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Forums » Qwest: Community-Run Fiber 'Harms Consumers' » Xmissions Stance on it
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Utopia In The Hole »
« What's the problem?  
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mcmillan

join:2001-04-15
West Bloomfield, MI
reply to longstreet
Re: Xmissions Stance on it

Thank you for that text.


longstreet

join:2004-11-14
Plano, TX

Too bad Qwest is busy dealing with SEC investigations and high level restructuring - How deep in the whole are they? Oh that's right, their leadership was 'stealing' money from consumers . . .hmm . . .who's costing who ?

Laying fiber is expensive. Part of the reason why Utopia has large bills is Qwest and Comcast's BS actions in the legislature.

I'm going to post a response from the president of XMISSION, the first ISP in utah, of whom I had an account and a 14.4 back in the day :

quote:
UTOPIA is a city fiber-optic network project with high potential for citizens and the Utah economy. UTOPIA seeks to provide a level playing surface for competition of telephone, television, and Internet providers. The project calls for municipalities to construct a "digital road" to all its citizens and to allow any company to compete for customers on it. City councils of the 18 participating cities have been studying and debating this project for two years. Brigham City, Lindon, Midvale, Tremonton, and West Valley City have voted in favor of UTOPIA while the remaining 13 have not reached a decision yet. Sensing the tide turning against them, UTOPIA opponents Qwest and Comcast are attempting to bypass cities by approaching the state legislature. If passed, Senate Bill 66 would effectively kill UTOPIA and future municipal networks by cutting off the cities' options to fund their birth. As president of XMission, Utah's first Internet Service Provider, I would like to invite all Utahns to join me in the debate over this critical project for our economy.

Some fear that technology is too uncertain to invest in UTOPIA today. In the past decade, computing power has exponentially increased and miniaturized at the same time. The horsepower behind the video games our kids play today would make the nuclear scientist of the nineties envious. Cell phones have shrunk to the point where, next to car keys, they have become the 2nd most cursed misplaced object. XMission started in 1993 on the best communications technology available at the time, 14.4Kbps modems. Now we have the opportunity to run XMission over DSL to residences as fast as the entire T1 connection I purchased for the whole company when it started. It is understandable why the casual observer might think that a network deployed today would be quickly outdated.

Yet fiber optics are unique in their ability to adapt with the advancement of technology. Fiber's advantage comes from the use of a full prism of light where each "color" can send a different stream of information. Differences in "color" are defined by the ability to determine differences in wavelength. As advances in technology divide the light spectrum into smaller and smaller pieces, the information capacity of the fiber continues to multiply to numbers that are hard to comprehend. Equipment exists today to transmit 1.6 terabits (1.6 trillion bits) per second over a single fiber. To put this number in perspective, this amounts to roughly 20 times the current global Internet and telecommunications traffic use. Experimental systems are pushing 25 terabits per second. Where will it end? Your guess is as good as mine. One thing is certain though; a network using fiber may last beyond any of our lifetimes since the electronics on each end of the fiber can be updated as technology progresses. UTOPIA has budgeted for a complete replacement of electronics three times over the course of its 20 year plan.

When the potential of fiber is compared against other technologies such as DSL, cable, satellite, and wireless, these other options can't compare. DSL is already bumping up against the limitations of copper and it is my firm belief that it will be as relevant as a 14.4Kbps modem in another ten years.

Does a home or business need the full bandwidth potential of fiber? My experience with the Internet has shown never ending growth with a constant demand. Back in 1993, I would not have believed it if someone had told me residences would need T1 level speeds today. My opinion is further sobered by the modern demands of the Internet business. As services converge to digital form it makes sense to have one fast conduit for them all. Using a single high-speed conduit is not only more efficient, but it would help reduce the current spider web of lines above our streets. UTOPIA's plan for fiber "rings" would provide superior redundancy against inclement weather such as recent snowstorms, and wayward backhoes.

Recently much has been said about WiMax, the next generation of wireless technology. Qwest has been very public about their plans for WiMax to replace DSL. With a 70 megabit, 30 mile transmission potential, it would seem to make sense. However, if you've ever lost signal on your cell phone you can immediately see the problem with over-the-air networks, interference and obstacles. In addition, the 70 megabits available with WiMax is intended to be shared in a neighborhood instead of being wired directly to your house. WiMax is a terrific accessory for a fiber to the home network, but not a replacement for it.

