Bad policy, bogus artifacts, required orange vests - and a darn good switch

Last May Nevada Bell (owned by SBC) sent out an RFP. Did anyone want to buy a couple of its rural service areas with just more than 100 subs - centered on Austin, Lander County? Only one company responded. $1.

Nevada Bell declined. The company has now upped the ante and will consider offers for the entire 1000-plus subs at Austin and (60 miles south with fiber connecting the two) Round Mountain exchanges plus one end of a microwave path for toll. Oh yeah, plus four really rural areas now getting phones by radio. Dan Jacobsen says they have a book value over $10 mil.

Suppose they get 25 cents on the dollar. The rural upgrades are going to be the killer as this area is supposed to stay non-USF supported. Other smaller LECs (whoops, IOCs) that have bought former BOC properties - when faced with the reality that no subsidy comes with it, wish they had not.

And this reality is coming home to roost on commissioners. That is, why should the several states regulate any telco's rates anymore? There is supposed to be competition. Somewhere less than 20% of big city users don't have, nor do they plan to ever have, a wireline telephone. And the cable providers such as AT&T are getting their act together so one out of five users is with the competitive companies.

So the bottom line is, what are the reasons that rate regulation should continue for wireline telcos? It's expensive. It prevents competition - and is now bad public policy.

The little switch that does

Two years ago, Chuck and I heard of Taqua of Richardson, Texas. The company builds an interesting central office switch. Cutting-edge technology. The Rural Utility Service (RUS) approved my Beehive Tel changing out a 20 year old Harris digital - to enable an RUS (REA) field trial for Taqua. It passed.

As you read this, Taqua should be on the RUS approved list for central dial offices (CDO) to buy, with RUS loan approval.

We now have five in service and will cut over one more each month this year. Staff from the Utah PSC examined the one in Vernon, Utah. I think Judith Hooper was more impressed with the new building. Taqua management is committed to us IOCs and have worked hard to satisfy that market.

Hysterical historical events

A consulting engineer tells of walking a proposed right of way through rural Utah desert scrub with a big city BLM archaeologist. The engineer saw an old horseshoe. Not uncommon. He picked it up and said to the guvment guy, "Is this the type of stuff you are looking for?" and then pitched it off to the side. The BLM grunt got all excited. His eyes bugged out. A vein nearly popped out of his neck. He yelled at the engineer. "That is an artifact and should not be touched. Put it back - with the open end facing the exact way it was laying with the proper side up!"

Yet another more realistic BLM gal, walking in the boonies with the same engineer, came across some tin cans and stuff ("cultural resources" in guvment speak). She told the guy to look elsewhere. And proceeded to kick the trash aside. As they continued to walk a prospective cable route, she said the engineer could stop looking elsewhere, saying, "recording this junk needs some common sense." A rare commodity in this day and age.

Universal service?

There is a family 20 miles northwest of Grouse Creek right next to where the Utah/Idaho/Nevada state lines join. There is no two-hop radio path. Lots of elevated hills. The staff of the Utah PSC want to use Utah high-cost funds to pay an out-of-state cellular operator to erect a cell tower to get a phone to these folks. Hello? My Beehive is the certificated carrier! Why not spend Utah money for Utah companies?

Interstate ROW?

Nevada telcos are up in arms. Seems the state highway folk want draconian regulations that don't allow a telco troubleshooter to stop and park off the highway. They say we cannot stop to check a manhole or pedestal. Got to get a permit first. Then set out warning signs - plus wear the orange vest and have flashing lights. Do the states confer with each other to craft a national policy on such things?

 

Copyright 2002 by A. W. Brothers and Americas Network magazine. All rights reserved.

 

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