Agreed, very much so!

-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com



On 7/29/2010 10:41 AM, Jeff Broadwick wrote:
> I am so glad you moved over to the Wispa list Fred!  I don't always agree
> with you, but I REALLY appreciate how much thought and detail you put into
> your responses.
>
>
> Regards,
>
> Jeff
>
>
> Jeff Broadwick
> ImageStream
> 800-813-5123 x106     (US/Can)
> +1 574-935-8484 x106  (Int'l)
>
> -----Original Message-----
> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
> Behalf Of Fred Goldstein
> Sent: Thursday, July 29, 2010 11:20 AM
> To: WISPA General List
> Subject: Re: [WISPA] USF Reform Bill Introduced - The most compelling reason
> to document and map your network coverage ever
>
> At 7/29/2010 10:34 AM, Brian Webster wrote:
>> Yes but if the cable companies could also ally with wireless carriers
>> to get other areas excluded from USF subsidies, the field would be a
>> more level one should the cable companies try to compete in other
>> markets. We might also get Clearwire and the cellular carriers to
>> support the position although most of their deployments will probably
>> be in areas that would never have qualified for USF to begin with. If
>> the terms wireline are kept in the bill it would appear that wireless
>> services might also be excluded from receiving any USF funds which
>> basically keeps USF funds in the exclusive hands of the Telco's as it has
> been.
>> Personally I think that if we don't out and out oppose the bill for USF
>> reform, but rather do something like this as a minor change, the WISP
>> industry can make out better. USF reform will happen and USF funds will
>> be spent on deploying broadband to unserved areas no matter what. What
>> we need to do is make sure the law does not fund builds in areas
>> already served by WISP's and other technologies. If the battle could
>> also be fought and won to allow WISP's access to the funds for
>> broadband deployments then great. When going up against the cable and
>> Telco lobbies, one has to be wise about picking their battles as the
> funding to fight this will be limited.
>
> And on a related note, Patrick Leary wrote,
>
>> You'd think there would be an excellent legal argument to fight that.
>> Seems it'd be difficult to enact a law that in effect discriminates
>> against certain classes of providers, especially since WISPs are the
>> only "pure play" broadband providers out there. Theorectically the
>> re-configured USF is meant to propel broadband...so how could the feds
>> exclude the only entity that provides broadband first, other services
>> second. All other providers have "broadband" as a secondary play.
> Patrick's first... We're talking about a new law, so the legal argument
> boils down to whatever the law says is legal, is legal, unless it's a
> flagrant constitutional violation.  Which I don't see, since the main issue
> here is simply who gets government handouts, and handing out money (and
> taxing) is sort of the normal role of government.  The problem is that the
> system is so corrupt by now that the handouts appear to be irrational.  In
> practice they're not; they just aren't done for the public good.
>
> Back to Brian's point... You first have to think about whose bill this is.
> Boucher doesn't make this stuff up himself.  Nor does his staff, though they
> know more about it than most congressional staffers.  Boucher's job in
> Washington is, and has always been, to carry Verizon's water.  When he puts
> a bill in the hopper, it comes from them.  Tom Tauke's staff probably
> drafted most of the bill.
>
> So what is Verizon asking for?  You again have to look at what USF is all
> about.  It was created as part of intercarrier compensation reform.  Before
> USF, toll settlements to rural carriers were high enough to pay the
> subsidies. Make a 30 cent call and the rural carrier gets 50 cents for
> terminating it.  This worked because Long Distance was a huge luxury and
> thus could be milked.  As the cost of delivering LD went down, the amount
> that could be diverted to supporting the ILECs went up.  But the system
> broke down under competition, especially from VoIP, but also from something
> called "reality" -- you can't perpetuate a rotten system like that forever.
> It was hugely inefficient.  So intercarrier payments from IXCs to LECs no
> longer pay the whole freight, and explicit USF makes up the difference.  The
> IXCs, however, are the main payers of USF.  They count the cards differently
> but the kitty still goes the same way.
>
> In the 1980s, Verizon (then called Bell Atlantic) was a LEC and on the
> receiving end of IXC switched access charges.  But now the Bells get much
> lower switched access rates, so it's not a big revenue source for them.
> Instead, you have Verizon owning the former MCI and Worldcom assets and
> Southwestern Bell owning the former AT&T Corp.
> assets, so the two mega-Bells are probably net payers, not recipients, of
> subsidies to the rurals, both via USF and access charges.  Sprint, of
> course, no longer has any affiliated LECs, so it's a big net loser too.
> Those three companies thus want to lower the bill.  The rural carriers, from
> the few remaining mom-and-pops to the coops up to big CenturyTel and
> Citizens/Frontier, want even more.  So they are using "broadband" as an
> excuse.  Give them more USF money and they'll extend DSL out further, even
> FTTH.  Hey, it's not *their* money!  They don't build gold-plated networks.
> It's solid 14k gold.  (Not 24k.  They're too modest for that, and besides
> 14k is harder.)
