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ITown is gearing up to deliver broadband to your town

By Leslie Cauley
USA TODAY

07/25/2005

Find this article at:
http://www.usatoday.com/printedition/money/20050725/itown25.art.htm


NEW YORK — Veteran telecom executive Brian Thompson hopes to do for broadband what the Bell System did for traditional phone service more than 100 years ago: Bring it to the masses.

Thompson's company, iTown Communications, is launching a program aimed at bringing “ultra” broadband to rural America. How fast is that? Try blinding — 100 megabits a second. Most residential offerings today top out at about 4 or 5 megabits.

The USA is currently ranked No. 12 in terms of broadband deployment, trailing such countries as South Korea and Japan, where 100-megabit speeds are common. By offering “big” broadband the USA can catch up, Thompson believes.

“These are the essential facilities we need to move ahead as a country,” says Thompson, a former MCI and Qwest senior executive.

West Virginia is the first test case. Last week, iTown announced agreements to team with a couple of communities to bring broadband — voice, data and video — to every resident who wants it. The initial phase will focus on the Beckley-Bluefield and Wood County areas.

ITown is putting up $30 million to help fund the project. The rest will be raised through state revenue bonds, Thompson says. “We expect lots of states to go down this road,” he adds.

How it works: ITown — short for Interactive Town — will form partnerships with communities across the USA. Those partnerships will set up separate “special purpose” ventures to oversee construction of the actual networks. The new high-speed pipes will be available to all comers — from such Goliaths as Verizon to tiny upstarts looking to get their foot in the door — that would lease access and provide services.

The idea, Thompson says, is to attract broadband players to rural America, while also providing a launching pad for new services, from home-monitoring systems to slick high-definition-TV offerings.

Paul Glenchur, an analyst at Stanford Washington Research Group in Washington, D.C., predicts public-private partnerships will become commonplace as the demand for broadband heats up and rural areas try to keep pace.

“You have to give communities the flexibility to deploy (broadband) to make sure that their citizens have access” to new services, Glenchur says.

There are skeptics. Mark Polen, executive director of the West Virginia Cable Telecommunications Association, notes that 70% of the state's population already has access to broadband. He's also doubtful that many people want, or even need, a 100-megabit service.

Keith Burdette, president of the local business roundtable in West Virginia's Wood County, has a different view.

In his hometown of Parkersburg, he says, residents can pick a dial-up Internet service from Verizon or a cable modem service from Charter. A 100-megabit service via iTown, he says, would profoundly change the competitive equation.

“This is all about the consumer — expanding opportunities and choices, and hopefully assisting in a competitive marketplace with keeping the prices down,” he says. “We're also hoping that fully wired community will be an attractive asset as we market our wares to businesses around the country that might want to locate here.”


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu


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