Hampton Council Briefed on Verizon Franchise; Staff Says Ordinance Could Let Service Start July 15

City staff and Verizon representatives gave Hampton City Council a briefing on proposed telecommunications and cable franchise agreements from Verizon Virginia Inc., while warning that state law gives Verizon an option to start service under a statutory ordinance unless a negotiated agreement is adopted.

John Eagle, who led the staff presentation, described the company’s Fios buildout as "critical infrastructure" and said the negotiated agreements would secure community benefits that are not guaranteed under a bare ordinance franchise. "We have the ability to add additional PEG channels…they will provide free service to each of our public buildings," Eagle said. Staff said Verizon provided notice on June 15, which under state law would allow the company to begin offering service 30 days later unless a negotiated franchise is in place.

Verizon’s government‑relations manager Laura Barnes told council she has discussed the community’s request to carry the NASA channel with Verizon’s channel‑lineup staff but would not guarantee a start date. "I can't promise you today and say, Okay, you know, it's guaranteed...we are looking at it, in 2009," she said. Verizon field representative Wayne Hixenbaugh said the network is already under construction and that the company is "deploying roughly 40,000 feet of cable a month" in Hampton.

Outside counsel Sean Stokes and staff advised council that the Virginia law limits local bargaining power and that deferral could mean the city would only have the minimal terms contained in an ordinance cable franchise. Stokes noted federal limits on dictating programming and cautioned about First Amendment issues when discussing channel mandates. Staff said the negotiated package includes a 5% franchise fee (to the city’s arts/Excel fund), an additional 1.5% PEG fee to support local public/education/government channels, carriage of PEG channels, and free service to public buildings — elements they argued are worth securing through a negotiated agreement.

Council members pressed staff and Verizon on buildout timelines and equity of coverage. Staff said Verizon’s plan targets two wire centers for full buildout within three years, a 65% penetration of homes within seven years and 80% within ten years, and that state law sets thresholds (for example, a minimum density such as 25 units per mile) that affect where service must be provided. Council members asked whether the terms would leave less-profitable areas underserved; staff and Verizon representatives said the technical layout tied to wiring centers explains initial coverage choices and that the company had no stated intention to exclude low‑income areas within those wire centers.

The briefing closed with council members weighing whether to defer action to try to press Verizon on programming and coverage, with staff cautioning that deferral would not prevent Verizon from exercising the ordinance option. No formal vote was recorded in the transcript of the evening briefing; staff said the issue remained on the agenda for later action.