Tag: "telephone"

Posted June 8, 2012 by Christopher Mitchell

Monticello has been all over the muni broadband news lately, in the wake of a letter it sent to bondholders [pdf] alerting them that the City would no longer make up the difference between the revenues produced by the system and the debt payments. This came shortly after the company managing the network decided to step down.

Over the next year, the reserve fund will make up the difference while the City and bondholders come to some sort of an agreement.

The Star Tribune today published a good synopsis of the situation:

City administrator Jeff O'Neill said that the city has no intention of abandoning FiberNet's 1,700 customers, including about 130 businesses.

"This system isn't going anywhere," he said. "We're not going out of business."

Despite the problems, he said the city has one of the fastest Internet systems in the country that has driven down prices and improved services by providing competition.

The article also notes that prior to the City-owned network, the telephone company (TDS) provided very poor DSL service that was harming area businesses with slow and very unreliabile phone and broadband services. Without FiberNet Monticello, we don't know how many businesses would have been forced to relocate to be competitive in the digital economy.

We decided to dig a little deeper to get a sense of what Monticello has received for its investment and difficulty. We previously examined the prices charged by Charter cable in town and found that households taking that deal were saving $1000/year.

monticello-goodbadugly_0.jpg

We also noted that Charter was almost certainly engaging in predatory pricing. After talking with other networks, we would guess that Charter is losing between $30 and $50 (conservatively) per subscriber per...

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Posted April 24, 2012 by Christopher Mitchell

In most states, telephone companies are required to serve everyone and when there are problems with the service, the state can mandate that the company fix them. But AT&T and ALEC are leading the charge to let these massive companies decide for themselves who should have access to a telephone, taking state regulators out of the loop.

These big companies use several arguments we are well familiar with - that mobile wireless is already available (in many rural areas, it actually is not available) and there is plenty of competition. If only that were the case.

I was thrilled to see David Cay Johnston cover this in a column on Reuters:

AT&T and Verizon, the dominant telephone companies, want to end their 99-year-old universal service obligation known as "provider of last resort." They say universal landline service is a costly and unfair anachronism that is no longer justified because of a competitive market for voice services.

The new rules AT&T and Verizon drafted would enhance profits by letting them serve only the customers they want. Their focus, and that of smaller phone companies that have the same universal service obligation, is on well-populated areas where people can afford profitable packages that combine telephone, Internet and cable television.

What happens when the states hand over authority to these companies? David has an answer:

AT&T and Verizon also want to end state authority to resolve customer complaints, saying the market will punish bad behavior. Tell that to Stefanie Brand.

Brand is New Jersey's ratepayer advocate whose experience trying to get another kind of service - FiOS - demonstrates what happens when market forces are left to punish behavior, she said. Residents of her apartment building wanted to get wired for the fiber optic service (FiOS) in 2008. Residents said, "We want to see your plans before you start drilling holes, and Verizon said, 'We will drill where we want or else, so we're walking,' and they did," Brand told me.

Verizon confirmed that because of the disagreement Brand's building is not wired. And there's nothing Brand can do about it. Verizon reminded me the state Board of Public Utilities no longer has authority to resolve complaints over FiOS.

Better broadband is not just about...

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Posted March 13, 2012 by

The National Rural Assembly, an advocate for America's hinterland, continues to track harmful legislation moving through the Kentucky Legislature. The assembly's Rural Broadband Policy Group in February publicized Senate Bill 135which eliminates the "carrier of last resort" requirement that big telcos provide basic phone basic and 911 service in rural Kentucky (Feb. press release on SB135). The bill's sponsor Senator Paul Hornback attempted to distance the negative publicity of SB 135 by crafting a new Senate Bill 12 with similar language.  SB 12 cleared a Senate panel today to the dismay of opponents.

After June 30, 2013, AT&T and other electing "Incumbent Local Exchange Carriers" (ILECs) would no longer be required to provide basic landline telephone service to all persons in a service area, and rural Kentuckians would no longer be assured of access to reliable basic phone service, including 911-emergency service. This bill would be especially harmful for rural people, because they are more likely to be in areas phone companies would decide not to serve, if given the choice. If the Kentucky bill succeeds, we expect major telephone companies to try similar bills in other states. The Rural Broadband Policy Group thinks that both bills need to be killed. After June 30, 2013, AT&T and other electing "Incumbent Local Exchange Carriers" (ILECs) would no longer be required to provide basic landline telephone service to all persons in a service area, and rural Kentuckians would no longer be assured of access to reliable basic phone service, including 911-emergency service. This bill would be especially harmful for rural people, because they are more likely to be in areas phone companies would decide not to serve, if given the choice. If the Kentucky bill succeeds, we expect major telephone companies to try similar bills in other states.

