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Forums » Wisconsin Realizes Franchise 'Reform' Was a Con » Yes, this was a total con
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marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

reply to SD6
Re: Yes, this was a total con

The FCC decides now.
The FCC made a rule that franchise buildout requirements have to be waived for new entrants into an established market. The LFA has no choice in that matter. I think at one point the LFA could apply buildout requirements to overbuilders, but that has not been the case since somewhere in the mid 90s.
Beyond that, the LFA still has the authority to establish buildout requirements for the incumbent (and they get very specific) and can specify buildout requirements for an overbuilder, but the overbuilder has an escape clause that if their penetration is below a certain amount the requirements are waived. I cannot remember the FCC cutoff off the top of my head (it may be as low as 20% penetration, but I think it's determined by market share), but most franchise agreements set an even higher bar because they want to encourage overbuilders.
Of course, overbuilders are ridiculously hard to recruit. Even when you wave all the buildout requirements and place a cost share on I-net and similar requirements (you cannot waive those, or the incumbent will have you in court), most overbuilders will not even bother to return your letters. The franchise I worked with would recruit 8-12 overbuilders every year to come overbuild our franchise, and only 1 ever got as far as drafting up a franchise agreement (which they never signed).
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SD6

join:2005-03-26

said by marigolds See Profile :

The FCC decides now.
The FCC made a rule that franchise buildout requirements have to be waived for new entrants into an established market. The LFA has no choice in that matter. I think at one point the LFA could apply buildout requirements to overbuilders, but that has not been the case since somewhere in the mid 90s.
Beyond that, the LFA still has the authority to establish buildout requirements for the incumbent (and they get very specific) and can specify buildout requirements for an overbuilder, but the overbuilder has an escape clause that if their penetration is below a certain amount the requirements are waived. I cannot remember the FCC cutoff off the top of my head (it may be as low as 20% penetration, but I think it's determined by market share), but most franchise agreements set an even higher bar because they want to encourage overbuilders.
Thanks for your reply. Are you referring to the 2007 revision of the regulations? Which part or Rule?


marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

It was before 2007. I stopped serving on the commission I was on in 2005, about the time we wrapped up the last franchise.
And I am pretty sure the rule was in place when I started in 2002.
I think it was actually part of the 1996 telecom act, but I would have to do some research to be certain.

SD6

join:2005-03-26
Thanks, I'll look it up. Why isn't FIOS considered an overbuilder?


marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

It is considered an overbuilder, and is treated that way for franchise purposes. This is part of the reason Verizon had little issue with getting local franchises. FIOS actually is much closer to a overbuilder business plan than an incumbent business plan.
AT&T, on the other hand, has a business plan built on being a separate market from cable tv. Their business plan depends significantly on price point competition through reduced regulation relative to competing products.
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
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reply to wifi4milez
said by wifi4milez See Profile :

Again, that just further proves my point. If the original laws didnt have so many conditions attached then ATT would have simply built out to begin with.
Not so. AT&T decided a long time ago (back when they were SBC) that they would withhold DSL, and later Project Pronto, and now U-Verse to anywhere who didn't give them a big sweetheart deal and protection from competition and consumer protections.

And they played hardball, actually telling end consumers that the reason they couldn't get said services was because of their PUC, or Corporation Commission, or because of certain politicians, and that you need to contact xxxxxx to complain.

Most states folded like wet paper bags. Wisconsin was just one of the more recent.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
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said by KrK See Profile :

said by wifi4milez See Profile :

Again, that just further proves my point. If the original laws didnt have so many conditions attached then ATT would have simply built out to begin with.
Not so. AT&T decided a long time ago (back when they were SBC) that they would withhold DSL, and later Project Pronto, and now U-Verse to anywhere who didn't give them a big sweetheart deal and protection from competition and consumer protections.

And they played hardball, actually telling end consumers that the reason they couldn't get said services was because of their PUC, or Corporation Commission, or because of certain politicians, and that you need to contact xxxxxx to complain.

Most states folded like wet paper bags. Wisconsin was just one of the more recent.
I think you are just confirming what I am saying. ATT didnt think the original conditions presented to them by the state/local government were fair. Now that those conditions are more reasonable, they have rolled out their services as promised.
--
Комитет государственной безопасности


KrK
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said by wifi4milez See Profile :

I think you are just confirming what I am saying. ATT didnt think the original conditions presented to them by the state/local government were fair. Now that those conditions are more reasonable, they have rolled out their services as promised.
They were plenty fair. SBC then AT&T just wanted to lock out the competition and lock in their monopoly. They succeeded to a large extent. They promised all kinds of benefits like lower prices, more jobs, advanced deployment, etc.

