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Comments on news posted 2009-06-25 16:08:49: Yesterday we reported how the FCC was getting close to rubber-stamping the Embarq and Centurytel merger, imposing conditions that were little more than window dressing. ..

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TKJunkMail
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4 edits
 See all the conditions for approval in Appendix C

If you want to see all the conditions imposed and/or agreed to, see starting at page 27(thru 31) of the FCC PDF:
»hraunfoss.fcc.gov/edocs_public/a···54A1.pdf

High level summary of only the broadband conditions:
The merged company expects to make substantial additional investment in broadband services. The
merged company will offer retail broadband Internet access service to 100 percent of its broadband
eligible access lines within three years of the Transaction Closing Date.

· To meet this commitment the merged company will make available retail broadband
Internet access service with a download speed of 768 kbps to 90 percent of its broadband
eligible access lines using wireline technologies within three years of the Transaction
Closing Date. The merged company will make available retail broadband Internet access
service in accordance with the FCC’s current definition of broadband to the remaining
broadband eligible access lines using alternative technologies and operating
arrangements, including but not limited to satellite and terrestrial wireless broadband
technologies.

· In addition, the merged company will make available retail broadband Internet access
service with a download speed of (1) 1.5 Mbps to 87% of the broadband eligible access
lines within two years of the Transaction Closing Date and (2) 3 Mbps to 75% of
broadband eligible access lines within one year of the Transaction Closing Date, 78% of
broadband eligible lines within two years of the Transaction Closing Date, and 80% of
broadband eligible lines within three years of the Transaction Closing Date.

· Broadband eligible access lines are defined as retail single-line residential and single-line
business access lines.
You can read more detailed info on each of the above conditions in the document.

nasadude

join:2001-10-05
Rockville, MD
need more be said?

CenturyTel deal broker and lead lawyer Sam Feder was, until recently, the FCC's General Counsel.
says it all, doesn't it?

iansltx

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Devil's Advocate

I'll bet I'm going to get a firestorm here, but

1. Embarq and CenTel merging should result in a stronger company capable of delivering better services to their subscribers, right? Or maybe making investors happy with better economies of scale. The companies didn't merge to be forced into any crazy regulations by Uncle Sam.
2. While telephone is a regulated utility, ultimately competition from cable etc. is going to drive forward progress. If you don't like the lack of DSL penetration in your area, buy a business-grade circuit and do wireless service off of it. If the service is good enough you're now in a competitive market and that's better for everyone.
3. Embarq and CenturyTel are both ILECs only. This merger, unlike the one between Sprint and Nextel, doesn't take competition out of the equation. There won't be areas where two companies who previously competed will become one.
4. Right now, CenLink can compete on three things: price, features (speed etc.) and/or reach. Since DSL can't compete against cable on speed (unless you're going up against TWC in North Carolina with 512 kbps up on their Turbo plan) the company needs to price lower, move outward or install fiber to expand. It's a public entity therefore it has to expand to serve investors. It has to compete to expand. So by that chain of reason customers will benefit, at least in the long term, since the new company has, as said before, better economies of scale for expansion.
5. Landline revenues are dropping. Embarq and CenTel know this, so they have to do something halfway decent or they'll end up with two million customers instead of seven. Agaian, in order to keep investors happy the companies have to grow somehow.

Bottom line: not sure why everyone has their panties in a wad about "big bad CenLink". Pretty surethis means good things for their customers in the long run. For all its failings, AT&T didn't come out with U-Verse until after the SBC merger.


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said by iansltx See Profile :

For all its failings, AT&T didn't come out with U-Verse until after the SBC merger.
ugh

me1212

join:2008-11-20
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reply to iansltx
"in order to keep investors happy the companies have to grow somehow."

Correct and how do they do that? 1. Expand DSL to areas that do not have it right now. 2. Expand the fiber service+IPTV to areas that have DSL already and are profitable enough. I just hope the iptv does not compel them to start capping, well it hasn't yet so we can only hope. And if they don't have a cap it can persuade people who have cable with a cap to switch.

iansltx

join:2007-02-19
Golden, CO
reply to morbo
I told you I was playing Ddevil's advocate

Personally, having telco internet with above 896k up is nice...Qwest doesn't know of such a thing.

iansltx

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reply to TKJunkMail
Re: See all the conditions for approval in Appendix C

On page 31 the broadband details are fleshed out slightly. CenLink will provide 100% penetration in three years and, by the FCC's definition of broadband, that service has to be 768+ kbps. If sat internet can't make that 768 in some areas due to capacity issues, there might be some weasel room in there for customers. In addition, for places that can't get satellite internet CenLink has to figure out some way to get at least 768k to them as a residential tier

sonicmerlin

join:2009-05-24
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reply to iansltx
Re: Devil's Advocate

You have low standards buddy.

me1212

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reply to iansltx
Re: See all the conditions for approval in Appendix C

"To meet this commitment the merged company will make available retail broadband
Internet access service with a download speed of 768 kbps to 90 percent of its broadband
eligible access lines using wireline technologies within three years of the Transaction
Closing Date.

