler 118. West View 16. Lucas 18. Moseley 90. Skippack 119. West Whiteland 17. Murphy 19. Newport News 91. South Fayette 120. Westtown 18. Parker 20. Norfolk 92. South Hanover 121. Willistown 19. Plano 21. Quantico Marine Corp Base 93. Spring City 122. Worcester 20. Rowlett 22. Reston 94. Springfield 123. Wrightstown 21. Sachse 23. Richmond 95. Susquehanna 124. Yardley 22. Southlake 24. South Riding 96. Thornbury 23. St. Paul 25. Springfield 97. Towamencin 24. Westlake 26. Virginia Beach

March 17, 2006 FFiibbeerr !!

ttoo tthhee PPeeooppllee

Verizon has announced FiOS TV programming agreements with these networks: Channel, The History Channel en Disney-ABC Television Group – ESPN Networks – includes ESPN, español, and Crime & Investigation Includes ABC Family, ABC News Now, ESPN2, ESPN Classic, ESPNEWS, Network. Also included is VOD Disney Channel, Toon Disney and ESPNU, ESPN Deportes (ESPN’s 24- content from all of A&E’s services. SOAPnet. Verizon will also be granted hour Spanish-language sports retransmission consent of ABC’s network), ESPN HD, and ESPN2 HD. Lifetime Networks – Includes owned and operated television stations Lifetime, Lifetime Movie Network and NFL Network – The first 24-hour as part of the agreement. Lifetime Real Women. network dedicated to the National NBC Universal Cable – 10 networks, Football League and the sport of Scripps Networks – The broad including Bravo, CNBC, CNBC World, football. Also included are NFL portfolio of Scripps Networks’ content MSNBC, SCI FI Channel, Trio, USA, Network in HD and NFL on Demand. includes HGTV, Food Network, DIY ShopNBC, , and mun2. Network, FINE LIVING, Great Mid-Atlantic Sports Network – Also included are NBC and Universal American Country (GAC) and Shop at MASN is the television home of the HD, a service that features high- Home – as well as video-on-demand Washington Nationals in the mid- definition films, TV shows, performing programming. Also included are Atlantic region. arts, sports, and special events. Scripps Networks new high-definition World Wrestling Entertainment – channels, HGTV-HD and Food Turner Broadcasting System – WWE 24/7 video-on-demand Network-HD, which will be launched in Includes TBS, TNT, CNN, Headline leverages WWE's 75,000-hour library, early 2006. News, Cartoon Network, Turner the largest of its kind in the world, Classic Movies (TCM), CNN The Weather Channel – Includes featuring the leading wrestling and International, CNN en Español, and Weather Channel, the only national other sports entertainment brands and Boomerang. Also included is TNT in weather information network, and its programming. HD. complementary all-local service, Discovery Communications – 14 Weatherscan. Showtime Networks – 11 networks, networks, including Discovery including Showtime, Showtime Too, TVN Entertainment – Video-on- Channel, TLC, Animal Planet, Travel Showtime Showcase, Showtime demand, including new studio Channel, Discovery Health Channel, Beyond, Showtime Extreme, Showtime releases, a library of previous Discovery Kids Channel, Discovery Women, Showtime Next, Showtime releases, independent movies, family Times Channel, The Science Channel, Family Zone, The Movie Channel, and kids programming, and specialty Discovery Home Channel, Military TMC xtra, and Flix. Also included are VOD networks. Channel, Discovery en Español, FitTV, Showtime HD and The Movie Channel BBC America, and Discovery HD Varsity TV – The only 24-hour HD, Showtime On Demand, and The Theater. Also included is Discovery network dedicated to teenagers, Movie Channel on Demand. On Demand. featuring teen-created and Starz Entertainment Group – 13 professionally produced programming. A&E Television Networks – 7 movie channels, including Starz and networks, including A&E, The History MTV Networks – Includes CMT, Encore brands, Starz On Demand, and Channel, The Biography Channel, Comedy Central, LOGO, MTV, MTV2, Starz HDTV. History International, Military History MTV Hits, MTV Jams, MTV Español, Nickelodeon, Nick at Nite, Nick2, Cine Mexicano – The only Home Shopping Network – Includes Nicktoons, GAS Noggin/The N, Spike contemporary Spanish language HSN and America's Store. TV, TV Land, VH1, VH1 Classic, VH1 Mexican movie network featuring Expo TV – The first TV network offering Country, VH1 Soul and VH Uno. Also dramas, comedies and action interactive, on-demand shopping for included are MTV’s channels adventure films. popular products. specifically designed to super-serve La Familia Cosmovisio (LFC) – ethnic populations in the U.S. Jewelry Television – The only home Provides a unique, Spanish-language including: MTV Chi, MTV Desi, and shopping network to focus exclusively on alternative for families, with MTV K. the sale of fine jewelry and gemstones. wholesome entertainment that honors Gospel Music Channel – The first 24- the Hispanic culture. Ovation, The Art Network – The hour network devoted to all styles of nation's only television network with a full TV Chile – A leading Spanish gospel music. schedule of programming devoted language channel with programming exclusively to the arts. Soundtrack Channel – Featuring appropriate for all age groups. music videos from movie and Oxygen – Oxygen is a leading creator of TV Colombia – A 24 x 7 Spanish television soundtracks. programming for younger women. It is language channel for the entire family, the only cable network owned and MavTV – A new network targeting men with multi-target programming operated by women. aged 15-24, with an emphasis on featuring news, sports, live talk shows, sports and gaming. variety shows and kids’ programs from LIME – Network that speaks to a Colombia’s leading broadcasters and growing community that wants to lead a GolTV – The only bilingual content providers. healthier, greener, balanced life. (English/Spanish) channel in the U.S. dedicated to soccer. EWTN Español – EWTN Español is The Pentagon Channel – Dept. of the world’s largest Spanish Catholic Defense channel broadcasting military Sí TV – The only English-language cable network enjoyed by millions in news and information. Latino network in the nation featuring Latin America and now in the U.S. hip and irreverent culturally relevant GSN, the Network for Games – The EWTN Español offers family-oriented, programming. only U.S. TV network dedicated to spiritual-growth programming from a game-related programming. TuTv – A joint venture between Grupo Catholic point of view. Televisa and Univisión, offers Spanish Gemstar-TV Guide – Includes the TV Black Entertainment Television – language channels that include De Guide Channel, a television Includes BET, BET Jazz and BET Película, De Película Clásico and entertainment and program guide Gospel. Telehit. network, as well as TVG Network, the Black Family Channel – Entertainment, premier live interactive horseracing Canal SUR – The unique source for sports, informational, and inspirational network. news broadcasts from Mexico or programming for African-American and Central or South America or the HDNet – The first national television urban families. Caribbean. network broadcasting all of its TV One – Offers a broad range of programming in high definition, including TVE Internacional – The No. 1 lifestyle and entertainment-oriented original series, sports and licensed network from one of the biggest original programming, classic series, programming. Also includes HDNet Spanish-language media companies. movies, fashion and music that focus on Movies, offering a commercial-free Features award-winning, high-quality African American themes, issues, culture schedule of full-length feature films. programming including dramas, and politics. comedies, Spanish-language films, kids programming and news. The America Channel – Programs will explore and celebrate America, its Infinito – Infinito is the only Spanish communities and heroes. language channel that reveals the unknown, the unexpected and the The Sundance Channel – Sundance most unexplored territories of Channel offers audiences a diverse and knowledge. engaging selection of films, documentaries and original programs, all Cine Latino – The complete movie uncut and commercial-free. network with the most Spanish- language movies of any channel. BlackBelt TV – 24-hour martial arts March 17, 2006 action-entertainment cable network.