You could argue they did then deploy--- in the areas where they were planning too in the first place--- but for the rest, pshaw....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

SD6

join:2005-03-26

reply to marigolds
said by marigolds See Profile :

It is considered an overbuilder, and is treated that way for franchise purposes. This is part of the reason Verizon had little issue with getting local franchises. FIOS actually is much closer to a overbuilder business plan than an incumbent business plan.
AT&T, on the other hand, has a business plan built on being a separate market from cable tv. Their business plan depends significantly on price point competition through reduced regulation relative to competing products.
I did a Verizon franchise in NY last year and they were NOT treated as an overbuilder; nor were they in any other jurisdiction in NY that I know of (and I know dozens). So where is the disconnect? Perhaps you are thinking of a state rule? Or perhaps there is an exception so that FIOS was not considered an overbuilder?


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
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·BroadVoice

reply to marigolds
said by marigolds See Profile :

The FCC decides now.
The FCC made a rule that franchise buildout requirements have to be waived for new entrants into an established market. The LFA has no choice in that matter. I think at one point the LFA could apply buildout requirements to overbuilders, but that has not been the case since somewhere in the mid 90s.
Beyond that, the LFA still has the authority to establish buildout requirements for the incumbent (and they get very specific) and can specify buildout requirements for an overbuilder, but the overbuilder has an escape clause that if their penetration is below a certain amount the requirements are waived. I cannot remember the FCC cutoff off the top of my head (it may be as low as 20% penetration, but I think it's determined by market share), but most franchise agreements set an even higher bar because they want to encourage overbuilders.
Of course, overbuilders are ridiculously hard to recruit. Even when you wave all the buildout requirements and place a cost share on I-net and similar requirements (you cannot waive those, or the incumbent will have you in court), most overbuilders will not even bother to return your letters. The franchise I worked with would recruit 8-12 overbuilders every year to come overbuild our franchise, and only 1 ever got as far as drafting up a franchise agreement (which they never signed).
I am not so sure about that. If you recall last year there was a huge issue regarding ATT deploying UVerse in some small towns in Illinois. The local governments told ATT they needed to deploy to the entire geographic area, or they couldnt do it at all. ATT then basically told them to take a hike and passed over that municipality. Perhaps the buildout requirements still held for them because they are an ILEC, however its just an example of how the rules have been (recently) dictated on a local level.
--
Комитет государственной безопасности


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

reply to marigolds
said by marigolds See Profile :

The FCC decides now.
The FCC made a rule that franchise buildout requirements have to be waived for new entrants into an established market. The LFA has no choice in that matter. I think at one point the LFA could apply buildout requirements to overbuilders, but that has not been the case since somewhere in the mid 90s.
Beyond that, the LFA still has the authority to establish buildout requirements for the incumbent (and they get very specific) and can specify buildout requirements for an overbuilder, but the overbuilder has an escape clause that if their penetration is below a certain amount the requirements are waived. I cannot remember the FCC cutoff off the top of my head (it may be as low as 20% penetration, but I think it's determined by market share), but most franchise agreements set an even higher bar because they want to encourage overbuilders.
Of course, overbuilders are ridiculously hard to recruit. Even when you wave all the buildout requirements and place a cost share on I-net and similar requirements (you cannot waive those, or the incumbent will have you in court), most overbuilders will not even bother to return your letters. The franchise I worked with would recruit 8-12 overbuilders every year to come overbuild our franchise, and only 1 ever got as far as drafting up a franchise agreement (which they never signed).
Lets look at another example, FIOS deployment in NYC. The city government (not the FCC) dictated that Verizon had to cover the majority of the city within specific time frames. In fact, they have been told them must universally offer the service within the next 5 years or so. This decision had nothing to do with the FCC, so perhaps there are exceptions to the rule. Verizon could have simply thumbed their nose at the NYC government and moved along to a more amicable municipality.
--
Комитет государственной безопасности


marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

reply to SD6
said by SD6 See Profile :

I did a Verizon franchise in NY last year and they were NOT treated as an overbuilder; nor were they in any other jurisdiction in NY that I know of (and I know dozens). So where is the disconnect? Perhaps you are thinking of a state rule? Or perhaps there is an exception so that FIOS was not considered an overbuilder?
That seems bizarre. Does Verizon provide landline phone services in those areas? That's the only way I could think of for them not to be consider an overbuilder.
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marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

reply to wifi4milez
said by wifi4milez See Profile :

