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Viodi View Newsletter - February 2nd, 2005 Issue

Indie Telco Local Content Workshop Advertisement

Adelstein Comments On Rural Telecom

By Ken Pyle, Viodi, LLC

Snow on the mountains and sun in the valley pretty much describes the picture in LaQuinta, California at OPASTCO’s Annual Winter Convention last month. Inside the conference, it was clear that there are definitely storm clouds for the independent telco industry brought about by the innovation in Internet Protocol and Wireless technologies. The exciting thing was the many independent telco speakers who showed that there is a silver lining behind those clouds of industry turmoil. A recurring theme was the importance of working together as an industry and Archie Macias had a call to action for independent telcos to unite and work together when he stated, “if not you, then who”.

Someone who seemed sincere in his gratitude to independent telephone companies was FCC Commissioner, Jonathan Adelstein. As he had done two weeks earlier at NTCA’s 2005 IOC Wireless Symposium, he started his remarks with appreciation to the independent telcos that supported his nomination to another term as commissioner. He further stated that, “rural Telecommunications is at a crossroads”. He stressed that this could mean huge opportunities and that modern communications could benefit rural America more than urban areas.

Reinforcing Macia’s opening comments, Adelstein pointed to the importance of lobbying to make sure that the independent telcos’ viewpoint is provided when he stated, “[you must] shape the future, instead of having the future dictated to you”. He suggested that it is important for OPASTCO members get in front of wireless applications and that it will be important for rural telcos to get spectrum. VoIP is another technology that is challenging the regulatory infrastructure and that the VoIP will drive broadband. He also stated that the rollout of VoIP cannot undercut the broadband network. He emphasized that it is the FCC’s responsibility to make sure that rural customers are not left behind when it comes to he new technologies and services. As such, he could not, “disagree more that VoIP eliminates the need for USF.”

Words of Wisdom from Telcos

One of the best things about OPASTCO conferences are the presentations from the independent telcos. At this show, telco personnel and their suppliers were talking about wireless, VoIP and video applications. Some of their words of wisdom included:

• Karen McKee pointed out that a reason for Horizon Chillicothe’s video success has been the local content that they originate and program on their system. Some of the things they have done that have allowed them to stand out, include their work with the local League of Women Voters, their weekly television show, Inside the Valley” and their work with local radio stations to cross-promote their services and create programming that is unique to their system. She also provided sage advice when she said, “anytime you get kids involved in television programming, you get viewers.”
• Richard Gesinger made the point that it is the service, not the technology that needs to be promoted. He gave the example of Nextel has been using VoIP in their push to talk technology for years, but has never promoted the technology, only the service and the benefits. He also pointed out the Telecom services provide funding to USF, but information services do not. He also talked about the potential for SPIT, which is Spam over Internet Telephony, to disrupt the new networks
• Matt Farley, Network Administrator for Wheat State Telephone described an approach whereby they made their own softswitch using off-the-shelf PCs and open source software. They began by testing the service on their own employees. The next step was to reduce the cost of toll for carrying traffic to other exchanges. Farley made a suggestion that was echoed by others at the conference that the biggest challenge was cross-training the telephony and data personnel.
• Lonnie D. Pedersen of Telecommunications, Service and Community described how they are bringing VoIP to both their incumbent and CLEC exchanges. Where they don’t have physical loops, they plan on using virtual loops from an incumbent operator. They are using VoIP to try to get back the 6,000 dial-up subscribers that they have lost to DSL. They are attempting to be a Vonage with a local touch. There rate plans are very similar to Vonages with plans of $14.99, $24.99 and $34.99 per month, respectively. They also have IP Centrex solutions for businesses. Pedersen had a great bit of advice when he said, “build it and they come is ok, but build it and get a three year contract is better.”
• Jason Gonzalez of ENMR Telephone Cooperative pointed out something that is not heard too often, when he said that telcos’ new competitors are most likely going to completely different trade shows and will be entities like Sony and Microsoft. ENMR is deploying fixed and non Line of Sight BRS (formerly known as MMDS spectrum) t serve customers with high-speed data and VoIP. He suggested that only one in five personnel may be able to make the transition between the circuit switched and IP worlds. To facilitate their training of staff, they have a rather innovative approach of partnering with the local community college for an IP certification program.

Scenes from the Winter 2005 OPASTCO Conference
(music courtesy of Mr. Kurt Iverson, sincemonday.com)

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