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Mr Matt

join:2008-01-29
Eustis, FL
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Try a time machine!

If you take a ride back in a time machine to the 20's and 30's, you will find that most rural telephone service provided by Cooperatives! The Cooperatives were financed by low interest Rural Electrification Administration Loans.

With the Senate and Congress in the back pocket of the Broadband ISP's, I do not hold out to much hope for deployment of rural broadband soon.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Try a time machine!

said by Mr Matt:

If you take a ride back in a time machine to the 20's and 30's, you will find that most rural telephone service provided by Cooperatives! The Cooperatives were financed by low interest Rural Electrification Administration Loans.

With the Senate and Congress in the back pocket of the Broadband ISP's, I do not hold out to much hope for deployment of rural broadband soon.
Y can they not do something like that with broadband?

Ya know it makes me wonder how, WISPs can stay in business where it is not profitable enough for the big ISPs?

Matt
All noise, no signal.
Premium
join:2003-07-20
Jamestown, NC
kudos:12

Re: Try a time machine!

said by me1212:

Ya know it makes me wonder how, WISPs can stay in business where it is not profitable enough for the big ISPs?
Two words: Stock Holders

Actually, three words: Impatient Stock Holders
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Try a time machine!

Makes since. I am just happy my WISP works as well as a wired ISP. Too bad they wont let me get the next speed package, it would oversell them too much.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Try a time machine!

There's actually the $7.2B (beeeeeeelllllion) broadband grant in the ARA. So yes something like Rural Electrification for broadband could happen.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Try a time machine!

said by iansltx:

There's actually the $7.2B (beeeeeeelllllion) broadband grant in the ARA. So yes something like Rural Electrification for broadband could happen.
I know, but how do we know the ISPs will use that money to wire rural areas? The ISPs r trying to keep the money from the little guys who would wire rural areas.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Try a time machine!

Simple: ask for the money yourself. Get a business plan etc. and ask for gov't money to finance it.
soothsayer15

join:2002-03-01
Irving, TX
said by me1212:

said by Mr Matt:

If you take a ride back in a time machine to the 20's and 30's, you will find that most rural telephone service provided by Cooperatives! The Cooperatives were financed by low interest Rural Electrification Administration Loans.

With the Senate and Congress in the back pocket of the Broadband ISP's, I do not hold out to much hope for deployment of rural broadband soon.
Y can they not do something like that with broadband?

Ya know it makes me wonder how, WISPs can stay in business where it is not profitable enough for the big ISPs?
A WISP is nothing like a major telco. You're comparing apples and oranges. Overhead costs and regulations are worlds apart.
Mr Matt

join:2008-01-29
Eustis, FL
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I am sure if rural residents tried to form a broadband cooperative the Cable and Telephone Companies would quickly move to have the lawmakers in their pockets write laws making formation of such a cooperative a violation of the law.

WISP's can stay in business because of low infrastructure cost.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Try a time machine!

If the local cooperatives involve taxpayer funds backing them, then yes, the cable and telephone companies would likely cry foul...and rightfully so IMO.

yaplej
Premium
join:2001-02-10
White City, OR

Re: Try a time machine!

Rightfully so?! That's exactly how the phone companies got started! So it was OK to give a ton of money to build the phone companies networks, but now that we need another one to compete with them its not. Hmmm I can smell a double standard here.
--
Open Source WAN Accelerator
»trafficsqueezer.sourceforge.net/
NormanS
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Re: Try a time machine!

said by yaplej:

Rightfully so?! That's exactly how the phone companies got started! So it was OK to give a ton of money to build the phone companies networks, but now that we need another one to compete with them its not. Hmmm I can smell a double standard here.
I can't find any evidence that the telephone companies started out with taxpayer funding. They didn't even become government regulated monopolies until 1934, some 57 years after Alexander Graham Bell formed the Bell Telephone Company.

And in 1913, AT&T faced their first government sanctioned anti-trust lawsuit.

Where do people come up with this stuff?
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

d_l
Barsoom
Premium,MVM
join:2002-12-08
Reno, NV
kudos:7

Re: Try a time machine!

I think the taxpayer funding idea is an urban myth that some people just want to believe. They cling to it as if it is their religion.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Try a time machine!

said by d_l:

I think the taxpayer funding idea is an urban myth that some people just want to believe. They cling to it as if it is their religion.
with all the tax subsidies, slush funds, accepted monopoly status, and unregulated "unfees" that have been allowed to piggyback onto all telco bills it's difficult to make the case that telco ISN'T funded by taxpayers.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by NormanS:

Where do people come up with this stuff?
The USF "govt taxes" that are collected built those phone networks, or the PUC imposed universal service regulations, which allowed AT&T to justify price increases by putting that money into a internal fund towards universal service buildout.
NormanS
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Re: Try a time machine!

said by patcat88:

The USF "govt taxes" that are collected built those phone networks, or the PUC imposed universal service regulations, which allowed AT&T to justify price increases by putting that money into a internal fund towards universal service buildout.
Eh? Wasn't USF an invention of the 1996 Telecommunications Act? AT&T wasn't even in the ILEC business in 1996, having been divested of that business in 1984. And that was nearly a century after the telephone companies were first created; out of private funds.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

1 edit

Re: Try a time machine!

