Archive for the ‘Last Mile’ category

FCC telecom overhaul vote delayed.

November 4, 2008

 Under pressure from Congress and consumer groups, Federal Communications Commission (FCC) Chairman Kevin Martin has canceled a vote tomorrow on a plan to overhaul intercarrier compensation and Universal Service Fund (USF) regulation.

Martin had proposed a “dramatic” update of inter-carrier compensation, along with a review of the way phone companies receive and can spend Universal Service Fund monies, but lawmakers and advocacy groups wanted to get a look at the details as to what would be proposed while giving affected parties the chance to comment. 

Reform details had been closely held, but reports said the rule changes would have resulted in the abolishment of the complex set of accounting “settlements” between larger carriers and rural phone companies, in exchange for a simplified rate policy that would have likely boosted rural phone line fees by a couple of dollars.

In addition, Universal Service Fund monies would have been used to compensate rural carriers for lost moneys, but USF funds would have to be specifically invested in broadband expansion.

If intercarrier compensation was reformed, large phone companies would stand to save the most money between lower fees and simplified accounting, while smaller rural carriers would lose out on a major source of revenue.

Last week, 100 members of Congress publicly petitioned the FCC to delay the vote while behind-the-scenes discussions took place between Capital Hill and the FCC commissioners.

FCC: FCC announces the removal of vote on wireline compensation.

Cellular impacting landline penetration.

October 20, 2008

 Fear over landline losses has prompted analysts to reduce estimates for third-quarter profit from telecom companies. The shares of Verizon and AT&T have been under pressure since last they reported earnings in late July. AT&T has slid 20% and shares of Verizon are down 21% over the last three months.

According to Thomson Reuters, analysts have reduced estimates for earnings per share and revenue for both Verizon and AT&T over the fear of landline losses. In its last quarterly report, AT&T said total connections fell 8.1% from the year ago period, worse than many anticipated.

Verizon’s landline revenue has also fallen 1.8% from a year ago. Total landlines fell 8.5% in the second quarter from a year ago, with a large amount of that decline coming from the residential segment.

With wireless penetration above 80% in the U.S., there is a limited pool of new subscribers for AT&T and Verizon to compete for.

But how VoIP fits into these figures? Simply we don’t know because VoIP subscribers are using cable services, naked DSL, WiFi/WiMax networks, direct links and not a landline service. So its difficult to count the penetration of VoIP service at this time.

Broadband war. The FiOS Attack to the cable guys!

May 21, 2008

Verizon, already doing battle with Cablevision on Long Island where its pushing FiOS in Nassau and Suffolk counties, today finds out if it can extend its reach into New York City.

The company has a proposal in front of the city’s Franchise and Concession Review Committee that’s scheduled to be heard today that will take the company into all five boroughs of Manhattan, the Bronx, Staten Island, Brooklyn and Queens. Count Cablevision and Time Warner as Nos. 1 and 2 on its hit list, as the two cable operators currently are top dogs in the Big Apple.

“Verizon plans to offer choice and competition in the traditional monopoly cable TV market to all the residents of the five boroughs of New York City,” said Monica Azare, a Verizon senior vice president.
 

Full Article Verizon to battle Time Warner cable monopoly. The Queens Courier.