Also remembering that phone and electric rates got regulated and had established tariff rates. Phone companies were not allowed to cross subsidize their data networks from the voice network revenues. Cable companies did not suffer from that restriction. Since CATV was a private enterprise they were not REQUIRED to build out everywhere. If there were not enough homes per linear mile to meet their business case, they simply didn't build and nobody forced them to. Many of the areas getting subsidized now do not meet good private business models for the return on investment. If you bring government money/grants and loans in to the mix then the business model can look better to deliver fiber/services to areas that do not support the private business model. Cable companies are just as eligible to apply for these new loan and grant programs just the same as phone, electric and even WISP's should they decide to do so. That is why you may see some cable companies now using public money for build outs.
Thank you, Brian Webster www.wirelessmapping.com -----Original Message----- From: AF [mailto:[email protected]] On Behalf Of [email protected] Sent: Thursday, January 9, 2020 1:01 PM To: AnimalFarm Microwave Users Group Subject: Re: [AFMUG] Cable TV Monies 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. > -- > AF mailing list > [email protected] > http://af.afmug.com/mailman/listinfo/af_af.afmug.com > > > > -- > AF mailing list > [email protected] > http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