The Rural Broadband Policy Group thinks that both bills need to be killed. Possible repercussions:

  • Customers left at the mercy of a utility and its affiliated companies to raise the price for basic service in an area where no other competitor exists. 
  • Possible "redlining" of poor and remote communities where providing service is...
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Posted February 28, 2012 by Christopher Mitchell

Kentucky is considering a bill that would significantly change rural telephone service in the state. An editorial examines in issue here. We signed on to a letter opposing the bill, reprinted below:

Dear Senate Standing Committee on Economic Development, Tourism, and Labor:

A harmful bill is before you this week that would cut basic telephone service to rural, low-income and elderly Kentuckians. Senate Bill 135, if approved in your committee, threatens access to what most consider a basic lifeline, including 911-emergency service, for Kentucky’s most vulnerable citizens.

As rural Internet and broadband advocates, we know the importance of having access to all forms of communication, including basic telephone service. Communication is a fundamental human right. Lack of basic telephone service isolates people and denies them the right to communicate. Without basic telephone service, rural people will be further isolated from economic and civic participation, and disconnected from the safety our nation’s vital emergency service network.

You have the power to ensure that all Kentuckians can continue to count on basic telephone service.

SB 135 would allow AT&T, Windstream, Cincinnati Bell, and other telecommunications companies to end their obligation as “carriers of last resort.” A Carrier of Last Resort is a telecommunications carrier that commits (or is required by law) to provide service to any customer in a service area that requests it, even if serving that customer would not be economically viable at prevailing rates.

Carriers of Last Resort are crucial to help people in rural, remote, and poor communities stay connected via basic telephone service. Because they are not profitable under a traditional market framework, these communities are the least desirable to corporations primarily interested in profits. The real tragedy of this bill is to further disadvantage the most vulnerable people in Kentucky by cutting their ability to communicate with their loved ones, elected officials, potential employers, medical providers and the society at large.

As rural constituents, we feel compelled to express our concern over the negative impact that SB 135 will have on rural, remote, and poor communities in Kentucky. Especially at a time when poverty rates are statistically high and jobs are scarce,...

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Posted November 12, 2010 by Christopher Mitchell

Spanish Fork, a well-regarded community broadband network, is now offering triple-play services on its hfc network. Previously, the town was offering broadband and television but recently added telephone after feeling the time was right.

From the article:

John Bowcut, director of Information Systems for Spanish Fork, said 15 percent of homes signed up when told telephone service was available over the cable. The network only used door hangers to advertise at first because it intended to have a slow rollout. Then the service was promoted in the city newsletter.

SFCN's phone rollout was slow for a reason. Small neighborhoods were notified one at a time, which allowed the network to handle the load. Bowcut said they didn't want to open sign-ups citywide and then have to tell people their connection date was three months out. He said the most people had to wait this way was 10 days.

Initially about 1,500 homes signed up for phone service, out of 5,534 homes in Spanish Fork.

The new telephone service runs an economical $14.95 with a variety of features. 75% of the town takes at least one service from the network, perhaps because of the great customer service:

Perrins was a beta tester for the system. He thought going through that process was awesome. They fixed every problem quickly and fine-tuned the network. "It was fun because the employees were so excited and eager to find and fix the problems."

Prior to the telephone rollout, only some 60% of the community took a service from the network, as explained in this article

About 60 percent of Spanish Fork residents already subscribe to SFCN's cable TV and high-speed Internet. The customer appeal of the city-run communications utility is that Spanish Fork provides both the infrastructure and the service -- a practice that was actually outlawed by the Utah Legislature in 2004, though Spanish Fork was grandfathered in.

This means SFCN can cut out any middle-man service provider, which amounts to about $2 million in savings each year, Mayor Wayne Andersen said.

"I think it was a sad day when the state Legislature put the kibosh on that sort of thing," Andersen...

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Posted March 18, 2010 by Christopher Mitchell

In 1999, the city of Spanish Forks in Utah began building a $7.5 million publicly owned cable network to offer broadband and cable television services. Since then, the network has created some $2 million in community savings from the lower rates created by competition. In February of 2009, Spanish Fork Community Network received the "Business of the Month" award from the local Chamber of Commerce.

Last month, they announced that they will be adding telephone services to the network by contracting with a private provider that will actually offer the service.

When most people think of Utah and broadband networks, they think of UTOPIA, the open access network that has had a variety of problems. The Spanish Fork Network has been quick to note their successes (I suspect they are also frequently attacked by the incumbent-loving Utah Taxpayers Association group):

Bowcut gave his budget report and said SFCN had over $400 thousand in retained earnings. "We are not going under."

He also added that they built the network at a time when private providers refused to invest in the community.

Hat tip to FreeUTOPIA for noting these stories.

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