[RTC List] Potential Game Changer

[Larry Goldberg]

To everyone who's interested in the ARRA/broadband stimulus money  
discussion, this recent development could be a major game changer.   
William Van Hefner sent the press notice yesterday and I see that no  
one really paid much notice.  Today I received the following message  
from one of my mailing lists which I think would be of general interest:

A day after announcing its $5.25 billion acquisition of the remaining  
rural landline business of Verizon, Frontier Communications is  
reporting that it will pursue broadband stimulus funds from the  
federal Recovery Act. In Frontier's press release on the deal,  
Wilderotter states,"With more than 7 million access lines in 27  
states, we will be the largest pure rural communications provider of  
voice, broadband and video services in the U.S. Frontier is committed  
to providing our customers with state-of-the-art technology and  
innovative products."

http://www.stimulatingbroadband.com/2009/05/frontier-gains-immediate-broadband.html

Nice map of where Frontier will be looking to spend gov't money some  
day;
http://2.bp.blogspot.com/_YsFwcBFHCvc/SguYOgouVXI/AAAAAAAAASI/7YlEaxcKMXc/sl600-h/frontier_map.jpg
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First thing - look at the map and you'll appreciate that they control  
all of Del Norte county and a tiny portion of Humboldt Co.

Next - if you read the article, please note the following interesting  
points:

A Game Changer in 14 States
The Frontier acquisition of new operating territories in the 14 states  
is thus a potential game changer for communities in and adjacent to  
those areas that are today "unserved" by broadband facilities. This is  
particularly true given the fact that Verizon executives have repeated  
the carrier's displeasure with the open access strictures of ARRA,  
leading most of us in the community of 'broadband stim' observers to  
conclude that the firm will not apply for federal funds.

Present Federal Rural Telecom Rules of USDA-RUS
For much of the American telecom industry, rural telecom and the  
federal programs that subsidize it is a world unto itself which  
remains arcane if not unfathomable. An understanding of those rules  
however demonstrates the clear advantages that Frontier has gained in  
the highly competitive arena defined by both broadband stimulus funds  
under ARRA, and by existing programs.

Current rules of the Rural Utilities Service (RUS) division of the US  
Department of Agriculture (USDA) state that once a rural telecom  
carrier receives grants or loans for network construction or expansion  
in a designated area, no additional grants or loans may be issued to  
any other communications company for that same rural area.

And finally:
Our Take (StimulatingBroadband.com):
If Frontier can indeed avoid the operational nightmare that has become  
the Fairpoint franchise in New England, the carrier will achieve a  
competitive advantage for broadband stimulus funds, and for associated  
rural telecom federal subsidies, going forward.

State broadband program directors, community broadband advocates, and  
in-region carriers from the 14 states about to be part of the new  
SpinCo entity are well advised to reach out to Frontier.
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In closing, there will be lots of last-minute "surprises" in this  
process, so we should be ready for these developments and prepared to  
adjust our plans accordingly.    LG

On May 14, 2009, at 2:18 AM, William Van Hefner wrote:

> All,
>
> Just thought that I would pass this along. Verizon is obviously not  
> the
> dominant carrier in the state, but it does serve a large number of  
> rural
> areas of Northern California. With the upcoming sale to Frontier, I  
> think
> it's safe to say that Verizon customers in those areas can say  
> goodbye to
> any chance of getting FiOS service.
>
> ############
>
> CHARLESTON, W.Va. (WSAZ) -- Verizon Communications, Inc. announced
> Wednesday plans to sell its landline phone business to Frontier
> Communications.
>
> According to a Verizon spokesperson, Verizon is selling its entire
> landline business in West Virginia, Ohio, and 12 other states  
> (including
> parts of California).
>
> "Our landline business in those states (Charleston as well as more  
> rural
> parts of the states) will become part of Frontier once the  
> transaction is
> approved, which we’re estimating will take about a year," Harry  
> Mitchell
> said. "Verizon Wireless and Verizon Business are not affected by this
> deal."
>
> http://commsxpress.com/globalbandwidth/verizon-sells-landline-business/457/
>
>
>
> -- 
> William Van Hefner - President
> Vantek Communications, Inc.
> e-mail: editor at humboldtonline.com
> http://www.humboldtonline.com
>
>
> _______________________________________________
> List mailing list
> List at redwoodtech.org
> http://redwoodtech.org/mailman/listinfo/list_redwoodtech.org

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