[RTC List] Potential Game Changer

[William Van Hefner]

Larry,

Considering Verizon's general lack of interest in making upgrades of ANY
kind to it's local facilities, things really couldn't get all that much
worse for it's customers in rural, Northern California, IMHO. So, I would
have to consider this good news.

As for FiOS, I think it was obvious that Verizon never had any intention
of bringing FiOS to it's subscribers in this part of the state, much as
AT&T has absolutely no plans whatsoever to bring it's FTTH project here.
It would be great if Frontier would consider some sort of FTTH, or even
wireless data service. I don't know much about their wireless services
though.

Frontier started out as an ILEC in New York State, as I recall. They built
a fairly decent fiber network on the East Coast in the 1990's, where the
vast majority of their operations are still located (like Verizon). They
have never really been that competitive as a data carrier East of the
Mississippi though, unlike Verizon. Let's just hope for the best!


-- 
William Van Hefner - President
e-mail: editor at humboldtonline.com
http://www.humboldtonline.com


On Fri, May 15, 2009 10:59 am, Larry Goldberg wrote:
> 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-broa
> dband.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
> --------------------------------------------------------------------------
> ---------
>
>
> 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.
> -------------------------------------------------------------------------
> ---------------------------------
> 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:
>
>