This nation has a history of fostering universal service for utilities. The
Rural Electrification Administration was created so farmers could have a
light bulb in the milking shed. Once the power was rolling it was a simple
thing to also add phone to it.
Phone went from open wire lines attached to the power poles, to aerial and
underground copper cable party lines, to larger cables with single party
service, to dial up and DSL on copper to fiber optic cables carrying phone
and data.
Pretty much the whole nation has a Provider of Last Resort (POLR) designated
for every habitable area. Those areas are served for Incumbent Local
Exchange Carriers and they have a duty to serve. No matter what the
expense, if the hermit on the mountain wants a phone he gets a phone. It is
a utility. The universal service fund replaces what was the old AT&T line
haul agreements that originally subsidized service in rural areas with long
distance revenue. Once divesture hit that whole thing got changed to a
system of explicit subsidies. The USF and grants still service to provide
telephone service to every last barn and sage brush irrespective of whether
or not there is a business case to do so.
Those that hold CPCNs (Certificate of Public Convenience and Necessity) to
serve a geographical area as an ILEC and POLR have the golden ticket. There
may still be a few unserved areas where you could also become an ILEC. Or
you can buy one. They have a pretty sweet deal.
TV has never been considered a utility.
-----Original Message-----
From: Matt Hoppes
Sent: Thursday, January 9, 2020 10:47 AM
To: AnimalFarm Microwave Users Group
Subject: Re: [AFMUG] Cable TV Monies
So why are we not seeing the same thing with fiber optic then? Why are we
needing USDA grants? Here in PA much of rural areas are covered by Zito
Media that was various smaller cable companies.
On Jan 9, 2020, at 12:43 PM, Ken Hohhof <[email protected]> wrote:
I think it was all private money. Lots of little cable companies that
were acquired to form the big ones we have now. For example, Comcast in
my area used to be Jones Intercable:
https://en.wikipedia.org/wiki/Jones_Intercable
I don't know of any cable TV systems in very rural areas. They typically
cover towns but not the outside areas. Not profitable to run coax where
there aren't a lot of people. Franchise agreements might have required
them to cover the entire incorporated area of the town, otherwise they
might not even extend to the edge of town.
I'm guessing cable TV systems were pretty profitable, hence lots of people
started them. And originally cable franchises were like a monopoly, you
didn't have to compete with 10 other providers on price, and it was an
asset you could sell. Even today, the big cable companies have an
unwritten agreement to mostly not compete in each others territory.
In my WISP service area we have a small cable company that covers 4 towns.
Not the rural areas, just the towns. It is basically owned and run by one
guy, I think the cable system was bankrupt and shut down for several years
before that.
www.heartlandcable.com
There were a number of cable TV "magnates", the most famous maybe being
John Malone, aka "The Cable Cowboy".
-----Original Message-----
From: AF <[email protected]> On Behalf Of Matt Hoppes
Sent: Thursday, January 9, 2020 11:13 AM
To: [email protected]
Subject: [AFMUG] Cable TV Monies
I know there are USF funds that have been used to build out internet and
phone and other funding for electric.
How did the early cable systems get funded? I’m not necessarily talking
about associations although certainly to some extent, but like full on
analog cable TV systems in very rural area.
The cost of copper is worse than fiber. How were these systems bank
rolled? Sometimes by a single private person.
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