[TeleChoice and the power of words - Read between the lines:]
Pat,
<<I was typing as I listened and know I couldn't get every word correct,
but I do believe TeleChoice has misquoted in places and in other places left the reader
misinformed simply by juxtaposition or by omission. Do you still have your notes and if
so, could you add anything of substance?>>
My slant on the call was perhaps a "little jaundiced" as I read the
third paragraph of the Telechoice Main Announcement.
<<..presents the carrier an opportunity to seize large portions of small
populaces. Instead of of settling for 20% of the traffic, MCI can lock in
95-100% of a towns traffic because it is the only broadband option in town.
MCI services are wholesaled to the municipality clients as part of this
offering.>>
My Translation
This is MCI's main objective. Like a fox in sheep's clothing they have
dressed up a "high tech offer for rural America". MCI will have no
competition in these areas because the local power company, municipality &
telco will be in the selling of unbranded MCI services.
Telechoice
<<<<MCI continues to sing the praises of DSL. In a conference call to reporters
outlining new plans for its rural America broadband networks, Gerdelman says DSL is a
'marvelous technology once you get access to the unbundled loops.' >>>>
My Translation
MCI essentially has a "free access" to a customer through the resale
agreement. If this were in RBOC territory, MCI would have to pay a
fee for "unbundling the RBOC local offer ...the copper to the home".
There is a price to that. In this case MCI does not have to pay...but
then again MCI may not be the ones collecting the $100/mo for DSL service.
It may be the power company or municipality. Don't get caught up in
this "unbundled loop" phrase..it is simply the negotiation between a
carrier and a Long Distance Company. You may see some agreements by 3rd
quarter which will allow this to happen. Once this happens, MCI can
sell in a larger city and receive the total revenue stream (so can an
RBOC).
From a 3/19 MCI Press Release - MCI ...local service for Denver Area
--------------------------------------------------------------------
<< MCI began to develop it's own local switched
service newtworks across the country..by the end of 1997 MCI will have invested
$1.7 billion in this initiative.
<< the company offers local service over its own fiber optic networks
and digital switching facilities in 20 major markets throughout the
country. In addition, MCI offers value added local service to business and
residential customers throughout Pacific Bell territory in California
through RESALE agreements with the local telephone company monopoly.
Similar service will be available in Illinois and New York in the next
few months>>
My translation or tie in to the Iowa Announcent
-----------------------------------------------
They can offer service to businesses in 20 markets. MCI has a different
network topology in differnt cities (or will have based on agreements with
the RBOC's). They would like to trial DIFFERENT methods of high speed
connectivity to customers in Iowa...notice that the first two were HFC &
not ADSL...so maybe they are initially more interested in connecting to MCI
business customers where FIBER in the city is installed. Now when the
RBOC agreement for unbudled loops in is place..they will sell ADSL to
residential homes all day.
Okay .., enough opinion...other notes:
--------------------------------------
* ...initially, services offered will include: local, long distance,
high speed internet access, distance learning & security systems. Next
year you will see video implemented.
* service will be offered where NIPCO (the power company) has a fiber
ring.
* general availablity of service will be Q3 '97.
* Utilities are interested ...because this is a "good" opportunity to
provide local service (MCI sells to the Power Company).
* "very gray" dicussion on cable...MCI may add a cable content player to
"resell to the Iowa contingent".
* MCI is not investing any $$$ in swtiches ...the infrastructure is there.
Last comment, MCI has 13 different vendors..so they can test all the
various connectivity methods ...for eventual deployemnt in RBOC areas.
As I said, I was more looking at the "distribution scheme" and the "why"
during the conference call.
Hope this helps,
Bob |