I am not so sure about that. If you recall last year there was a huge issue regarding ATT deploying UVerse in some small towns in Illinois. The local governments told ATT they needed to deploy to the entire geographic area, or they couldnt do it at all. ATT then basically told them to take a hike and passed over that municipality. Perhaps the buildout requirements still held for them because they are an ILEC, however its just an example of how the rules have been (recently) dictated on a local level.
I watched the Illinois issue closely. They were not required to build out the entire geographic area, just those which passed existing density requirements.
Similarly for New York City, I doubt there is any residential area of the city that does not pass the minimum density requirements already.
Based on what SD6 said though, I wonder if the ILEC issue comes into play when determining if they are an overbuilder.
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

said by marigolds See Profile :

said by wifi4milez See Profile :

I am not so sure about that. If you recall last year there was a huge issue regarding ATT deploying UVerse in some small towns in Illinois. The local governments told ATT they needed to deploy to the entire geographic area, or they couldnt do it at all. ATT then basically told them to take a hike and passed over that municipality. Perhaps the buildout requirements still held for them because they are an ILEC, however its just an example of how the rules have been (recently) dictated on a local level.
I watched the Illinois issue closely. They were not required to build out the entire geographic area, just those which passed existing density requirements.
Similarly for New York City, I doubt there is any residential area of the city that does not pass the minimum density requirements already.
Based on what SD6 said though, I wonder if the ILEC issue comes into play when determining if they are an overbuilder.
As far as I know the only federal requirements on carriers (FCC et al.) is regarding local phone service deployment. I think everything else falls under the state/local government.
--
Комитет государственной безопасности


marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

What I mean is, I wonder if since ATT/Verizon are deploying using their phone infrastructure, if they are considered to have high enough penetration to not be overbuilders. In other words, FIOS and U-Verse are viewed as advanced service deployments and not basic service deployments. (Buildout requirements are applied to advanced services as well.)

SD6

join:2005-03-26

reply to marigolds
said by marigolds See Profile :

That seems bizarre. Does Verizon provide landline phone services in those areas? That's the only way I could think of for them not to be consider an overbuilder.
Yes, they do. Verizon provides landline phone service practically everywhere they have rolled out FIOS.


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
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reply to marigolds
said by marigolds See Profile :

What I mean is, I wonder if since ATT/Verizon are deploying using their phone infrastructure, if they are considered to have high enough penetration to not be overbuilders. In other words, FIOS and U-Verse are viewed as advanced service deployments and not basic service deployments. (Buildout requirements are applied to advanced services as well.)
Uverse is nothing more than DSL, so it shouldnt apply there. FIOS is not using the telephone infrastructure at all, so it shouldnt apply to them either.
--
Комитет государственной безопасности


wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

reply to SD6
said by SD6 See Profile :

said by marigolds See Profile :

That seems bizarre. Does Verizon provide landline phone services in those areas? That's the only way I could think of for them not to be consider an overbuilder.
Yes, they do. Verizon provides landline phone service practically everywhere they have rolled out FIOS.
I think Verizon provides phone service in 100% of the areas they have rolled out FIOS. They only offer FIOS in areas they already serve, and if they serve an area they are required to offer phone service there.
--
Комитет государственной безопасности


marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

reply to wifi4milez
said by wifi4milez See Profile :

Uverse is nothing more than DSL, so it shouldnt apply there. FIOS is not using the telephone infrastructure at all, so it shouldnt apply to them either.
Are you sure? I don't mean going over the phone wires, I mean using the conduits, pedastals, etc.

U-Verse is not purely DSL. Some U-Verse deployments are IPTV over fiber (I would guess only in locations where AT&T has a statewide franchise agreement, as opposed to other areas where AT&T is deploying with on franchise agreement at all).
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wifi4milez
Big Russ, 1918 to 2008. Rest in Peace

join:2004-08-07
New York, NY
·Verizon FIOS
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

said by marigolds See Profile :

said by wifi4milez See Profile :

Uverse is nothing more than DSL, so it shouldnt apply there. FIOS is not using the telephone infrastructure at all, so it shouldnt apply to them either.
Are you sure? I don't mean going over the phone wires, I mean using the conduits, pedastals, etc.
It depends. In most cases they (and all other providers) use the same public ROW to access the end users.

said by marigolds See Profile :

U-Verse is not purely DSL. Some U-Verse deployments are IPTV over fiber (I would guess only in locations where AT&T has a statewide franchise agreement, as opposed to other areas where AT&T is deploying with on franchise agreement at all).
While U-Verse isnt all DSL, its probably upwards of 95% copper based. The very few instances they did deploy fiber were not done due to any statewide franchise, rather they did it for use in greenfield locations. Keep in mind Qwest also has a few thousand customers (out of what is likely millions) fed by fiber, however they also use DSL technology.
--
Комитет государственной безопасности
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Forums » Wisconsin Realizes Franchise 'Reform' Was a Con
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