Major indices finish lower amid GE earnings disappointment >>> READ MORE

NYC Sues Verizon Communications Inc. (VZ) Over Unfinished FiOS Project

1 million New Yorkers don't have access to it


NYC has filed a lawsuit against Verizon Communications Inc. (NYSE:VZ) over a project that the company reportedly failed to complete.

NYCThe carrier was tasked by one of the greatest cities in the world to launch a fiber Internet service called FiOS as part of a deal that was inked in 2008. Verizon did not install the Internet service in front of every building, and the company maintains that it was not required to.

NYC has 3.1 million households but the network was only offered to 2.2 million households, leaving nearly a million residents without the FiOS service. The complaint has been filed with the city’s Supreme Court, claiming Verizon is in breach of its obligations and it must complete the project.

The 2008 deal was set to take effect in 2014, when the company’s obligations had to be fulfilled. The agreement read that Verizon had to “pass all households” with its fiber-to-the-premises network by June 30, 2014.

The agreement only mentioned cable television, but the design of the FiOS service was also slated to offer faster Internet because the same fiber would deliver both functionalities.

“This build-out required Verizon to install fiber optic cable—in underground conduit, along above-ground utility poles, or otherwise—in front of (or behind) each residential building,” the city’s complaint says.

NYC added that the company even agreed with this version of the agreement, ensuring that Internet service throughout the city would be quicker.

VZ stock is down 0.4% Tuesday.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC