----- Original Message ----- 
From: "Chuck Bartosch" <ch...@clarityconnect.com>
To: "WISPA General List" <wireless@wispa.org>
Sent: Saturday, October 10, 2009 9:43 AM
Subject: Re: [WISPA] Barriers to WISP growth


>
> On Oct 9, 2009, at 9:18 PM, Marlon K. Schafer wrote:
>
>> I didn't apply for two main reasons.
>>
>> 1: they want the whole company and don't tell you when (if ever)
>> you'll get
>> it back.
>
> You can't sell the company without approval for 10 years. The general
> terms of that approval were that you couldn't be asking for so little
> for the company that it resulted in a windfall for the buyer and the
> buyer had to maintain the terms of the contract you sign with the
> government to get the money.

I keep hearing that, but I don't remember seeing it anywhere in the NOFA. 
It's not in the ARRA, and I asked that specific question in Billings.  I got 
a shrug of the shoulders.

>
> It isn't unreasonable. The final terms of this requirement are worked
> out in the contract you negotiate once you're "awarded" the funds (you
> don't actually get anything just because you won the award...you have
> to sign a mutual contract first).

As I understand it, it's far more than that.  You can't sell any assets 
without government approval either.  Want to trade in that old install van? 
Make sure you clear it with the "boss" first.  What about old gear that you 
upgrade from?  Just think about how hard it would be to get anything done if 
you had to ask permission for nearly all of it, from a desk jocky, in DC.

>
>> 2: My areas are already covered better than what's allowed under the
>> grants.
>> We've done a good job in the past and our reward is government funded
>> potential competition, gotta love that one.
>
> Yeah, having government funded competition sucks. So does having
> competition that is cross-subsidized by phone service revenues. Or
> television revenues. Or investors that don't know what they are doing.
>
> In the end there isn't anything really special about the funding
> coming from the Feds versus many other sources we have to compete
> around. It hurts the same either way.
>
>> Oh yeah,
>> 3: If you take Obama money you are required to wholesale access to the
>> network at fair and reasonable rates.
>
> You're said this before and you've been told before this is not the
> case.

Yest it is.  It's in the NOFA.  You have to open your network at "fair and 
reasonable rates".  I asked about this in Billings too.  Again, I was told 
to submit the question in writing as there is no definition of fair and 
reasonable already established.

>
> You are required to support Interconnection at reasonable rates on the
> part of the network you built with government funds. For a small
> provider that's an almost completely meaningless requirement.

Really?  Lets say I do a county wide network.  I double my coverage zone, or 
more, with grant funds.  I now have to allow "interconnection", wholesale, 
access to anyone that wants it, in at least half of my network.  What does 
that do to my net revenue there?  We don't know because we have NO guidance 
as to what they'll force us to sell services at to our competitors.

>
> For large multi-region buildouts, that's got some meaning.

Not at all.  If ANY of my near by competitors get grant money to install 
systems, I'll be using the interconnection requirement as a way to expand MY 
coverage at NO cost to me.

>
> You were NOT, however, required to support wholesale. That's a bonus.

Um, what's the difference between interconnection and wholesale?

>
>>  Anyone know what that really means?
>> Me neither.  I figure if someone comes here I'll just make them sell
>> to me
>> at good rates and I'll not have to deal with the grant hassles.
>
> You can interconnect with their network. If they are small it
> presumably means you set up a direction connection with them so that
> your traffic goes directly to them and vice versa without needing to
> transit to the outside world.

Hmmmm

>
> Interconnection wasn't defined really well in the NOFA however. It
> could also mean another provider could ask to use your network to
> reach the outside world. However, you get to negotiate for that access
> on reasonable terms, which means you could make a profit on whatever
> it is you provide them. Unless you agreed to arbitration (an option in
> the application), you couldn't be forced to do it really (since it'd
> be easy enough to set unworkable terms). A starting point for the
> negotiation would probably have been "what would access cost from the
> big guys" to your location? since that's presumably a reasonable place
> to be price wise.

Unworkable terms certainly don't seen "fair and reasonable" to me.

The whole thing is just sooooo convoluted, open to multiple interpretations 
etc.  Shrug

Anyway, the original question was why *I* didn't apply.  Those are still my 
answers.

marlon

>
> Chuck
>
>
>> marlon
>>
>> ----- Original Message -----
>> From: "Tim Sylvester" <t...@avanzarnetworks.com>
>> To: "'WISPA General List'" <wireless@wispa.org>
>> Sent: Thursday, October 08, 2009 9:42 AM
>> Subject: Re: [WISPA] Barriers to WISP growth
>>
>>
>>>> Stimulus: I don't believe in it and did not apply.
>>>
>>> I want to understand people's opposition to the Broadband Stimulus
>>> programs.
>>>
>>>
>>> Rick and other people opposed to the stimulus, can you expand on
>>> why you
>>> don't believe in the Stimulus and why you didn't apply? Are there
>>> things
>>> you
>>> think the government - FCC, congress, etc. - could do to help ISPs
>>> and
>>> expanding broadband?
>>>
>>> Tim
>>>
>>>
>>>
>>>
>>>
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>>
>>
>>
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>
> --------------
> Chuck Bartosch
> Clarity Connect, Inc.
> 200 Pleasant Grove Road
> Ithaca, NY 14850
> (607) 257-8268
>
> "When the stars threw down their spears,
> and water'd heaven with their tears,
> Did He smile, His work to see?
> Did He who made the Lamb make thee?"
>
> From William Blake's Tiger!, Tiger!
>
>
>
>
>
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