Many rural LECs are not required to provide unbundled network elements.  As a 
network provider you can resell their service but they are not required to 
provide unbundled elements necessary to compete against them as a facilities 
based provider.  So, for example, in Alamo Tennessee or Northern Wisconsin you 
can get a T-1 from a competitive carrier that resells their services but you 
cannot get competitive POTS service.  You can buy DSL service from anyone but 
they are reselling the RLECs DSL access services not just running on their 
cable pairs.  One of the biggest players that specializes in being a rural LEC 
is Frontier Communications.

Yes, there are wireless carriers and satellite providers but especially in 
rural areas they are not a real viable alternative for high speed data since we 
know the characteristic of satellite service and WISPs have the same density 
problem in providing service in rural areas.  It is hard for a WISP to be 
profitable when you only have a handful of customers per mile.  Same formula, 
low density, long distances, high infrastructure per customer cost for the WISP.

Steven Naslund
Chicago IL

-----Original Message-----
From: Frank Bulk [mailto:frnk...@iname.com] 
Sent: Sunday, March 23, 2014 10:08 PM
To: Naslund, Steve
Cc: nanog@nanog.org
Subject: RE: Level 3 blames Internet slowdowns on Technica

Not sure which rural LECs are exempt from competition.  Some areas are 
effectively exempt from facilities-based (i.e. wireline) competition because 
it's unaffordable, without subsidy, to build a duplicate wireline 
infrastructure.  There are also wireless carriers and WISPs the compete against 
RLECs, as well as satellite providers.  I'm not aware of any exclusivity.

Frank

-----Original Message-----
From: Naslund, Steve [mailto:snasl...@medline.com]
Sent: Sunday, March 23, 2014 9:00 PM
To: Joe Greco
Cc: nanog@nanog.org
Subject: RE: Level 3 blames Internet slowdowns on Technica

<snip>

In a low density area you can never fund a build out which is where universal 
access charges came from and the reason that rural LECs are exempt from 
competition.  In return for building a network that is not profitable easily 
they get exclusive access to sell services on it to give them a chance.  Will 
your NRC be reasonable anywhere outside a major metro area?

<snip>

Steven Naslund
Chicago IL





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