I'll be there. But if we keep getting all this good feedback from everyone, 
there wont be much left to debate :-)

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- 
From: "Forbes Mercy" <forbes.me...@wabroadband.com>
To: "WISPA General List" <wireless@wispa.org>
Sent: Friday, May 28, 2010 4:39 PM
Subject: Re: [WISPA] How the FCC Proposes the Regulate Broadband


>I nominate Matt Larsen to serve on the panel for USF at the Regional
> Meeting! Wouldn't it be interesting if Tom was on there to?  I'd go just
> for the debate!
>
> On 5/28/2010 12:39 PM, Matt Larsen - Lists wrote:
>> Tom,
>>
>> Thank you for asking your questions - I have some awesome answers for
>> you.....
>>
>> 1)  Alaska.   Alaska does indeed have an infrastructure problem.
>> Alaska also receives an enormous amount of federal support already along
>> with substantial revenues from their natural resources, mainly oil and
>> gas.  These Americans would not be left out in the cold - communication
>> wise - if they took some of their massive piles of money and built out
>> their infrastructure.   Right now, the Alaska Permanent Fund -
>> http://en.wikipedia.org/wiki/Alaska_Permanent_Fund - has 28 Billion
>> dollars in it, and is primarily used to pay an annual dividend to Alaska
>> residents.   I'm pretty sure that money would go to better use if Alaska
>> used that to pay for their communications infrastructure needs instead
>> of expecting the residents of the lower-48 to pay for it.
>>
>> 2)  Rural Telco Failure.   I have a really hard time believing that a
>> rural telco could fail, but I guess it could happen.   In that scenario,
>> I would suggest that the government set up some kind of a trustee
>> operation that maintained the operation of the telco until a buyer could
>> be found.   I live in a very rural area, and the majority of the rural
>> ILECs here are swimming in money from USF, and have very successful
>> "unregulated" subsidiaries that operate outside of the normal regulatory
>> environment.   With all of the recent advances in voice switching and
>> remote broadband deployment, the residents of a community with a
>> failling telco would be better off in the long run if the telco was
>> allowed to fail and someone else was able to come in and rebuild with
>> more modern equipment.   This is a little tricky, but could be addressed
>> in a more efficient manner than what we are seeing now.
>>
>> 3)  Mobile Phone Coverage.   There is a really simple answer to this
>> one.   There are buildout requirements in cellular licenses that the
>> federal government grants to mobile carriers.   They have been
>> effectively lobbbying to get USF money to build out and meet those
>> requirements.   Even so, rural cellular coverage is awful.   USF has
>> been the carrot to incentivize rural wireless buildouts - now it is time
>> to try the stick.   Rural carriers that don't build out, or only build
>> out the areas with with Interstates and highways (for roaming traffic)
>> without building out to the sparsely populated rural locations lose
>> their licenses.   This will lower the value of the licenses in rural
>> areas to the point where smaller competitors could feasibly buy licenses
>> and compete.   It would also substantially reduce the amount of spectrum
>> warehousing that goes on in rural areas.   No need to throw money at
>> this problem, just enforce the existing laws and modify the requirements
>> so that there is less "redlining" of the more profitable portions of
>> their license area.
>>
>>    I think that the idea of pitting the New Jersey delegation against the
>> Alaska delegation is fantastic.   Why should people in NJ be paying for
>> phone services in Alaska?
>>
>> I would like to close with an illustration of what goes on with USF.
>> USF is attached to every access line, and looks pretty innocuous on a
>> single line phone bill.   However, when I was running a dialup ISP and
>> we had several hundred lines coming into our system, that USF cost was
>> in the $3000/$4000 range every month.  Especially frustrating was that
>> one of my main competitors was the "unregulated" subsidiary of a nearby
>> rural ILEC that was receiving a ton of USF money, had access to low
>> interest capital from USDA and was receiving reciprocal compensation for
>> terminating phone calls to their ISP system.   In my mind, that
>> $4000/month was going right to them to compete with me.    Their
>> subsidiary did not receive the money directly, but it paid the salaries
>> of their staff and generated traffic into their system to generate more
>> money.   It also allowed them to either buy or bid up the price on
>> 700mhz spectrum for a big chunk of the state of Nebraska - and they are
>> only deploying service in part of it.   Also paid the salaries of the
>> people on their staff that do nothing but fill out government forms and
>> apply for grants from federal and state sources, and that money was used
>> to compete with multiple private operators.   I had to file about 40 or
>> so broadband stimulus protests against one of the wireless carriers in
>> our area that receives USF money because they wanted to get MORE
>> government money to upgrade their network.
>>
>> That is what USF money goes to.   Kill.  It.  Now.
>>
>> Matt Larsen
>> vistabeam.com
>>
>>
>>
>> On 5/28/2010 10:36 AM, Tom DeReggi wrote:
>>
>>> Matt,
>>>
>>> Although I agree with most of what you say, specifically there are huge
>>> risks that USF will just go straight to the Cellular carriers to build 
>>> out
>>> more mobile phone towers to deliver broadband. In order to win a battle 
>>> to
>>> dispand USF, we have to effectively combat other's objections to that.
>>>
>>> What would you propose we respond to the following common objections....
>>>
>>> 1) Alaska - Full of Icy sub-zero weather, surrounded by frozen water, 
>>> very
>>> rural. Without USF subsidee not only would communications providers 
>>> fail,
>>> but the people that are served would be at severe risk. These 
>>> communicatiosn
>>> are absolutely necessary for healtch care and public safety. The 
>>> alternative
>>> optiosn to communbicate jsut dont exist.  This territory can be the most
>>> expensive and challenging to serve. Without USF, these Americans will be
>>> left out in the cold.  Alaska has some very influencial 
>>> senators/legislators
>>> protecting USF.
>>>
>>> 2) If a Rural Telco fails, consumers will be left without 
>>> communications.
>>> Shouldn't competitive provider options be available to all homes, before 
>>> the
>>> solution in place that works is dispanded.  How can we be certain that 
>>> Rural
>>> Telcos will be able to survive without their subsidees? To get their
>>> subsidees in the first place they likely had to prove their need, in 
>>> order
>>> to qualify. Other than just self-perception, what evidence do we have to
>>> support our claim, that Rural USF recipients can survive without the
>>> continued subsidees?
>>>
>>> 3) Rural America needs better mobile phone coverage. Subsidees are 
>>> needed,
>>> thats why coveratge is not there now.  If USF got disbanded would it 
>>> reduce
>>> the subsidees to Mobile carriers, or would it indirectly steal future
>>> funding sources WISPs? If mobile expansion funding is not gotten from 
>>> USF, a
>>> fund that already exists and does not come from WISP's pcoket, where 
>>> will it
>>> come from. If mobile is needed, something needs to pay for it. Will 
>>> future
>>> funding opportunities and programs get redirected to mobile instead? 
>>> Lets
>>> specifically look at West Virgina and BTOP/BIP. West Virginia got 
>>> probably
>>> the largest grant of any ARRA recipient of about $130 million. I 
>>> Personally
>>> thought it was an outrage. Most of the funds will go to pay Frontier to
>>> build fiber backbones, and Verizon to build out Mobile cellular towers 
>>> and
>>> LTE.  Making Verizon,the wealthiest RBOC one of the largest recipients 
>>> of
>>> ARRA funds. Ironically, Verizon plled out of West Virginia as the ILEC, 
>>> not
>>> to long ago. And now instead West Virginia pays them to come back to 
>>> deploy
>>> mobile. This was the recommendation of the State officials, and strongly
>>> pushed from West Virginia Congressman, involved in congressional 
>>> Broadband
>>> committee.  The arguement was that mobile coverage in West Virgina was
>>> horrid and desperately needed. Many will argue mobile phones are more
>>> important than Broadband. Cell phones are a success stories, with 3-5 
>>> phones
>>> per household now adays. If the cellular phone tower needs to be build
>>> anyway, isn't it a better use of funds to take advantage of that
>>> infrastructure to also colocate a form of broadbnd wireless? Saying we 
>>> dont
>>> want subsidees to go to mobile carriers may not get support by  rural
>>> consumers nor policy makers, considering that mobile carriers also own
>>> license spectrum to deliver more sustainable operations, so they will 
>>> argue.
>>>
>>> Now there is nothing more than I'd like to see is to stop subsidees to
>>> mobile phone carriers. They have more than enough revenue in urban and
>>> suburban America to self fund rural America mobility. That is something 
>>> that
>>> is proveable, jsut by looking at public stock info, and the huge rate of
>>> growth the industry has had. It doesn;t need help.
>>>
>>> If the goal is to disband USF, it may be worth reaching out to 
>>> NewJersey's
>>> congressmen. They are one of the largest payers into the fund, and their
>>> congressman have been very vocal about disbanding USF, and stopping the
>>> financial burden put on NewJersey residents. Any New Jersey WISP
>>> constituents on-list?
>>>
>>>
>>> What I'd like to see is tax credits go to third party investors that
>>> contribute to equalizing the industry. For example, tax credits to 
>>> investors
>>> that invest in companies doing less than $10million a year in revenue. 
