Montgomery County, Maryland, today filed court papers in an effort to maintain the status quo that protects the local cable television monopoly from competition and prevents Verizon from offering its FiOS TV to county residents. Verizon, which currently is offering the fiber-optic-powered FiOS TV to consumers in Howard County and much of Northern Virginia, filed a federal lawsuit on June 29 against Montgomery County. Verizon asked the U.S. District Court for the District of Maryland to require the county to negotiate a lawful franchise with the company. The following statement should be attributed to John P. Frantz, Verizon vice president and associate general counsel, who is leading the company's legal team on the case.

"Montgomery County today made it clear it will fight to maintain the unlawful rules that protect the local cable monopoly from much-needed competition. The losers are Montgomery County citizens, who will continue to lose more than $725,000 a month in savings as a result of the county's intransigent position.

"Meanwhile, consumers in neighboring Howard County and much of Northern Virginia already are benefiting from their elected officials' consumer-focused actions. Verizon has struck franchise agreements with more than 100 jurisdictions across the country - 14 in the Washington metropolitan area alone.

"The county's claims that Verizon has not filed for a formal franchise application belie the fact that county officials - when informed by Verizon negotiators on May 19, 2005, that the company had begun preparing a formal franchise application - asked Verizon to wait until they had approved the principal terms of a franchise agreement before we did so.

"In addition, no one on Verizon's negotiating team ever heard Montgomery County suggest the company accept a franchise offer 'substantially similar' to one reached with Fairfax County, Virginia. And the offer never was made in writing to Verizon.

"In fact, the proposed agreement Verizon submitted to Montgomery County was based on our Fairfax County agreement. Montgomery County rejected it.

"The public is solidly behind our effort to bring choice and competition to Montgomery County. We have received dozens of e-mails and letters of support from county residents who support our efforts and want choice. In addition, online commentators overwhelmingly are calling for increased competition and action by the county to allow Verizon to provide that competition."