VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA BROADBAND LAW

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: December 2, 2004 11:54:27 AM EST
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA 
BROADBAND LAW
Reply-To: dewayne () warpspeed com

VERIZON CONCESSIONS TIP BALANCE IN FAVOR OF PA BROADBAND LAW

There's plenty of bad things in the legislation, but will anything good
come from the bill signed by Pennsylvania Governor Edward Rendell (D) 
that
restricts municipal broadband networks? Possibly. 1) To protect 
affordable
phone service for low-income households, the law requires incumbents to
automatically notify residents who apply for state public assistance 
that
they are eligible for an $8 discount on monthly phone bills and up to 
$100
toward installation charges. The bill also allows these low income
subscribers to buy services such as caller ID or call waiting. 
Previously,
these customers weren't allowed to have these services, and this
restriction was considered a significant impediment to Lifeline 
enrollment.
2) The bill requires Verizon and other incumbents to provide broadband
service to K-12 schools at 30% off the market rate or, if it's less, the
actual incremental cost of providing service to the buildings. 3) It 
also
established a $10 million education technology fund to help schools pay 
for
the equipment needed to take advantage of their broadband connections. 
4)
Verizon promised to sell broadband equipment to schools at a discounted
price equal to cost plus 5%. And it agreed to sell its managed network
services to schools at a 20% discount from list. Rendell said the law's
discounts and Verizon's commitments would represent at least $350 
million
in broadband savings to schools the next 10 years. 5) The law also sets 
up
a process by which the state Dept. of Community & Economic Development
(DCED) can designate specific rural communities to go to the head of the
deployment queue to serve local economic development projects. Under 
this
provision, incumbents must provide broadband service to DCED-designated
communities within 12 months of the request from that agency. 5) Verizon
promised Gov Rendell that, regardless of what the federal jurisdiction 
may
do with regard to unbundling, it will continue to offer unbundled 
services
to competitors up to 40% off list.

[SOURCE: Communications Daily, AUTHOR: Herb Kirchhoff, Susan Polyakova]


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