A second wired television choice could soon be available.
SANATOGA PA – Lower Pottsgrove‘s more than 4,100 households may get access to television programming carried by Verizon fiber optic cables within the next five years, under a deal that has yet to be approved by the township Board of Commissioners but for which a Verizon representative said Thursday (Feb. 19, 2009) a “handshake agreement” had been struck.
If accepted by the board, Lower Pottsgrove’s 10-year contract with Verizon may initially earn it $35,000 to $50,000 a year, township Manager Rodney Hawthorne estimated.
Board members entered into executive session Tuesday night, following their regular meeting at the township municipal building, to read through contract details with their solicitor, R. Kurtz Holloway. Commissioners said they probably would vote on the contract, officially known as a franchise agreement, during their March 2 (2009) meeting.
Laying fiber optic cable in Lower Pottsgrove could begin in the second half of this year.
Verizon director of external affairs for Montgomery County, Daniel Reavy, said if the contract was approved the township could expect his company to begin installing its cables during the second half of this year. It will take two to five years, Reavy said, for Verizon’s FiOS-branded television services to reach all homes within Lower Pottsgrove’s 8-square-mile area.
“We think this is terrific news for residents. It gives them true cable choice,” Reavy said, in a reference to Comcast Corp., currently the only local provider of wired television services. Comcast also has a 10-year agreement with the township, and would compete with Verizon for customers.
It’s been about two years since Verizon and the township first discussed the prospect of bringing FiOS here, and the board’s official minutes indicate it’s been 13 months since commissioners authorized Hawthorne to review the company’s proposals and make recommendations on franchise agreement talks. Reavy, who used the handshake metaphor to characterize Verizon’s understanding with Hawthorne, was joined by two other company representatives early during the board’s meeting to answer questions.
Although the agreement is not final until approved, Hawthorne, the commissioners, and Reavy said specifics included:
- Earnings. The township will earn 5 percent of Verizon’s gross annual revenues on the sale of television services only to Lower Pottsgrove residents. If Hawthorne’s estimate of up to $50,000 in earnings is accurate, it values Verizon’s sales here at about $1 million a year. Lower Pottsgrove’s agreement with Comcast also pays 5 percent, and earns it about $150,000 annually, Hawthorne said, valuing Comcast’s sales at about $3 million a year. Reavy said Verizon hopes to capture “at a minimum” 25 to 30 percent of the local market, mostly by trying to eat Comcast’s lunch.
- Signing bonus. Verizon will make a one-time, $6,000 payment to the township within 90 days of the franchise agreement’s signing. Lower Pottsgrove can use this money for any purpose, although Hawthorne said he envisioned spending it on public education efforts.
- Channel access. Verizon would reserve two channels in its spectrum for use by the township or its designees, such as the Pottsgrove School District. Verizon is not supplying a studio or any equipment that could make use of those channels, however.
- “Aggressive” build-out. The sooner Verizon can lay cable, the sooner it can start selling. The company wants to begin quickly, but won’t tell the public in advance which parts of the township will receive FiOS first. “We don’t want to give that advantage to the competition,” Reavy said.
- Enhanced customer dispute resolution. Hawthorne said Verizon would not arbitrarily suspend service to customers involved in disputes over service or payment issues.
Reavy said Verizon already had franchise agreements in place with 50 Montgomery County municipalities, including Limerick and Upper Providence townships and Collegeville and Trappe boroughs. It was still negotiating, he said, with Pottstown and Royersford boroughs.
Related:
Related: (to the Lower Pottsgrove Board of Commissioners’ Feb. 19 meeting):
Photos from Clipart.com
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