Hastings Board Approves Long-Awaited Agreement with Verizon

After years of prolonged negotiations, frustration and ultimate disappointment, the Hastings Board of Trustees finally approved a franchise agreement with Verizon last night that would no longer make Cablevision the sole cable provider in the village. 

Verizon FiOS TV and other Verizon packages that have been available to residents of Greenburgh, Tarrytown, Ardsley and Irvington since 2006 may become available in Hastings as early as the end of summer.

"Having the choice to switch cable companies is something Hastings residents have been waiting a long time for," said Mayor Peter Swiderski moments before the board voted unanimously in favor of Verizon's proposal.

The terms of the agreement, however, are less than ideal for the village and certainly less favorable than the terms would have been had the village signed with Verizon in 2007.

"I am not altogether happy with the terms of the agreement—I wish they could be what they were two years ago," said Trustee Meg Walker. "But ultimately I think it is the right way to go."

Under the franchise agreement signed yesterday, the Village of Hastings will receive a $25,000 advance for their three public, educational and government (PEG) channels, which the village will repay over a period of approximately four to five years through a monthly subscriber charge of 55 cents.  Once the full amount has been recouped, the subscriber charge will go directly to the village to fund camera and video equipment, Swiderski said.

But Cablevision government affairs director Robert Hoch disagreed with the mayor's calculations.

"For the village to begin benefiting from the subscriber fees within 15 years, more than 25 percent of customers would need to switch to FiOS," Hoch said. "It is unprecedented for that many people to switch to Verizon."

Also written into the agreement is a stipulation that Verizon would waive the right to offset franchise taxes against their existing taxes, something which could cost the village considerable funds. 

And the agreement will also allow Hastings schools to broadcast directly to Verizon subscribers over the access channels from in-school camera locations.

How the agreement will affect general subscribers, though, Swiderski said, was based solely upon having the opportunity to choose.

"I am not sure that Verizon's penetration can bring lower prices for subscribers," Swiderski said to Patch. "But at least it gives residents the chance to change when they get frustrated with their current provider. If there truly were a clear superiority [between Verizon and Cablevision] there would be a clear divide in the market; but there isn't."

Swiderski doubts though that Cablevision rates will change due to Verizon's presence in Hastings.

"We are a village of only 3,000 subscribers; Cablevision has set rates for the area that it probably won't change just for us," he said.

The next step in the approval process is that Verizon must send the approved agreement to the state Public Service Commission (PSC) in June, showing them that the two franchises have a "Level Playing Field," or that what the village charges them is competitively neutral.

"Basically a Level Playing Field means that a franchise agreement can't favor one franchise over another," Swiderski said. 

John Figliozzi, a representative from the Public Service Commission spoke before the mayor and board of trustees to warn them that franchise agreements "can be a contentious process." He added, "But we are very much committed to allowing for fair, unfettered competition."

Swiderski said he was almost certain Cablevision would try to take legal action against the Village's agreement with Verizon—"They will try to whack us," he said—but does not foresee the PCP siding with Cablevision.

"The only thing a hearing is likely to result in is a slowing of the process," Swiderski said.

Despite the board's resolve, residents such as Bob Perlstein, chairman of the Hastings Cable Committee, spoke vehemently in opposition to the agreement with Verizon.

"I am left with the impression that by accepting this, we are cannibalizing the difficult-to-achieve agreement we have with Cablevision," Perlstein said.  "It seems that you are adjusting facts to reach a conclusion you want to reach." 

Although arguments continue, Swiderski said the most direct catalyst for last night's "yes," vote was Verizon's recently stated initiative to discontinue expanding its franchise map in favor of elaborating on the infrastructures of areas in which it already exists.

"I saw our window of opportunity to subscribe to Verizon closing for the next five to 10 years," Swiderski said. "Frankly, the agreement may not be perfect, but it is better than having to wait that long."