>
> So what the Boucher bill does is push the FCC along the path it was
> considering anyway, with some tweaks.  The 75% clause is there to cut off
> support to ILECs that have been almost fully overbuilt by cable, not because
> cable cares (they don't get USF), but because it may lower the total cost of
> the USF, and let's face it, PacketCable is just as good as most POTS.  It's
> not Skype!  It's not even on the Internet.  Verizon HATES the cable
> industry, especially Comcast, but if the presence of cable can be used
> against USF subsidy-suckers, then it's counted.
>
> USF still only goes to "ETCs", as before, and getting to be an ETC may not
> be easy.  The FCC has largely frozen out new competitors, and their plan is
> to limit USF high-cost support to ILECs only.  The Boucher bill opens it up
> by creating a subsidized wireless franchise too, so Verizon and its best
> buddy ATT can split up the country that way.  (Sprint and other can bid too,
> though they're less likely to
> win.)  The odds of a WISP getting USF out of this bill are roughly those of
> getting a unicorn to ride on to visit customer sites.
>
> Now let's get back to the technical issue.  The bill not only specifies
> "wireline", but it requires standard-quality telephony.  That means,
> basically, full-QoS POTS with local phone numbers.  Can a WISP deliver that?
> Yes, but it's not trivial.  It requires QoS-engineered networks.  It
> requires high reliability, battery backup, etc. It may be hard for any
> "routed" network can meet the grade, but that can be fixed in software.
>
> It also requires that you use, or be, a local CLEC for the voice service.
> This is pretty scary for most ISPs, but if there were a good reason for it,
> then it could be handled.  There are a few ways.  If there is a local CLEC
> already, the WISP can partner with it.  Or a CLEC can sell wholesale dial
> tone  (SIP, MGCP or H.248, for
> instance) to the WISP, though that requires the WISP to be a CLEC too.  Or
> the WISP/CLEC can outsource the whole thing to a company who operates a
> centralized call agent, and who places down a media gateway at the local
> tandem and does all the work.  There are a number of variations possible
> here and I see some of them in my CLEC work, though the "rent-a-switch" and
> "rent-a-call-agent" business hasn't developed as far as I'd like it to.
>
> But since the WISP still doesn't get USF, there's not much reason to try,
> unless the WISP wants the voice revenue.  Which isn't a bad thing,
> actually... you can deliver it for a much lower *cost* than the rural ILEC.
> But you can't undercut the ILEC's *price*, since USF is paying most of the
> freight.  That's the trouble with the whole system.  And Boucher and Terry,
> who represent largely rural constituencies, are not interested in fixing
> that!  In theory, if the law didn't specify wireline and the WISP-CLEC could
> pass the 75% test, then the ILEC would take a big hit and have to raise its
> prices, which would be politically unpopular.  That's the only upside, and
> it's a long shot at best.
>
>> Brian
>>
>>
>> -----Original Message-----
>> From: Jeff Broadwick [mailto:jeffl...@comcast.net]
>> Sent: Thursday, July 29, 2010 10:07 AM
>> To: bwebs...@wirelessmapping.com; 'WISPA General List'
>> Subject: RE: [WISPA] USF Reform Bill Introduced - The most
>> compellingreason to document and map your network coverage ever
>>
>> Is cable not considered a "wireline" service?
>>
>>
>> Regards,
>>
>> Jeff
>>
>>
>> Jeff Broadwick
>> ImageStream
>> 800-813-5123 x106     (US/Can)
>> +1 574-935-8484 x106  (Int'l)
>>
>> -----Original Message-----
>> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On
>> Behalf Of Brian Webster
>> Sent: Thursday, July 29, 2010 10:02 AM
>> To: 'Fred Goldstein'; 'WISPA General List'
>> Subject: Re: [WISPA] USF Reform Bill Introduced - The most
>> compellingreason to document and map your network coverage ever
>>
>> Fred,
>>          That is understood, however I think that WISPA may try to
>> lobby to have the term "wireline" removed such that any technology that
>> delivers the defined broadband and voice services should be qualified
>> to meet the 75% requirement. This is still a bill and not a law so
>> there are opportunities to change this although I don't expect that one
>> to go through without a fight. In this case we might be able to ally
>> ourselves with the cable industry. I am sure they would love to see
>> Telco's lose their USF subsidies in markets that are served by cable.
>>
>>
>>
>> Brian
>>
>> -----Original Message-----
>> From: Fred Goldstein [mailto:fgoldst...@ionary.com]
>> Sent: Thursday, July 29, 2010 9:42 AM
>> To: bwebs...@wirelessmapping.com; WISPA General List
>> Subject: Re: [WISPA] USF Reform Bill Introduced - The most compelling
>> reason to document and map your network coverage ever
>>
>> At 7/29/2010 08:01 AM, Brian wrote:
>>> Hit me off list and I can offer some suggestions.
>> As I mentioned, the 75% rule only applies to wireline providers (i.e.,
>> cable), so mapping WISP coverage buys nothing.
>>
>> The Boucher-Terry bill has nothing in it to help WISPs and plenty to
>> hurt them, including a rather high tax to support your competitors.