>>> Tax
>>> credits to tower companies that colocate/lease to atleast one local WISP
>>> (such as one doing less than $10million a year with a local office). 
>>> In
>>> otherwords give help to those that help companies that are looked at as
>>> higher risk.  I'd like to see fed help grow an industry of competitors, 
>>> not
>>> just cater to consumer demands through monopolies.  What we really need 
>>> to
>>> do is get Congress involved and convinced that they need to mandate 
>>> "support
>>> for small business", and "prevent funding of any monopoly behavior", 
>>> before
>>> any future funding or subsidee programs get reformed or formed.
>>>
>>>
>>> Tom DeReggi
>>> RapidDSL&   Wireless, Inc
>>> IntAirNet- Fixed Wireless Broadband
>>>
>>>
>>> ----- Original Message -----
>>> From: "Matt Larsen - Lists"<li...@manageisp.com>
>>> To: "WISPA General List"<wireless@wispa.org>
>>> Sent: Friday, May 28, 2010 3:53 AM
>>> Subject: Re: [WISPA] How the FCC Proposes the Regulate Broadband
>>>
>>>
>>>
>>>
>>>> Mark, I would like to thank you for your interesting and obivously well
>>>> thought out post.
>>>>
>>>> I am firmly of the camp that USF should be completely discontinued, and
>>>> my efforts going forward will be to encourage its disbandment.   The
>>>> major goals of the original USF program have been completed for some
>>>> time now, and the program is no longer needed.   USF is providing
>>>> unneeded subsidization of wireless cellular carriers, some very large
>>>> corporations (CenturyLink) and many rural ILECs that take USF money and
>>>> use it to warehouse spectrum and compete with WISPs.
>>>>
>>>> The politically correct thing to do would be to find allies for our
>>>> other positions and offer to support USF reform that will be inclusive
>>>> of  WISPs.   I have had enough experience with the paperwork, legal
>>>> wrangling and political skullduggery at the state and federal levels
>>>> involved in getting USF to recognize that it is almost totally
>>>> incompatible with WISPs.   USF is HURTING the deployment of broadband 
>>>> in
>>>> the US by supporting the entities that have either failed to deliver
>>>> broadband to many of their rural service areas (CenturyLink), have
>>>> delivered broadband but are now using the funds to subsidize other
>>>> activities such as spectrum warehousing (many small ILECs) or are using
>>>> it to fund the buildout of cellular networks (cellphone companies) that
>>>> provide awful coverage in rural areas.
>>>>
>>>>   From a philosophical and practical standpoint, USF should be
>>>> abolished.   The funds left in their coffers can be used to establish a
>>>> smaller, tightly focused program for schools and libraries - entities
>>>> that are legitimately benefitting from USF.
>>>>
>>>> USF has strong support from telcos and they are great at focusing on 
>>>> the
>>>> tiny parts of the program that are beneficial and the threat that some
>>>> telcos will "go under" without USF support - while the vast majority of
>>>> the money that comes out of USF goes to the bottom line of profitable
>>>> companies with ties to the original monopoly players.
>>>>
>>>> It is time for a quick lesson about the economic concept of "Fast
>>>> Failure".   One of the very best features of capitalism and the
>>>> entrepeneurial environment of the United States is that a business can
>>>> and should fail if it turns out to not be economically feasible.   When
>>>> that business fails, its resources are redistributed and another
>>>> business can step in.   Subsidizing a business that doesn't need
>>>> subsidization, or creating a monopolistic situation through
>>>> subsidization or regulation leads to inefficiencies in the system. 
>>>> USF
>>>> is being used to support businesses that don't need the support and it
>>>> creates an anti-competitive environment.
>>>>
>>>> I would really like to see USF disappear.   It just doesn't make sense
>>>> to me to try and work with a system that is hopelessly flawed and
>>>> unrepairable.
>>>>
>>>> Matt Larsen
>>>> vistabeam.com
>>>>
>>>>
>>>> On 5/27/2010 3:55 AM, MDK wrote:
>>>>
>>>>
>>>>> As I write, is it 1:40 AM, I'm tired as heck, but have been mulling 
>>>>> this
>>>>> question for days, and have finally taken the time to do this. 
>>>>> First,
>>>>> to
>>>>> my self-motivated "enemies" who can't stand anything I say "Nuts!", 
>>>>> I'm
>>>>> right and I know it.   Now, for the rest, who are interested in more 
>>>>> than
>>>>> just shallow mockery,  here's serious conversation on serious topics, 
>>>>> and
>>>>> the excuse to dismiss me for those who can't bring themselves to be
>>>>> serious.