It says they have to be wired not sat or wireless.

And

· In addition, the merged company will make available retail broadband Internet access
service with a download speed of (1) 1.5 Mbps to 87% of the broadband eligible access
lines within two years of the Transaction Closing Date and (2) 3 Mbps to 75% of
broadband eligible access lines within one year of the Transaction Closing Date, 78% of
broadband eligible lines within two years of the Transaction Closing Date, and 80% of
broadband eligible lines within three years of the Transaction Closing Date.
· Broadband eligible access lines are defined as retail single-line residential and single-line
business access lines.

If anyone cares.


TKJunkMail
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 iTunes porn app servers buried

»FCC Greenlights Centurytel/Embarq With Wimpy Conditions
technical media spent yesterday discussing the iPhone app store's first soft porn application.
That app didn't stay live long. Servers overloaded.
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The developer claims he asked Apple to temporarily suspend the sales of this app until the problem is solved. Those who already purchased the application will still be able to use it, the message to his site says.

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Karl Bode
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reply to me1212
Re: See all the conditions for approval in Appendix C

The merged company will offer retail broadband Internet access service to 100 percent of its broadband
eligible access lines within three years of the Transaction Closing Date.
That metric does include satellite.
To meet this commitment the merged company will make available retail broadband Internet access service with a download speed of 768 kbps to 90 percent of its broadband eligible access lines using wireline technologies within three years of the Transaction Closing Date.
If they're already at 87%, DSL expansion of 1% per year is less than many companies do organically. CenturyTel tells investors they're lowering Capex, so they're actually slowing down expansion over the next three years from my understanding....

Really, these conditions on expansion aren't actually saying anything whatsoever. They're just words on a page.

iansltx

join:2007-02-19
Golden, CO
Duly noted.

iansltx

join:2007-02-19
Golden, CO
reply to me1212
The other 10% can be sat or fixed wireless. Honestly, fixed wireless would be fine with me...sat OTOH sux0rz

iansltx

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reply to sonicmerlin
Re: Devil's Advocate

CenTel and Embarq tend to be in more rural areas. Not always the case, but in those areas cable generally doesn't go. Or in some situations cable is crappy. So 768k sometimes is actually a decent option...I'd much rather have 768k DSL than satellite of any speed. heck, if DIALUP went at 256k I'd pick it over satellite

me1212

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1 edit
reply to iansltx
Re: See all the conditions for approval in Appendix C

Yeah fixed wireless would work fine. I just hope they don't us sat.

EDIT: Looks like they may be useing some wireless »CenturyTel Plans To Use LTE For Rural Deployment


Karl Bode
News Guy
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reply to me1212
Re: Devil's Advocate

The problem is that expansion isn't profitable. Doing things like behavioral ads or getting into content are profitable. Serving rural America isn't in the plans for anything but the tiniest of carriers who don't need to placate investors.

me1212

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said by Karl Bode See Profile :

Serving rural America isn't in the plans for anything but the tiniest of carriers who don't need to placate investors.
Weren't they going to use LTE for rural? »CenturyTel Plans To Use LTE For Rural Deployment

beaups

join:2003-08-11
Hilliard, OH
reply to Karl Bode
And had they not merged would the expansion, specifically the rural expansion have happened faster? I don't see anything unreasonable here at all. Maybe it didn't get tech media coverage because this deal didn't deserve tech media coverage.


Time
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reply to iansltx
Re: See all the conditions for approval in Appendix C

Considering Embarq can't even deploy their highest tiers city-wide in Vegas, I don't have much hope for CenturyLink.
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Eat Me

join:2002-09-25
Sussex, NJ
Same here in NJ.

I was hoping the merger would have meant some form of FTTH, but it looks like the cable company will be getting my business for now.
Forums » FCC Greenlights Centurytel/Embarq With Wimpy Conditionspage: 1 · 2 · 3


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