ATTACHMENT B Verizon FiOS TV

VVIDEIDEOO CCHHOOIICCEE FFOORR CCOONNSUSUMERMERSS

Verizon Wants to Bring Video Choice to Consumers The FCC Should Act to Encourage Innovation Without Unnecessary Delays. In 2004, Verizon began a massive upgrade of its territory in Texas due to statewide, streamlined network to offer fiber to the premises (FTTP), an franchising legislation. To put that in perspective, all-fiber network with sufficient capacity to meet Verizon estimates that it will need as many as consumers’ voice, data, and video 3,500 franchises to provide video services. communications needs for decades to come. By Verizon’s FiOS TV has made a competitive the end of 2005, Verizon passed three million splash. FiOS TV is more than cable. FiOS TV homes and businesses with FTTP in almost 800 provides consumers with advanced features communities spread out over 16 states. Verizon made possible by its fiber network and its state-of- plans to double this number in 2006 to six million, the-art Internet Protocol (IP) Platform. Customers and expects to continue this deployment over the can currently receive nearly 400 digital video and next several years. music channels, more than 20 high definition The customers currently served by Verizon’s channels, and 2,000 video-on-demand titles. And FTTP can receive voice service and Verizon’s Verizon’s lead offer is competitively priced at FiOS broadband data services – with download $39.95 per month. speeds currently ranging from 5 to 30 megabits-

per-second. Starting last September in Keller,

Texas, Verizon also began offering its FiOS TV

video services in some communities where it has

been awarded a video franchise.

