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eBook details

• Title: From Land Lines to Broadband: The Shifting Business Model (Company Overview)
• Author : Masha Zager
• Release Date : January 01, 2010
• Genre: Business & Personal Finance,Books,Professional & Technical,Engineering,
• Pages : * pages
• Size : 62 KB

Description

For the last decade, the clock has been ticking on the traditional rural telephone business model, with its heavy reliance on voice revenues and support mechanisms tied to voice. Now, the hands seem to be approaching midnight. The number of access lines continues to fall sharply, driven by rural depopulation in some areas (about half of nonmetro counties declined in population between 2000 and 2005, according to the U.S. Census Bureau), by households giving up second lines they once used for fax machines or dial-up Internet access and, most significantly, by competition from mobile phones, cable telephony and Internet-based communication services. By the first half of 2009, 22.7% of American homes had only wireless telephones, according to the Centers for Disease Control and Prevention, which tracks the telephone status of its survey participants. Traditional support mechanisms, too, are in danger of eroding. Reform of the Universal Service Fund (USF), intercarrier compensation and special access has been on the table for years; the FCC's National Broadband Plan Policy Framework released in December addresses all these programs, raising the possibility of cutting or redirecting them in ways that would spell major changes for rural telcos. "No one anticipates that the USF in total will grow, and more likely it will decline," said consultant Leo Staurulakis, executive vice president of John Staurulakis Inc. (JSI) (Greenbelt, Md.).

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