>>>>>
>>>>> Some comments on the strategy for opposing FCC intervention.
>>>>>
>>>>> As is highlighted below - and has been discussed at considerable 
>>>>> length
>>>>> in
>>>>> other venues...   The NBP, the regulation of internet services, and 
>>>>> "net
>>>>> neutrality" all hinge upon a couple of rather firm anchors.   As we 
>>>>> know,
>>>>> the FCC lost in the courts when it attempted to simply re-write the
>>>>> intent
>>>>> of current law.    The first "anchor" for implementation of anything 
>>>>> is
>>>>> to
>>>>> surmount the law as it sits right now.    Either by Congressional 
>>>>> action,
>>>>> or
>>>>> by administratively bypassing it.
>>>>>
>>>>> The current administration has demonstrated in several other areas 
>>>>> they
>>>>> are
>>>>> willing to coordinate completely bypassing the legislative process, 
>>>>> and
>>>>> regulate via "administrative rule".   IE, agencies simply write new 
>>>>> rules
>>>>> that force the intent of the administration, even if it conflicts with
>>>>> current law, or has no basis in law.     There's considerable example 
>>>>> and
>>>>> evidence of this, by the EPA and other agencies.
>>>>>
>>>>> It would be my estimate that this is the approach the FCC will try - 
>>>>> and
>>>>> it
>>>>> is coordinated directly, but unofficially, from the White House. 
>>>>> This
>>>>> approach has mixed support and resistance in Congress.   Some of the
>>>>> Democrats would prefer this, rather than Congress taking up a
>>>>> controversial
>>>>> topic.   However, it is legally "iffy".   And, there's a majority in
>>>>> Congress which is mostly Republicans and some Democrats who actually
>>>>> oppose
>>>>> the FCC attempting to simply rule by fiat.   It's a "turf" thing,
>>>>> actually.
>>>>> Few in Congress are strongly supportive of enterprise, and the 
>>>>> resistance
>>>>> is
>>>>> mostly about Congress objecting to the FCC usurping their role.
>>>>>
>>>>> Thus, it would seem to be a poor strategy to rely on Congressional
>>>>> efforts
>>>>> or even lobbying Congress to proactively act - though it should be 
>>>>> done -
>>>>> to
>>>>> oppose the FCC, perhaps by proactive legislation, to block the FCC 
>>>>> from
>>>>> doing any of this.     It's a poor strategy to depend on it happening,
>>>>> but
>>>>> that happening would be probably the best possible outcome - assuming 
>>>>> the
>>>>> law passed would protect our freedom to be in business and STAY
>>>>> unregulated.
>>>>>
>>>>> As I said above, there are some key pins on which this whole thing
>>>>> revolves,
>>>>> and it has been pointed out, that USF funding - and a re-write of that
>>>>> tax
>>>>> and spending is key.    It's the "carrot and stick" approach.   Not 
>>>>> quite
>>>>> the traditional meaning, but the carrot used to get you closer or to
>>>>> agree,
>>>>> so you'll get close enough to beat with the stick.
>>>>>
>>>>> So, MONEY is the key.    If there is no MONEY to buy your acceptance
>>>>> with,
>>>>> there is near universal industry opposition to regulation.    In that
>>>>> situation, we could be political allies with, and benefit from the
>>>>> lobbying
>>>>> warchests of a wide array of players in the telecom and internet
>>>>> industries,
>>>>> as well as a wide array of both ideological and even some 
>>>>> "progressive"
>>>>> institutions.
>>>>>
>>>>> As long as there is money on the table - as long as any administration 
>>>>> or
>>>>> agency or even Congress has the means to buy off resistance - there is 
>>>>> no
>>>>> reliable massive block of resistance.   As was pointed out in other
>>>>> emails,
>>>>> an alliance with small and rural CLEC's and others is going to be 
>>>>> shaky,
>>>>> because if the regulators put money on the table for them, they 
>>>>> abandon
>>>>> the
>>>>> "common defense" and we're on our own.
>>>>>
>>>>> For that matter, WISPA's membership and even just the readership of 
>>>>> this
>>>>> list is extremely and deeply divided.   There are those who see the
>>>>> purpose
>>>>> of WISPA as one to lobby to repurpose or redirect the flow of that 
>>>>> money
>>>>> to
>>>>> them.    Yet, as pointed out later in the discussions on this list, 
>>>>> that
>>>>> very funding means is going to be extremely anti-competitive, and 
>>>>> result
>>>>> in
>>>>> near monopolies by area, region, etc.    Support for USF funding to 
>>>>> ISP's
>>>>> is
>>>>> 100% at cross purposes to the best interests of our industry's many
>>>>> individual members.
