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Can the FCC Offer Up Some Real Reform?

Source: gigaom.com

Last week, when the FCC published an order aimed at halting the collection of and reporting on the quality of telephone service on a nationwide basis, we were pretty disappointed, as it came off like the agency was just throwing in the towel on real regulation and reform. Since one of the reasons behind the FCC decision is that the data is available at state utility commissions, I surfed and called around to the commissions at the five most populous states to see how difficult it is to compile and compare quality of service data.

My conclusion? It’s no picnic. Beginning with my home state of Texas, it took a phone call to get a basic report faxed over (they can’t email it). The report offers the total complaints registered against telecommunications companies vs. those lodged against electrical companies and lists the top offenders in each category. More details require a Freedom of Information Act request and a wait of up to 10 business days. California required a phone call and some back and forth to get some information, which includes data on the number of repairs and the amount of time a customer waits for refunds. A week later, I’m still waiting to hear back from the commission in New York.

Illinois publishes its quarterly quality reports on its web site, and tracks information ranging from length of time services were out and whether credits were issued for no service to the amount of time it took to get an operator on the line. Florida also published the reports on its web site, but the most recent one for AT&T (the company I was trying to track) is from 2007. Florida tracks a lot of stuff (their reports are about 24 pages compared to one in other states) from the timeliness of repairs and to how long it takes to get a number listed in directory assistance.

So compiling and comparing these reports to get a measure of how network quality and customer service complaints are settled is not all that easy and may not even be doable, since the information might be old and may not match across all states. At the least, it would at least take multiple FOIA requests and weeks rather than days. My research covered five states where about 36 percent of the population lives, but an apples-to-apples comparison on a nationwide basis seems to be impossible.

Another FCC objection to collecting this data is that it only covers access lines, the wireline telephone service rapidly going out of style in many households. I agree with the FCC that this data is bordering on obsolete, but instead of ditching it, the federal government should really expand the regulatory oversight of other voice services, from wireless to cable VoIP.

The difference between regulation of various broadband delivered services from video to voice should be eliminated, and it should be done at the federal level. Cable companies and telecommunications firms should not be held to different standards when it comes to reporting quality data, getting local franchise agreements for deploying television services or even requirements to serve rural areas. There will be plenty of fights over which questions to ask given how different the cable and telco networks are, but at the end of the day both types of companies are offering video, voice and data over broadband. They should play by the same rules.

Published on September 11th, 2008 under , , , , , , , , , ,

The GigaOM Interview: Qwest CEO & Chairman Edward Mueller

Source: gigaom.com

This past week I got a chance to catch up with Edward Mueller, CEO & Chairman of Qwest, the smallest of the Baby Bells, which competes with its bigger brethren, AT&T and Verizon, in the long-distance, business and government markets.

Mueller, who at one time was CEO and president of Ameritech (now part of AT&T), replaced Richard Notebaert in August 2007.

Since then he has been quietly trying to shore up the Mountain Bells, forging alliances with the likes of DirecTV and making plans for a broadband future. My overall impression from our conversation was that Mueller is being very cautious and is loathe to making sudden moves.

From expanding data center capacity to adding new business lines, Qwest is staying true to its financial realities. The company, which posted $13.8 billion in sales for the full-year 2007 period wants to be “nimble & efficient,” Mueller explained. Here are edited excerpts from our conversation:

Om Malik: Your first few months at Qwest have been awfully quiet. What have you guys been up to?

Edward Mueller: We have laid out a plan and are finally putting meat on the bones. We want to be nimble and efficient. We are focused on our three core businesses — wholesale, small business and consumer. We are now one of the three picks for the government network (Networx), so I like our position. If we can get a wireless partner, we can do well.

OM: Why partner when you can buy yourself a wireless company? Sprint and Alltel are two that come to mind.

MUELLER: We are not looking to buy a wireless company at this time, and frankly buying Alltel and Sprint will be a reach for us. All we want to do is partner with a national wireless player where we can rebrand and remarket their service to our customer base. We are ambivalent about the technology but we want a partner with retail presence.

OM: What are your thoughts on wireless broadband? Also why not buy or build your own wireless broadband network?

MUELLER: Wireless broadband is going to be the biggest part of wireless and voice will ride on this network. I think it is going to be a robust network. But to play in this business your network has to be national and that is very expensive for us. We are a good partner for others for providing access to customers. That is what we are good at.

OM: What are your broadband plans? Any fiber-to-the-home plans?

MUELLER: We are expanding our FTTN network, and will soon offer 20 Megabits/second and eventually 40 Megabits per second using pair bonding. We are building this out and spending $300 million on it. The trial we are running in Colorado Springs has had a good uptake and customers are paying for the higher speed service. (Editor’s note: At a meeting with Wall Street analysts, Mueller said Qwest can make a billion dollars from broadband.)

OM: What are your video plans?

MUELLER: We are not going to offer broadcast television, but instead will offer video on demand and Internet video. We have a partnership with DirecTV and it is our desire that we provide uplink service for their video-on-demand service.

OM: What do you make of the current housing downturn? Qwest’s geographical footprint was where there was a housing bubble — Phoenix and Colorado, for example. Is this impacting your business?

MUELLER: We don’t comment on the financials. I think the economy is cyclical and I don’t think we have to change too much. We have a plan and we are going to execute against that.

Published on March 17th, 2008 under , ,

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