In The News
Internet Firms Join Forces
03/11/10
Story from www.dailymail.com
by George Hohmann
Daily Mail Business Editor
CHARLESTON, W.Va. -- Telecommunications companies that are normally at each other's throats have united over concern that they won't be treated fairly after Verizon builds a broadband network in West Virginia with $126 million in federal stimulus money.
The concern surfaced Wednesday at a meeting of the West Virginia Broadband Council. The council is charged with getting broadband service to the estimated 20 percent of West Virginia households that don't have it. The council is chaired by Kelley Goes, who heads Gov. Joe Manchin's effort to have the state wired border-to-border for high-speed Internet.
Last month, the governor's office was awarded a federal grant to build a broadband network that will "provide a backbone to community anchors," such as schools and libraries. The network also is supposed to provide the "middle mile" that private companies can tap when they build last-mile service to residential and business customers.
The state plans to use Verizon - its current vendor - to build the network. When construction is finished, Verizon will own it. And there's the rub.
FiberNet and other telecommunications companies have complained for years about the difficulty they have dealing with Verizon, which is the dominant telecommunications company in the state. Now they're concerned that the broadband network the state directs Verizon to build won't be accessible or, if it is, won't be competitively priced. They also question whether Verizon will build a network that will be useful over the long term.
FiberNet, Citynet, nTelos and seven others have formed the West Virginia Broadband Coalition to express these concerns. They presented a four-page paper to Goes and the broadband council on Wednesday.
Goes said she met with Citynet President Jim Martin and the coalition's lawyer, Brian Helmick, on Monday and previously met with representatives of the cable industry and others.
"Everybody on the council realizes the concerns," she said.
Since being awarded the grant, the state has gone back to schools, libraries and others to see what's changed. Some have already found other ways to obtain broadband service and "some now think they need broadband that didn't previously think they needed it," Goes said.
"When you're talking about the specifics regarding access and pricing and the fiber count in cable, what's very helpful is to get questions in detail. We're very eager to hear from everyone. Let's come up with the best architecture and solution that we can. That's what this council is about."
Helmick, speaking for the coalition, asked for a 60-day pause "so everyone can understand what the state contract provides, the Public Service Commission provides - so questions can be answered and we can come back with recommendations on what can be done within the context of the existing contract and grant and decide the best way forward."
Goes pointed out that the federal grant requires the network be substantially completed in 24 months and finished in 36 months. A 60-day pause would reduce the time available for substantial completion to 22 months. "I don't think the governor would like to put the funding in jeopardy without concrete reasons," she said.
Martin noted that Citynet sold a division two years ago that was focused on middle-mile deployment. Citynet's application for $34.5 million in first-round federal funding was denied. He said the company intends to apply for second-round funding.
"I would like to make sure that everyone is aware that if this (Verizon) contract goes through and at the end of the day Verizon owns the assets without any requirement to provide open access, the state will be at a significant disadvantage," Martin said. "It will be an absolute tragedy. We need to do something now, before we make a mistake that we'll all regret down the road.
"One hundred and thirty million dollars is going to a company that's done nothing for the betterment of broadband in our state. We should not allow this to get ramrodded through. The companies in this coalition in the past always competed. But we've come together in seven days, formed a coalition and issued a position statement. This council should do something to make sure we don't make a mistake. We should put on a delay that will not harm the end goal," he said.
"The funds are with the governor's office," Goes said. "The council is not in a position to delay the deployment of funds." Goes said she was willing to put all of the Manchin administration's key players "at everyone's disposal," and said the interested parties are a small enough group, "we can get together quickly.
"We must move forward with all deliberate speed," she said.
It is premature to talk about access and pricing before anything is built, she said.
Council member Lee Fisher of Little Birch said he's heard that Verizon may have already placed orders for equipment that don't match up with the technical aspects outlined in the broadband coalition's position paper.
"How do we as a council know they are buying the right stuff?" he asked.
Goes said, "We as a council don't know. We have not put the order in."
Fisher said, "Some firms are gung-ho to get going and if orders are put in, they may end up short or have too much."
"I understand your concern but I'm not sure we're there," Goes said. "Nationwide, there's been talk that there may be a run on certain types of materials and equipment. But I think that's separate from the issue you've addressed. We want to move forward because we're an early awardee of a statewide project."
"Is there any reason not to have the governor aware of the position paper?" Fisher asked.
"The paper was distributed to the governor's office and the Congressional delegation," Goes said. "We have no reason to be hiding the fact that people have questions and we're willing to work with them."
Mike Friloux, Citynet's executive vice president of business development, said, "Fundamentally, I think we're in agreement: We need to utilize taxpayer dollars to get the most benefit for the state. There are a couple of nuances in the deployment of assets. One is, when you deploy fiber-optic cable, the cost is in the planning and construction, not how many strands of fiber are laid. We want the state to not just say we'll use (Verizon), but for the state to engage Verizon to make sure we're building a network to benefit the most people."
"That's being done," Goes said, although the state hasn't got down to specifics yet, like how many strands of fiber must be laid.
"I understand everybody's concerns," she said. "We'll sit down and listen. But let's get the details. This is a huge opportunity for everybody to work together. Will everybody be happy at the end of the day? I can't promise that. It seldom happens in business. But we can do all that we can. We could bring in a third party to look at all of this - there's administrative funding in the grant. We know this is a huge opportunity and intend to do this for the benefit of the state."
Friloux said, "We're in a Catch-22 because we don't see the details."
Goes said more information will be available in a few weeks when "we'll know all of the schools and libraries that want to be connected, all of the long runs and short jumps that will need to be built."
Friloux said, "Fundamentally, we agree. We're talking about how do we get to the end result that is what we all want."
Goes said, "The only way is to get down to specifics. We've instructed them to maximize availability. We want this to provide infrastructure to communities. Your concerns have been addressed in the philosophy of what we're doing with them. We've conducted outreach to get input. We seek input. This is not something being hidden. Let's start so deployment can begin where there's 100 percent agreement. We have a very aggressive timeline for getting this done. It doesn't help anyone who wants access to slow down access."
Council member Jan Fox suggested creating an Internet site that furnishes a way people can ask questions and where answers to frequently asked questions are posted.
"That's a good suggestion," Goes said. The state has been using its stimulus funding report Web site www.recovery.wv.gov for this. "We can certainly expand our presence on that site," she said.
"When you get to the point after you collect information, do you have any objection to having that reviewed?" Friloux asked.
"We've stated that our position is multiple heads are better than one," Goes said.
<< Back to Press Releases
|
|
|
About Us
Citynet is a growing regional, full service provider of communications services...
Mission Statement
Citynet's past, present and future is linked by technology and integrity....
Executive Staff
Citynet's executive staff...
Certifications
Citynet's certifications...
In The News
Citynet in the news and Citynet newsletters...
Customer Surveys
Citynet's past, present and future is linked by technology and integrity....
Employment
Citynet is currently seeking to fill the positions ...
Referral Program
With attractive payouts and robust features...
Our Network
Citynet has implemented a state-of-the-art network architecture that leverages cost-effective and scaleable DWDM technology. ...
Citynet Logo
Please reference Citynet's logo standards and guidelines prior to using the Citynet logo...
Tariffs
Descriptions, Regulations, Rates and Charges applicable to services...
|
