Verizon Brings Antitrust Suit

By Cameron W. Barr
Washington Post Staff Writer

Friday, June 30, 2006; B06

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/29/AR2006062901966_pf.html


Verizon Communications ratcheted Montgomery County's cable war up a notch 
yesterday by filing a federal lawsuit alleging that the county's franchise 
approval process violates federal communications and antitrust law and the 
First Amendment.

Verizon has been upgrading its fiber-optic network in many parts of the 
United States in part to offer video services that would compete with those 
offered by cable television providers. The company said yesterday that 
Montgomery's regulators have been unusually reluctant to allow Verizon to 
offer such services.

The vast majority of Montgomery's cable customers are served by Comcast; a 
small minority get their cable from RCN, formerly Starpower.

"Montgomery County has used its power to withhold a necessary franchise to 
force Verizon to accede to the county's demands for payments, in-kind 
contributions, and burdensome local regulatory authority -- all of which 
are illegal under federal law," the suit said. Verizon says more than a 
dozen local governments in the Washington region have granted Verizon a 
cable television franchise or are about to do so.

Montgomery County spokeswoman Donna Bigler declined comment because county 
attorneys had not had time to review the complaint, which was filed 
yesterday in U.S. District Court in Greenbelt.

"Montgomery County residents continue to suffer, held hostage to Comcast's 
ever-rising cable rates," said John P. Frantz, Verizon vice president and 
associate general counsel, in a statement. Verizon asserts that its 
competitor has increased rates in the county by more than three times the 
inflation rate since 2000.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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