(don¹t expect good cell service says ) Verizon CEO sounds off on Wi-Fi, customer gripes

[David Farber <dave () farber net>]

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From: Dewayne Hendricks <dewayne () warpspeed com>
Reply-To: <dewayne () warpspeed com>
Date: Sat, 16 Apr 2005 22:26:39 -0700
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] Verizon CEO sounds off on Wi-Fi, customer gripes

Verizon CEO sounds off on Wi-Fi, customer gripes
  Seidenberg also explains phone company's reasons for wanting to buy MCI
  - Todd Wallack, Chronicle Staff Writer
  Saturday, April 16, 2005

The head of the country's largest phone company ridiculed San
Francisco's interest in building a municipal Wi-Fi network that is
designed to offer cheap or free Internet service throughout the city.

  "That could be one of the dumbest ideas I've ever heard,'' said Ivan
Seidenberg, chief executive officer of Verizon Communications, during a
meeting with Chronicle editors and writers on Friday. "It sounds like a
good thing, but the trouble is someone will have to design it, someone
will have to upgrade it, someone will have to maintain it and someone
will have to run it."

  Seidenberg said private companies like Verizon, which already run data
networks, are much better positioned than government agencies to offer
high- speed Internet service.

  But Adam Werbach, a member of the San Francisco Public Utilities
Commission, which is in the early stages of considering building a
community Internet network, said Verizon and other phone companies are
just worried about increased competition.

  "It's like Bill Gates ridiculing Linux or Sony saying that Apple
doesn't know anything about the music business," Werbach said.

  During an hourlong interview, Seidenberg also sounded off on mobile
phone complaints, his company's interest in buying MCI and other
topics.

  Seidenberg, for instance, said people often complain about mobile
phone service because they have unrealistic expectations about a
wireless service working everywhere. Verizon Wireless, a joint venture
of Verizon and Vodafone, is the state's largest mobile phone provider.

  "Why in the world would you think your (cell) phone would work in your
house?" he said. "The customer has come to expect so much. They want it
to work in the elevator; they want it to work in the basement."

  Seidenberg said it's not Verizon's responsibility to correct the
misconception by giving out statistics on how often Verizon's service
works inside homes or by distributing more detailed coverage maps,
showing all the possible dead zones. He pointed out that there are five
major wireless networks, none of which works perfectly everywhere.

  Seidenberg also defended the company's stiff cancellation fees and
tighter return policy.

  Last year, the California Public Utilities Commission ordered all
phone companies to give customers 30 days to test a service without
slapping them with hundreds of dollars in early cancellation fees. But
after the PUC suspended the rule a month ago, Verizon shortened its
trial period to 15 days to match its 15-day return policy in other
states.

  "We think there is a deal," he said. "We invest in the business and
have the best service. But when you sign up with us, we'd like you stay
with us."

  Seidenberg also said Verizon is interested in buying MCI, despite its
financial and legal troubles, because of its national Internet network
and lucrative government and corporate contracts. "It would take us
longer to build ourselves," he said.

  Last month, MCI's board accepted Verizon's $7.6 billion takeover
offer, spurning rival Qwest's $8.9 billion bid. So far, Qwest has
refused to give up the fight.

  Seidenberg ridiculed Qwest's offer, noting that Qwest has a market
value of $7 billion, far less than its $8.9 billion bid. By contrast,
Verizon has a market value of $95 billion, reducing doubts that it can
complete the deal. "We're the right answer,'' he said.

  Although Qwest's offer appears much higher on the surface, both
Qwest's and Verizon's offers contain a significant amount of stock. So
if Qwest's stock fell sharply after completing the deal with MCI, its
offer could actually turn out to be lower. Qwest could not be reached
for comment late Friday.

  [snip]

  E-mail Todd Wallack at twallack () sfchronicle com.

  Page C - 1
URL:  
<http://sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/04/
16/BUGJ1C9R091.DTL>

Weblog at: <http://weblog.warpspeed.com>


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