Tuesday, July 29, 2008

Verizon Fios license agreement

Zalco property manager Dennis Freeman sent me a copy of the Westmoreland Terrace Condos' license agreement with Verizon for the installation of fiber optic network facilities. Some important lines from the license:
The Association has the authority to grant and does hereby grant to Verizon during the term hereof the non-exclusive right and license to construct, install, operate and maintain its facilities at the Buildings and to deliver its services to the residents of the Buildings. ...Licensor understands that Verizon’s obligation to furnish service to occupants in the Buildings is contingent upon Licensor allowing Verizon to maintain its fiber optic network facilities on the property and in the Buildings. However, at any time after the fifth anniversary of the date of this Agreement, Licensor may, upon 120 days’ prior written notice to Verizon, terminate this Agreement.

I don't see any competitive risk with this contract. In particular, if Arlington County or some other entity wants to connect Westmoreland Terrace to an alternate fiber network, Westmoreland appears to have retained the right to allow them to do so. Prospects for alternate fiber networks don't look good right now. But in any case, I'm happy that Westmoreland hasn't legally locked itself into a single fiber-optic network provider.

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