I belive the USF was created as part of the 1984 divesture. Another website says the USF was made as part of 1996 Telecommunications Act as you said. That might have just been the e-rate program. If a free CFR existed online prior to 1998 (gpoaccess goes to 1996, FCC title 47 wasn't scanned in until 1998) this question could be instantly answered.

The subsidy aspect of USF might have existed in interconnection rate agreements, the 1996 part just added e-rate for libraries and schools to the mix, where the FCC mandated asynchronous rates, 1 cent a minute from Podunk Telephone Company to Verizon, 25 cents a minute from Verizon to Podunk Telephone Company.

I know for a fact that AT&T urban LEC operations subsidized Long Lines and rural LEC operations. Read page 12 in this PDF »pirp.harvard.edu/pubs_pdf/weinha···87-1.pdf
NormanS
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Re: Try a time machine!

said by patcat88:

I belive the USF was created as part of the 1984 divesture.
Even so, the Bell Operating Company networks had long been in place, by then, and, like the General Telephone and Electronics network, and Roseville Telephone network (and several other non-Bell, non-AT&T regional ILEC networks) deployed using private capital.

So my question still stands: "Where to people get this 'public taxpayer funded' nonsense about the deployment of the telephone infrastructure?"
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
wierdo

join:2001-02-16
Tulsa, OK
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Re: Try a time machine!

said by NormanS:

So my question still stands: "Where to people get this 'public taxpayer funded' nonsense about the deployment of the telephone infrastructure?"
The fact that the REA was amended in the 40s to allow for loans and grants for getting telephone service to rural areas.
--
It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word.
NormanS
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Re: Try a time machine!

"Amended in the 40's". "Rural" areas. By 1949, when REA loans were authorized for telephone network expansion, most of the population (outside of rural areas) had access to the privately capitalized telephone network. Unless you live in rural Placer County, California, or similar locations, if your telephone service was provided by AT&T, it was privately capitalized.

If AT&T (or GTE) didn't reach you, as in parts of California near the city of Roseville, often some other company, or cooperative would provided service. In Roseville, that was the Roseville Telephone company, founded by a pair of farmer brothers.

In all, I'd wonder if even 10% of the telephone network was government funded; and none prior to 1949. It just seems so much like a "Red Herring".
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum
wierdo

join:2001-02-16
Tulsa, OK
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Re: Try a time machine!

said by NormanS:

In all, I'd wonder if even 10% of the telephone network was government funded; and none prior to 1949. It just seems so much like a "Red Herring".
Most of many states were wired using funds from what we now call RUS. Arkansas being one of them. Several cities at&t serves wouldn't be at&t served were it not for RUS money. There were a few privately capitalized companies in the smaller towns (Prairie Grove Telephone Company, Madison County Telephone Company), but even those didn't do much for the areas outside of the 'urbanized' areas until after RUS came along.
--
It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word.
NormanS
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Re: Try a time machine!

The only information I can find on RUS suggest that a "for profit" organization, such as AT&T, would have to have the ability to secure, and repay the funding as a loan. Which is no different from VA Home Loans. Would you claim that the government bought the house I was paying for under a VA Home Loan; then assume that I just took possession of it without repaying the funds?

Everybody dancing with me on this has failed to prove that the government just up and gave money to the ILECs, without any security, or repayment from private capital. The bottom line is still that AT&T, and her descendants to not appear to have taken government funding gratis to build out their infrastructure; they may have taken government loans, but those were repaid, or are being repaid, using private capital. In which case, the infrastructure was/is still being paid for with private funds.

IOW, if the government funded the AT&T buildout of the Arkansas telephone infrastructure, they were (or still are being) repaid with private funds. With interest. So what has the government "given away" to the telcos?
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum

morbo
Complete Your Transaction

join:2002-01-22
00000
said by openbox9:

If the local cooperatives involve taxpayer funds backing them, then yes, the cable and telephone companies would likely cry foul...and rightfully so IMO.
cable and telco can't have it both ways, although they will try hard. either provide service to these areas or get the hell out of the way and let the community decide if they want to start a co-op.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Try a time machine!

I agree with you statement if commercial cable and telephone providers aren't currently providing or have any immediate (within a year) intention of providing service. Obviously telephone service is provided everywhere, so that can be a sticking if munis desire to enter that market. Also, a co-op doesn't have to be taxpayer funded. If the co-op is privately funded, then I say let the competition begin.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Try a time machine!

you seem to give incumbents a free pass in providing sub-par services with vague promises for future upgrades. i am giving the community the freedom to do whatever they wish: stay with the status quo or try something that may benefit them in the long run. the key issue being that there should be no law prohibiting a community from competing if they wish.
openbox9

join:2004-01-26
Alexandria, VA
kudos:2

Re: Try a time machine!

