Cutting the copper cord creates minor controversy

Verizon’s decision to remove the copper lines of homes it has connected to its FiOS network is coming under mild fire in the online community for locking customers into more expensive high-speed access options.

The controversy

The email post of a single customer who has complained has now shown up on multiple Web sites and become a point of discussion. At issue is whether Verizon is eliminating possible competition when it removes aerial copper lines from the homes that now have FiOS connections.

The telephone company, which expects to pass three million homes with FiOS this year, is only installing fiber optic lines to the homes of customers who order the service, according to a spokesman, because its technicians are staying busy just keeping up with demand.

“That’s what we will be doing for the foreseeable future,” he said.

Verizon is removing copper lines as it installs fiber “because we can’t afford to operate two networks,” he added. “One of the primary benefits of FiOS is the operational savings.”

Those savings are based in part on eliminating active electronics in the field in favor of passive optics, he said. In addition, fiber is much less expensive to maintain than the aging copper plant.

The massive copper plant

There is also the technical matter of connecting the massive copper plant to a new core network, instead of Verizon’s Central Offices.

There might be competitors out there willing to take Verizon’s copper plant, said industry analyst Daniel Briere of TeleChoice, but it’s not too likely.

“Most of those people would be looking to do WiMAX or something else, that would be easier and cheaper,” he said. “Why use copper in an area where fiber is deployed? At some point, when you’ve built the highway, it’s time to abandon the goat paths.”

The price points

The technology in use won’t affect voice service prices, the Verizon spokesman said. The FiOS data service costs $34.95, in its cheapest version, versus DSL at as low as $14.95 in a promotional offer, but the telephone company isn’t getting complaints from FiOS users who want to go back.

“Our complaints are from people who want to know when they can get FiOS,” he said.

Verizon continues to negotiate with other ISPs to offer wholesale access to its fiber optic network, although it has not announced agreements.

The issue there may be price, Briere said. Competitors don’t expect to get much of a price break from the telcos on their new fiber networks and may not be able to work out a business case as a result.