Mayor Thomas M. Menino is locked in a stubborn standoff with Verizon that’s barred voters from accessing its popular FiOS TV, Internet and phone service and given Comcast a virtual monopoly on Boston’s cable market, mayoral challenger Michael Flaherty charged yesterday.
“Residents suffer and are left on the sidelines because he’s unwilling to bring innovation and technology to Boston,” said Flaherty, accusing Menino of “letting his own opinions get in the way” of a faster, fiber-optic-based alternative to Comcast – a competition that could possibly lead to lower bills for the city’s 165,000 cable subscribers.
“This is a classic example where he wants to grind down the telecommunications industry to satisfy his own thirst for revenue,” Flaherty added.
Menino does not dispute that he has been engaged in a tax fight with Verizon – but said it’s for the benefit of Boston’s bottom line. “They don’t pay taxes to the city at all. They get a free ride. I want them to pay their fair share. And what I’ve got back from the company is, ‘Mayor, back off, I’ll give you FiOS.’ Why should the taxpayers of Boston lose out on new income to our city?” he asked.
The city, along with Newton, battled Verizon in court in 2008, winning the right to tax its poles and wires as real property – providing $2 million in revenue to Boston. State lawmakers in June passed a telecom act that supported much of the court ruling and blocked Verizon from appealing the taxes. But Beacon Hill balked at approving the mayor’s plan to make Verizon pay an estimated $5 million in annual taxes on its switching equipment – a tax other utilities pay.
Verizon has begun installing FiOS in other big cities including Washington, D.C., Philadelphia and New York. FiOS is also available in 103 communities in Massachusetts, including suburban towns such as Melrose, Canton, Newton and Wellesley. But while FiOS ads saturate Boston airwaves, the service is nowhere to be found in the city.
Comcast, which uses older copper wires to deliver cable, phone and Internet products, serves some 150,000 Boston households. RCN serves about 15,000.
Verizon spokesman Philip Santoro denied that its tax battle with Boston soured it from bringing FiOS to the city. “While we oppose new taxes, we would not and have not made a business decision about deploying FiOS based on any single factor,” he said.


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