So far, Verizon has obtained 40 local cable In areas where FiOS TV is now available, franchises for FiOS TV from Local Franchising incumbent cable operators have offered Authorities (LFAs) in California, Delaware, Florida, price cuts of 28 to 42%

Maryland, Massachusetts, New York, Source: Bank of America Equity Research, Pennsylvania, and Virginia. In addition, Verizon Battle for the Bundle, 1/23/06

has franchise agreements for much of its service The Competitive Response Franchising Impedes Entry

As would be expected, competition has led to While Verizon’s successes in bringing FiOS TV to swift and substantial benefits for all customers in market are important and show the consumer the newly competitive markets where FiOS TV is benefits of, and desire for, wireline video available. In areas where FiOS TV is now competition, they have to be viewed in light of available, incumbent cable operators have offered Verizon’s overall experience navigating the local price cuts of 28-42 percent, although they franchising process. generally have “not actively advertised” these Data collected as of March 28, 2006 discounts or made them available to areas not demonstrates that: served by FiOS TV.

“(Verizon) already appears to have ƒ With respect to the 46 negotiations (outside of triggered a price war in the region. The Texas) that were ongoing as of December 28, local cable operator, Charter 2004 – Verizon had received only 6 Communications Inc., has responded to franchises, and three of those six took 15 the upcoming threat by offering attractive months or more to complete. In other words, premiums. Typically, Charter charges well over 85 percent of those negotiations about $100 a month for high-speed Internet pending 15 months ago were not complete, service combined with its top TV package and over 90 percent took at least 15 months of about 240 digital channels. Since

Verizon launched Internet service on its or more. fiber-optic network in Keller, Charter has ƒ Similarly, of the 113 negotiations that were been offering the two services to new customers in that area for $50 a month…” ongoing as of March 28, 2005, only 10

Peter Grant, “Getting your MTV From the Phone Company,” franchises had been granted. In other words, The Wall Street Journal, 9/21/2005 well over 90 percent of the negotiations

pending a year ago were not complete. Even with the incumbent’s price cut, in the first six months that FiOS TV service was available, 30 percent of homes in Keller, Texas opted to subscribe to FiOS TV. Steps to Foster Competition Franchise Facts As an initial matter, Verizon has made it very clear

ƒ Verizon estimates that it will need that it supports several legitimate local between 2,000 and 3,500 franchises. government interests. Verizon has committed to

To date, Verizon has a total of 40 paying franchise fees and providing PEG channel franchises in addition to authority it was given to provide service throughout the capacity consistent with the Cable Act’s state of Texas. provisions, and has agreed that it should be subject to the same prohibition on economic ƒ Franchise negotiations are underway in more than 300 jurisdictions in 13 states. “redlining” that applies to cable operators.

If all were approved, Verizon could offer Verizon also agrees that local governments video services to approximately 4.3 should retain authority to manage public rights-of- million households. way, and Verizon will work with them in that ƒ Verizon has been engaged in the regard, as it has always done. Consistent with franchising process now for almost two these goals, however, the Commission should years. To date, our experience suggests that: address a number of persistent problems with the franchising process that serve no legitimate ¾ In a limited number of cases we purpose and that prevent video choice. secure a franchise in 6 months. ¾ In most cases the process lasts 1. The FCC should adopt rules that prevent more than 15 months. unnecessary delay in the awarding of competitive ¾ Counting pre-negotiation franchises. As explained above, most franchise preparations and discussions, which are required for each negotiations last more than 15 months, and the community, the entire process entire process often takes 18-24 months. The

often takes 18 – 24 months. Commission should put a stop to perpetual delays – whether caused by inattentiveness, interference by incumbents, or a franchising authority’s efforts The FCC’s Authority to force an applicant to agree to unreasonable terms – by recognizing that any local or state The FCC has the authority to adopt rules to procedures that result in a delay of longer than 4 interpret and enforce the provisions of the Cable months are unreasonable and by permitting Act, and to preempt State or local laws that are competitive providers to begin offering service contrary to federal law. As the Commission itself (while continuing negotiations with local officials tentatively concluded in the Notice of Proposed towards a final franchise) where local authorities Rulemaking, it has the authority to implement have not granted or denied a franchise within that Section 621(a)(1) of the Cable Act. This section time period. prevents Local Franchise Authorities (LFAs) from 2. The FCC should clarify that unreasonable and unreasonably refusing to award competitive anti-competitive build-out requirements are a franchises. significant barrier to entry. For example, even though Verizon typically upgrades its network on a wire center basis and provides FTTP throughout permitted to make of a new entrant, and the the area served by the wire center, some Commission should enforce those limitations. franchising authorities seek to require it to provide video services to other areas not served by the 5. Citing their authority with respect to wire center. And some authorities have even “institutional networks,” some LFAs make as a sought to require Verizon to offer video services condition of franchise approval that the to households completely outside of its telephone competitive entrant construct broadband data service area in places where it has no facilities. networks for a municipality, or offer free data The Commission should declare that such services to the municipality or to other people or requirements are inconsistent with the Cable Act organizations selected by the LFA. The and should confirm that a new entrant may define Commission should confirm that these demands its own franchise area, as long as it does so in a go well beyond what the Cable Act permits and manner that is reasonable and consistent with the are prohibited. Act. When a provider agrees to build-out the area 6. Some cable companies have argued that LFAs served by a wire center, that should be can impose unreasonable or unlawful conditions presumptively reasonable, even if that area does because of so-called “level playing field” not correspond to an incumbent’s franchise area requirements, which require a new entrant to or to the LFA’s jurisdictional boundaries. accept any agreement that a monopoly incumbent

