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DC, Verizon agree to new $51M deal
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That the District needs the new deal, however, confirms its $100 million internal fiber optic network, called DC-NET, is not being expanded into government facilities as quickly as its architects would have hoped.
“We’re not just going to magically get rid of all Verizon lines, because DC-Net is not in every government building,” said Vivek Kundra, the District chief technology officer. “We realize we will be using a portion of Verizon services no matter how aggressively we push forward with DC-NET.”
D.C. and Verizon came to virtual blows in 2005 over millions in unpaid bills and other issues. At one point, Verizon threatened to cut off the city’s phone service, leading to emergency court appearances and nasty rhetoric between the parties.
The consequences of the dispute were costly: Verizon refused to renew a preferred contract with the District, forcing it to pay standard rates that increased the city’s phone bills by about $4 million a year.
“I’m not interested in history,” Kundra said. “This is ridiculous, the way we structured our contract, because that’s not how they’re structured in other parts of the country.”
Verizon spokesman Harry Mitchell called the D.C. government a “valued customer.”
“We have worked on our relationship with this customer over the past several years, and we’ll continue to work at the relationship,” Mitchell said.
The new deal for basic phone and data services will save the District $2 million to $4 million a year, Kundra said.
Launched five years ago, DC-NET was designed to move the city away from Verizon, linking every government facility to reliable voice, data and video service on a cost-effective internal fiber-optic network. Despite promises of millions in savings, the price of telephone service has climbed from roughly $24 million in fiscal 2004 to an estimated $32.5 million in fiscal 2008.
Kundra laid off dozens of DC-NET contractors earlier this year, saving an estimated $263,000 a month.
Comments from Examiner Readers
2:15 PM MST on Fri., Jan. 2, 2009 re: "Verizon billing error being probed; credits to come soon"
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10:13 AM MST on Wed., Aug. 13, 2008
re: "Verizon, union agree on new contract, avoid strike"
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8:30 PM MST on Thu., Aug. 7, 2008
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6:05 AM MST on Mon., Jul. 28, 2008
re: "County helping Verizon FiOS customers get promised TVs"
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9:22 PM MST on Mon., Jul. 14, 2008
re: "District threatens Verizon over lack of FiOS progress"
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9:17 PM MST on Mon., Jul. 14, 2008
re: "District threatens Verizon over lack of FiOS progress"
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8:03 AM MST on Tue., Jul. 8, 2008
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5:40 PM MST on Mon., Jul. 7, 2008
re: "District threatens Verizon over lack of FiOS progress"
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10:23 AM MST on Mon., Jul. 7, 2008
re: "District threatens Verizon over lack of FiOS progress"
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Examiner Reader said:
I live on Fort Belvoir, and ordered a FIOS package 9 months ago and have yet to receive a correct bill. They over Charge, then it takes two hour on the phone when you get connected and then when you don't get thru they take your information and tell you they will call back in 24 to 72 hours but never due. This is the worst company ever for customer service. Verizon flat out sucks,and there rented equipment is junk (STB and router).
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Examiner Reader said:
CWA is so two-faced, you support The Employee Free Choice Act yet your going to force me, a VZB employee, into the union and force me to pay dues. I did not want or need a union to get to the position I'm in. I worked hard to get here and don't need some lazy union guy wanting my job bumping me becuse he worked in Verizon longer. I will not pay union dues and will start a class action lawsuit naming Verizon and CWA if one cent of my pay is taken without my consent.
11 agree | 4 disagree
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Jerri said:
Verizon is not jerking anyone around when it comes to FIOS. FIOS has been traditionally been place in surrounding areas and not in major cities. New York and Washington, DC are two of the first large metropolitan areas to get the service. Furthermore, Verizon, Comcast, Cox and any other cable company is required to be approved by all local governments. I am happy that the District has is one of the first major cities to move in this direction. Kudos to all who are involved in making this happen!
3 agree | 9 disagree
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Examiner Reader said:
I signed up for the package last January. I have no complaints about the quality of the service but was jerked around on the free TV. When I signed up, I was told the installer would bring the TV. The installer told me that they would send a letter in 7 - 10 days. After a month, I called the Verizon business center and was told that I was ineligible because I didn't sign up for a 2-year agreement. So I signed up, and was promised a letter real soon. Two months later I called again and was told there were delays but it was coming. Okay, I didn't sign up to get a free TV, but by now this had gone way beyond reason, and had become a QUEST. In early June, I called again and after being passed around and disconnected several times, I was told that I didn't get a letter because I had been "fast tracked" for the TV. I then threatened to cancel on principle and go back to Comcast. I received the TV two days later. Nice TV, but I worked for it.
6 agree | 6 disagree
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Examiner Reader said:
Brian PCF, your thesis is entirely wrong. Take a look at Montgomery County. They are quite the nanny state to the point that they even decide which alcohol brands you are allowed to buy! So much for consumers "being in control". At any rate, Montgomery County customers were among the first to get FIOS service even though Montgomery County plays an active role in the affairs of its citizens and servies.
5 agree | 5 disagree
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Examiner Reader said:
I just noticed that the Jefferson at Capitol Yard Apartments (Eye Street SE) claim to be wired for FIOS. However, being wired doesn't necessarily mean that there is a live FIOS connection available yet. If anyone knows someone living at the Jefferson, maybe they could chime in.
3 agree | 5 disagree
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Brian PCF said:
When did any government get the right to demand service from anyone? Aren't consumers supposed to be in control of the services they get? Shockingly enough, places like MD and VA where the governments are not as grotesquely involved in every aspect of citizens lives, they already have FIOS (and lower taxes, and less gun violence).
5 agree | 7 disagree
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DC John said:
Verizon is frankly just jerking around its DC customers. I live a half block from the immense central office on the corners of 14th and R Streets NW. I cannot get an answer from ANYONE in the company as to when I can expect FIOS.
5 agree | 6 disagree
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Examiner Reader said:
The Verizon installers would need combat pay to work in the District.
12 agree | 11 disagree
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