Entry Into Telecommunications: Rural ILEC Perspective

The views and opinions expressed in this submission are solely those of the authors and do not represent the views of the Department of Justice.

Slide 1

Entry into Telecommunications

Rural ILEC Perspective

Jill Canfield
Senior Regulatory Counsel
NTCA
jcanfield@ntca.org

Slide 2

Changing Face of Telecommunications

Slide 3

Rural Youth

• 9 out of 10 have mobile phone
• Pay up to $50/month for service
• Consider mobile service “essential”
• 90% have Internet connection
• Primary use is email
• Consider broadband access “essential”
• Half have more than 100 channels of video
• No brand loyalty

Slide 4

Independent Rural Carriers

• Independent Rural carriers are progressive:
  • Rural telephone companies were the first to deploy digital switching
  • 97% offer custom calling features
  • 92% offer Internet
  • 84% offer long distance
  • 55% offer mobile wireless service
  • 29% are CLECs
• Rural Carriers are community based companies with local decision making
• Rural Carriers are strongly committed to public service
• Rural Carriers have a reputation for quality service

Slide 5

Nonmetro Counties

[D]

Slide 6

Advancing the Communications Revolution

Copyright MapInfo Corp
1999 All Rights Reserved

[D]

Slide 7

Competitive Pressures

• Minutes of use declining
• Increased emphasis on broadband “pipe”
• 87% face broadband competition from at least one other provider
• Most face competition only in cities and towns, but 47% throughout service territory
• 54% “very concerned” about cable offering voice

Slide 8

BROADBAND MARKETING PROMOTIONS

[D]

Slide 9

Members Offering Video Service

[D]

Slide 10

BARRIERS TO BROADBAND DEPLOYMENT

[D]

Slide 11

BARRIERS TO BROADBAND DEPLOYMENT: 2003-2007

[D]

Slide 12

BARRIERS TO BROADBAND DEPLOYMENT: 2003-2007 (con’t.)

[D]

Slide 13

Key Issues

• Universal Service
• Access to video content
• Compensation for use of the network
• Regulatory certainty
• Unfunded mandates