3. The FCC should confirm that demands for fees has accepted. Many incumbents and some LFAs or concessions beyond those permitted by the cite these protectionist rules to justify imposing Cable Act unreasonably burden competitive entry additional costs and requirements on new and should preempt any attempt by an LFA to entrants. The Commission should recognize that impose such fees and concessions that are in these rules cannot be used to change the excess of the 5% franchise fee limitation. This character of an otherwise unlawful demand. The must include many of the demands for in-kind Commission must preempt these monopolist- contributions that LFAs frequently make of a protection requirements if they unreasonably franchise applicant, except to the extent those burden competitive entry or otherwise would demands fall within one of the narrow exceptions impose conditions on a new entrant that are to the “franchise fee” definition. contrary to what the Cable Act permits.

4. As mentioned above, Verizon will provide 7. Finally, the Commission should confirm that reasonable capacity for PEG channels designated local assertions of regulatory control over non- by LFAs. The Commission should confirm, cable services or facilities as a condition of however, that the Cable Act prohibits many of the franchise approval are barred. For example, other demands that some LFAs attribute to “PEG some LFAs have demanded that, as a condition support” -- such as the 3 percent “PEG fee” that of receiving a franchise, Verizon pay additional some LFAs demand on top of the 5 percent fees, or submit to other regulatory control, over franchise fee. The Cable Act is very specific in the telephone and data services provided over the types of PEG demands that an LFA is FTTP. Such demands are contrary to federal law. May 10, 2006

ATTACHMENT C Verizon’s Recommendations for Streamlining the Video Franchising Process

(1) Prohibit Unreasonable Delays in the Granting of a Competitive Franchise

• Establish a four month deadline. o Four months is an appropriate maximum period of time by which a local franchising authority (LFA) should be required to either grant or deny a franchise. o If an LFA fails to either grant or deny a franchise within four months of the initiation of negotiations, the new entrant should be permitted to begin offering video service to customers (although negotiations towards a final franchise with the LFA could continue after that time).

(2) Prohibit the Imposition of Unreasonable Build-Out Requirements

• Permit competitive providers to define their own franchise areas, provided that such areas are consistent with the Cable Act. o Under the Cable Act, a franchise area does not have to be coextensive with an LFA’s jurisdictional boundaries. o Wire centers– the basis on which Verizon upgrades its network to fiber – do not correspond to LFA boundaries, but do constitute a reasonable service area, and designation of such an area should be considered presumptively reasonable.

(3) Prohibit the Imposition of Unreasonable Fees as a Condition for Granting a Franchise

• Confirm that any demands of value or consideration by an LFA – whether denominated as “application fees,” “acceptance fees,” “consultants’ fees” or otherwise – constitute “franchise fees” and should be counted towards the 5 percent annual cap on franchise fees, unless within specific exception. o Any fees or demands of value that are not included in the 5 percent cap and do not fit within the statutory exceptions to the 5 percent cap are contrary to the Cable Act. o “PEG support” counts as a franchise fee, except for reasonable support for on-going capital costs to be incurred for PEG access facilities if the provider volunteers to provide such support.

(4) Confirm that LFAs do not have broad new authority over the construction, placement and operation of Verizon’s mixed-use fiber optic network once video signals are transmitted over that network.

• Verizon deploys its network pursuant to its independent authority as a telecommunications carrier

ATTACHMENT D Town of Hempstead, New York

Num Incorporated Vlllaaes 1 Atlantic Beach 2 Bellerose 3 Cedarhurst 4 East Rockawa. 5 Floral Park 6 Freeport 7 Garden City 8 Hempstead Suffolk County 9 He,,"etl Bay Park 10 He,,"ell Harbor 11 He,,"ell Neck 12 Island Park 13 Lawrence 14 Lvnbrook 15 Malverne 16 New Hyde Park 17 Rockville Centre 18 South Floral Park 19 Stewart Manor 20 Valley stream 21 Woodsburgh

Queens County

\lerizon Wirecenters (multi-colors) •_.... L.. ": LFA Boundary D Incorporated Villages o 1.5 3 6 [:J] County Boundary IMiles

May 2006 - V2