>>
>>
>>
>>> Brian
>>>
>>>
>>> -----Original Message-----
>>> From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org]
>>> On Behalf Of RickG
>>> Sent: Wednesday, July 28, 2010 11:24 PM
>>> To: WISPA General List
>>> Subject: Re: [WISPA] USF Reform Bill Introduced - The most compelling
>> reason
>>> to document and map your network coverage ever
>>>
>>> I'd like to but I dont know where to begin and with my limited time I
>>> cant even try to figure it out.
>>>
>>> On Wed, Jul 28, 2010 at 12:37 PM, Brian Webster
>>> <bwebs...@wirelessmapping.com>  wrote:
>>>> Steve Coran just posted the message below to the WISPA FCC
>>>> committee
>> list.
>>> I
>>>> took particular note to the following statement:
>>>>
>>>>
>>>>
>>>> - would reduce or deny support to wireline incumbents in areas
>>>> where at least 75% of households can receive voice and broadband
>>>> from a
>> competitive
>>>> provider that does not receive support
>>>>
>>>>
>>>>
>>>> Now the way I read the above statement is that if a WISP covers
>>>> 75% of a current USF recipients service area, there will no longer
>>>> be eligibility
>>> to
>>>> receive USF funds. Remember if they have broadband they also have
>>>> access
>>> to
>>>> many VOIP providers even if you do not provide VOIP services.
>>>> Vonage and Skype come to mind, not to mention cellular coverage.
>>>> This would be a
>> huge
>>>> factor in leveling the playing field for WISP's in rural markets!
>>>> I
>> cannot
>>>> see a more compelling reason to document and map your networks
>>>> than
>> this.
>>>> Not only will it prevent yet another subsidized competitor from
>>>> coming
>> in
>>> to
>>>> your service area, but it will also erode funding  for any Telco
>>>> who currently receives USF in your markets. This would bring
>>>> wireless as a delivery method to the forefront because there are
>>>> then no artificial revenue streams subsidizing the cost to deliver
>>>> last mile service. We
>> all
>>>> know that wireless has the least cost per household passed in low
>> density
>>>> markets.
>>>>
>>>>
>>>>
>>>> There are many ways to document and map your coverage areas. First
>>>> and foremost though is that you should file the Form 477 as
>>>> required. Next
>> one
>>>> should map their network with an accurate service area where you
>>>> would confidently offer service. This can be done many ways
>>>> (including paying
>> me
>>>> to do it). This also shows a very important reason to be
>>>> participating
>> in
>>>> your state broadband mapping efforts. I would expect that those
>>>> state
>> maps
>>>> will become one of the major verification sources to establish the
>>>> 75% coverage. The FCC 477 database will probably become another
>>>> verification source. If you are listed in both of them it would be
>>>> very hard for
>>> someone
>>>> to say you don't exist and don't offer coverage in their areas.
>>>>
>>>>
>>>>
>>>> One of the downsides to this bill is that all broadband providers
>>>> will
>> be
>>>> required to contribute to the fund. My gut feeling though is that
>>>> if
>>> WISP's
>>>> were accurately mapped and documented it would show so much less
>>>> of the
>> US
>>>> is unserved by broadband and thus the required funding through USF
>>>> to
>> get
>>> it
>>>> there will be much less.
>>>>
>>>> Brian
>>>>
>>>> ----------------------------------
>>>>
>>>>
>>>>
>>>> Last week, Reps. Boucher (D-VA) and Terry (R-NE) introduced
>>>> legislation
>>> that
>>>> would reform the Universal Service Fund.  The Press Release,
>>>> Overview, Section by Section summary and text of the bill are
>>>> available at this
>>> link:
>>>>
>>> http://www.boucher.house.gov/index.php?option=com_content&task=view&i
>>> d=1579
>> &
>>> Itemid=122
>>>>
>>>>
>>>> I have not read these documents, but plan to do so soon.  A few
>> highlights
>>>> that the trade press has noted:
>>>>
>>>>      - would reduce or deny support to wireline incumbents in areas
>>>> where
>>> at
>>>> least 75% of households can receive voice and broadband from a
>> competitive
>>>> provider that does not receive support
>>>>
>>>>      - FCC would create cost model that includes broadband in
>>>> figuring support models
>>>>
>>>>      - competitive bidding among wireless carriers for USF support
>>>>
>>>>      - no more than two wireless CETCs could get support in the
>>>> same area
>>>>
>>>>      - carriers would have 5 years to provide broadband throughout
>>>> their service areas, or would lose support
>>>>
>>>>      - all broadband providers would pay into USF to expand
>>>> contribution
>>> base
>>>>      - FCC to decide appropriate speed for broadband
>>>>
>>>>
>>>>
>>>> Rep. Boucher has said that the bill is on his "front burner" and
>>>> that he wants to get the legislation passed this Fall.  Please
>>>> feel free to
>>> comment
>>>> on-list AFTER you've reviewed the documents so that you can
>>>> promote education of the WISPA membership and help shape whatever
>>>> position WISPA
>>> may
>>>> wish to take as the bill works its way through Congress.  Thanks.
>>>>
>>>>
>    --
>    Fred Goldstein    k1io   fgoldstein "at" ionary.com
>    ionary Consulting              http://www.ionary.com/
>    +1 617 795 2701
>
>
>
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