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jsm1234

@optonline.net

Fairpoint can do fiber in Vermont and here is how...

This could be a great example for all rural areas facing similar financial obstacles.

Fairpoint & its customers would agreement with the government to do the following, possibly with some federal support as well. However, unlike Fairpoint asking for the support, the ones looking to be part of a fiber network (aka, the customer) would.

What Fairpoint would get: A statewide Video Franchise for at least 10 years & the fiber customers exclusive to them.

What customers would get: FIOS like, fiber optic service.

Customers would purchase the fiber just to the curb (the curb referring to the central point of hand-off for, say, 25-50 homes).

Fairpoint would build and maintain the internal network including the VHO and fiber just to the curb. The build-out arrangement for Fairpoint (another words, where they build first) would be completely up to them. It would seem likely, if they had to deploy remote sites cause fiber runs would be too far, they would probably be planned later.

Fairpoint would maintain a site which informs more than just which town they are adding on. Customers would add their physical address and either and a phone number as a contact. When a FTTC solution is in place serving their home, they would be contacted. They would then purchase fiber into their home, business or main unit within a business (example: a bungalow colony where many units may be coaxed from one main specific building). This may call for a multiple dwelling unit MDU type unit.

Not only would they only pay 50% for all services for the first 24 months of service when all services are purchased (aka: the triple play package) but for rebuilding the infrastructure in america, they could both write the costs off on their local and federal taxes. However, where they pay only 50% for the services, this is effectively selling their investment back to Fairpoint. After 2 years, the fiber becomes Fairpoint's free and clear but they must maintain it but they can use it as they like. The selection or selections to which brand and type of fiber that must be purchased would be chosen by Fairpoint.

For instance, suppose 12 families buy a fiber umbilical, after 2 years of service delivery over it, Fairpoint owns the fiber. They find that of those 12 family's, 10 are only up for the summer and 2 return in the winter. Suppose they futher find that of the 2 families that returned, their fiber is damaged, Fairpoint, since the fibers would be theirs, can choose to use umbilicals from other homes which they are still on vacation giving them time to fix those issues.

Please, please consider this idea.. People on vacation or living in rural areas should have just as much right to technology as people who live in or near the cities. Also, this will keep electronics sales healthy in rural areas as well. This should be a model for other areas facing similar obstacles.



mouseferatu
Too many cats, Too many mice
Premium,MVM
join:2004-03-16
Im not sure
kudos:3

That is an ambitious and interesting plan that might well pick up a number of folks who are currently left out.

It seems dubious to me as a current fiber customer, though, in the sense that FairPoint can not deliver anything but HSI on their existing fiber network here, and seem to have a significant problem sorting out how to keep it up and running.

The thought of some kind of a triple play package seems so unlikely... we have semi-functional cable TV as the only game in town, and the powers that be seem content to leave it that way.

I do know that I would not put any personal investment into FairPoint access until they get their current assets organized and in consistent working order.
--
"Do not meddle in the affairs of dragons, for thou art crispy and good with catsup."



jsm1234

@optonline.net

I think this would be a big win for Fairpoint; not only would it set a precedent that a smaller company can put together a FIOS equivalent network but in one of the hardest areas to launch it.

There has been the promise from the beginning that everyone from the most rural to the most urban would have what was said to be tomorrows information superhighway, when I think of that term, I think of FIOS or a FIOS like network.

There is some alterations to the original suggestion though.. here's how I see it happening..

1)
Vermont would grant Fairpoint a 10 year video statewide franchise, Fairpoint would purchase a video head end setup. They would also ask various banks to open up a new secured loan program to front the cost of the fiber from the FTTC (fiber to the curb) location to the FTTH (fiber to the house) location as well as the battery backed up ONT (or MDU where applicable) as mentioned below.

2)
People would put in orders for various services in different areas across the state, Fairpoint would decide what areas they will offer the service first.

3)
The way it would work is the customer would sign up for 2 years of service with Fairpoint (the triple-play) will give them back their investment the fastest. Though you are paying for a fiber, what the customer does get is the promise that when they look for service in their home, it will be turned on in a reasonable fashion and that there will be one reserved for them; it doesn't mean they will get the same fiber they bought (for ex: joe at 1 z ave & john at 2 z ave buy a fiber, even if joe only stays thru the summer and john only stays in the winter, they both must pay for their fibers. One of them may be bad at any one given time and left that way; What Fairpoint would promise is when you are there, you have a live fiber and service).

A special secured bank loan would be offered to customers to be paid back within 10 years with no pre-payment penalty. Suppose the total cost was $2,000, the payment could be as low as $15/mo for the customer. If not paid back within 5 years because service had never started, Fairpoint would assume a 20% responsibility per affected fiber much like the way PMI works for mortgages. This insures that its in the best interest of Fairpoint to get it all working. An escrow account would be set up to cover the costs at the customers end. Fairpoint would advise the current cost, pick the brand & type of fiber and/or equipment & arrange its installation (since, after all they have to maintain it and ensure you continue to get service).

4)
Fairpoint could turn on service there at any time but would commit to installing and turning up the services as soon as at least 10% of the people in that area have signed up for installation. Fairpoint would put together the internal network including their Video Head End and any other network elements as well as the (fiber to the curb) FTTC cross box and connect the purchased hand-off fiber as each customer gets turned on, they would also pay for the set-top boxes as they are needed & the voip router.

5)
Once service is up and working, every even month, you pay nothing. (ie: triple play. mo 1:$95, mo 2:$0, mo 3:$95., mo 4:$0, but note; regardless of where you left off, if you have seasonal service before a free month and you restart it, you will start your first month billed.). Once the (every other month discount) fully subsidizes the cost of the fiber, that fiber would exclusively belong to Fairpoint.

In the case of a small business with service in same name but where boxes are not necessarily in the same building (ex: bungalow colony), Fairpoint will support 1 ONT for up to 12 boxes and will bill separately such as, John Doe-Unit 1A, John Doe-Unit 1B, John Doe Unit 2A, etc. The labels would be chosen by John Doe during setup but all the bills would be sent to him.