Where did I give a free pass? Communities have a choice, just don't compete unfairly with a bottomless pit of taxpayer dollars. I do agree that we don't need laws prohibiting municipalities from competing. We have too much legislation in this world already.

battleop

join:2005-09-28
00000
The "last mile" for the Wisp is much cheaper than a land line company. For example, if you lived down a 1 mile road by your self the telco would have to either bury or string cable to your place. That would include pull boxes or telephone poles. The extra costs of labor and materials would be VERY expensive.

A Wisp only needs a good line of site (or NLOS for 900) to get you a connection. The cost of the install and equipment at your place would be well below $1,000 for every thing.

There are a few small rural Telcos using Wisp gear but very few. I am surprised that more are not using more wireless in their plant.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Try a time machine!

Hmm, I ain't surprised, with wireless you put up the tower and every1 in the line of site and signal area can get it. Would cost a lot less than burring a mile of wire.

"I am surprised that more are not using more wireless in their plant." You and me both dude.
elray

join:2000-12-16
Santa Monica, CA
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said by battleop:

The "last mile" for the Wisp is much cheaper than a land line company. For example, if you lived down a 1 mile road by your self the telco would have to either bury or string cable to your place. That would include pull boxes or telephone poles. The extra costs of labor and materials would be VERY expensive.

A Wisp only needs a good line of site (or NLOS for 900) to get you a connection. The cost of the install and equipment at your place would be well below $1,000 for every thing.

There are a few small rural Telcos using Wisp gear but very few. I am surprised that more are not using more wireless in their plant.
Wisps and coops make sense in rural settings when cable lengths are too long for IDSL.

But for a Wisp to afford that mythical $1K/site installation cost to serve everyone in the county, they aren't going to be charging $25/month for 10M service. To be profitable (or even not-for-profit), rates are still going to be $75 a month for 1M speeds.

If the focus continues to be on delivering fiber optics to the farm at city prices, via some massive national subsidy, few are going to take the risk to build a Wisp, only to be wiped out by the government with our tax money.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by me1212:

said by Mr Matt:

If you take a ride back in a time machine to the 20's and 30's, you will find that most rural telephone service provided by Cooperatives! The Cooperatives were financed by low interest Rural Electrification Administration Loans.

With the Senate and Congress in the back pocket of the Broadband ISP's, I do not hold out to much hope for deployment of rural broadband soon.
Y can they not do something like that with broadband?
It still exists.
»www.usda.gov/rus/
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..
What would make more sense is to form a Co-Op that would pick up these areas and rewire them.

Many co-ops around the country are laying FTTH and many have been a TV provider for years, long before ATT and VZ even thought about doing it : »www.horizontechnology.net/ . based in Ohio and has been offering TV for at least 5 years now.
viperlmw
Premium
join:2005-01-25

Re: Try a time machine!

said by hottboiinnc:

What would make more sense is to form a Co-Op that would pick up these areas and rewire them.

Many co-ops around the country are laying FTTH and many have been a TV provider for years, long before ATT and VZ even thought about doing it : »www.horizontechnology.net/ . based in Ohio and has been offering TV for at least 5 years now.
The independents/co-ops are subsidized via USF, spending tons of money per subscriber, and getting to keep the returns. Meanwhile, the President and CEO are making good bank. Nice job, if you can get it.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: Try a time machine!

VZ, ATT and Qwest are also get money from the USF so i don't see what the big deal is.

Horizon is the only one that has actually done anything really in terms of deploying anything on a more massive scale from what you can find. They have xDSL available for TV, they have faster DSL rates, and lower rates period. They actually compete with Cable on the terms of pricing and whats available. You don't see VZ or ATT even doing that. they just care about how much they can shove down your throat and claim you need it.
viperlmw
Premium
join:2005-01-25

Re: Try a time machine!

said by hottboiinnc:

VZ, ATT and Qwest are also get money from the USF so i don't see what the big deal is.
~snip~
The USF money the RBOCs get from USF is from E-Rate, not from the High Cost Fund. Independents/co-ops get both (this includes Frontier, CenturyTel, Windstream, etc.).
xsiddalx

join:2005-03-11
Chicago, IL

Re: Try a time machine!

said by viperlmw:

said by hottboiinnc:

VZ, ATT and Qwest are also get money from the USF so i don't see what the big deal is.
~snip~
The USF money the RBOCs get from USF is from E-Rate, not from the High Cost Fund. Independents/co-ops get both (this includes Frontier, CenturyTel, Windstream, etc.).
Try again! It's quite simple to got to www.usac.org and check the high cost fund disbursement link. Really...it is that simple, try it some time

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