A broader question concerning UTOPIA is whether government should be in the network business at all. Government is already an inexorable part of telecommunications. Tax payers bought and paid for the 19th century copper network over which Qwest currently maintains control. UTOPIA was conceived largely due to the needs of cities which Qwest has not met. If UTOPIA is not able to proceed building a 21st century network, then the copper network should be taken back from Qwest for they have been a poor steward of this most generous gift. Our modern economy depends upon a strong and robust communications infrastructure. Regardless of who controls the copper network in Utah, is it prudent to base our future upon its antiquated architecture?

Some claim that UTOPIA's business plan is faulty, basing their argument on the failure of many fiber-based telecommunications companies. These companies did not fail due to technology implications, they failed because of bad management and greed. XMission started long before the explosion of the Internet and continues to thrive. Our longevity is a result of being fiscally conservative and not having stock price as a focus, a trait not shared by telecoms and dot-coms who crashed and burned, or by telecoms that are now too bond poor to invest in advanced infrastructure today.

Tax advocates fear that the risk to taxpayers is too high with UTOPIA. They say that if the network fails completely after all the money has been spent and if nobody has subscribed, households would shoulder up to $5.69 each month for 20 years. Qwest and Comcast have both stated they would be gunning for failure of UTOPIA, so they would inevitably launch cut-throat pricing in an attempt to keep customers. Would pricing drop more than $5.69 a month? Do tax advocates believe it is better for captive customers to pay $5.69 in truckloads to our out-of-state telephone and cable overlords, or, would it be better to invest in building in-state infrastructure? I think the money should go to in-state infrastructure.

Lets examine the UTOPIA tax risk. Funds are spent only as the network rolls out. If, after all, households do not choose services on the UTOPIA network, then construction can cease without utilizing the taxpayer guarantee. There would be no need to spend the rest of the invested bonds.

What is more exciting to consider, though, is UTOPIA succeeding. If only four out of 10 households use at least one service, UTOPIA will show a profit, a profit that the cities can apply as they see fit, such as in reducing taxes.

Qwest and Comcast have repeatedly estimated costs in the hundreds of millions of dollars to maintain their Utah infrastructure. If I ran these companies and the government came to me offering to eliminate these maintenance costs, and allowed me to use the network, I would be overjoyed. Hard working employees could be given raises approaching the millions that are currently being paid to executives. Prices could be drastically dropped. Customer satisfaction would go through the roof due to superior reliability. So why did Qwest and Comcast turn down the offer to be providers on UTOPIA? Because they would rather lord over their exclusive networks than share on an equal playing field.

Comcast has experience in killing these movements, and Qwest is reading the manual. One history to read is tricitybroadband.com where Comcast and their telephone cohort SBC used all manner of lies and scare tactics to stop a ballot proposal to build a similar network in Illinois. Supporters spent $3000 to promote the idea and opponents spent $2,000,000 to crush it.

Let me make it clear, UTOPIA is not designed to supplant Qwest and Comcast. In spite of this fact they are using scare tactics right now to enlist independent rural telephone companies in their fight, stating the government is seeking to usurp the rural telcos' jobs. These small companies should be commended; they lay fiber to homes and schools on their own dime and provide excellent service while keeping revenues local. These rural companies have nothing to fear for they are doing their job to the level citizenry expects. I honestly wish they could provide service to the rest of us.

I clearly understand the power of being first in a technology field. Because XMission was first to provide public Internet in Utah, we enjoyed a distinct advantage in getting our name out and establishing a reputation for excellent service. Although the United States as a whole lags behind other developed nations in fiber deployment, there is still time for Utah to advance beyond other states and establish a reputation for having an advanced technological infrastructure. The timing is important for the economy of Utah. Technology jobs are leaving the state in droves, and a fiber network would be an excellent carrot to bring them back. Senate Bill 66 will torpedo UTOPIA if passed. City councils are debating and holding public hearings. If you are dissatisfied with your telephone, television, and Internet options, or simply want to be sure they can provide better services in the years to come, it is time to make your opinion heard.
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