>>>>>
>>>>> WISPA has finally reached that point where it is no longer able to 
>>>>> bridge
>>>>> this gap.   The gap is wide enough, the fence tall enough, or whatever
>>>>> metaphor you wish to choose, so that the choice literally has to be 
>>>>> made.
>>>>> WISPA leadership has attempted diplomatically to attempt to tread both
>>>>> paths, but now they diverge.     Either WISPA advocates for a patently
>>>>> anti-competitive industry subsidy, or else it become against such 
>>>>> subsidy
>>>>> altogether.    There is no future point where this straddling again
>>>>> narrows
>>>>> and the leadership can advocate both for USF money subsidy and still
>>>>> claim
>>>>> to be for ALL WISP's, and for the interests of all us in a free and
>>>>> competitive market.
>>>>>
>>>>> At this point, since WISPA is "representative" of its members, it's 
>>>>> time
>>>>> to
>>>>> ask the members which way they wish to go, and ADOPT IT OFFICIALLY.
>>>>> Stop
>>>>> dissembling between completely opposing ideas - advocacy for the
>>>>> permanent
>>>>> subsidy USF funding has become as opposed to the free market, free
>>>>> enterprise competitive marketplace we MUST HAVE TO THRIVE.
>>>>>
>>>>> I would be remiss in not at least attempting to advocate for an
>>>>> alternative - as we know, Congress likes "reform",  but HATES "ending"
>>>>> anything.   So, we advocate for - and this advocacy can and would gain
>>>>> near
>>>>> universal support from almost all players, as most are rational enough 
>>>>> to
>>>>> see the wisdom in it.    It is also self extinguishing - meaning it is
>>>>> both
>>>>> responsible and attractive politically.
>>>>>
>>>>> I'm not going to broach the "POTS" element of USF, only the conceptual
>>>>> notion of subsidizing broadband deployment - presuming this a mix of
>>>>> congressional funding, USF funding, or other, or any or even none of
>>>>> those.
>>>>>
>>>>> First, we need to recognize that both middle and final mile are at 
>>>>> issue,
>>>>> in
>>>>> terms of broadband for areas which currently lack it, or have
>>>>> uncompetitive
>>>>> or excessively priced services.    Second, that "satellite" is fully
>>>>> outside
>>>>> the realm of any of this, that satellite is not eligible for, nor
>>>>> qualifiable for,  solid infrastructurally sound broadband delivery.
>>>>>
>>>>> Next, we need to address fundamental questions - Ideas must be 
>>>>> sellable
>>>>> to
>>>>> Congress, they must obtain at least a modicum of support,  and they
>>>>> should
>>>>> be equitable to all - putting free market principles to work.    It 
>>>>> must
>>>>> not
>>>>> institute permanent subsidy, which discourages the establishment of
>>>>> business
>>>>> models which are fundamentally sound WITHOUT public money.
>>>>>
>>>>> I would suggest the following approach, that is two-pronged.   One, is 
>>>>> to
>>>>> implore Congress to block the FCC from implementing regulation of 
>>>>> ISP's.
>>>>> Although it's ideologically tepid support,  the idea has, at the 
>>>>> moment,
>>>>> considerable appeal to probably a large enough majority to make it
>>>>> veto-proof.    Especially, if it is combined with a proposal to 
>>>>> "reform"
>>>>> something and prevent yet another permanent subsidy of poor business
>>>>> practices.     It would have widespread public support - including the
>>>>> TEA
>>>>> Party movement, and a huge array of think tanks, conservative 
>>>>> activists
>>>>> groups, and industry lobbying groups outside of even our industry.
>>>>>
>>>>> So, should WISPA officially adopt the idea that direct and permanent
>>>>> subsidy
>>>>> be opposed, period, this can go forward, with support from probably 
>>>>> every
>>>>> member and definitely gain widespread WISP support, since it is 
>>>>> sensible
>>>>> and
>>>>> at the same time, defends our long term interests.
>>>>>
>>>>> 1.   That USF funding in the form and concept in which it exists now
>>>>> never
>>>>> apply to ANY internet service.
>>>>> 2.   That any "national broadband plan" never include any similar
>>>>> approach,
>>>>> which has proven to create long-term intractable monopolies built on
>>>>> inefficient business models and deep and permanent taxpayer subsidy.
>>>>> 3.   That internet services be permanently left as private and
>>>>> unregulated
>>>>> businesses - except for those which exist by state, federal, or other
>>>>> franchise or legal establishment.   For instance, no company with a
>>>>> "cable
>>>>> tv" franchise in a town could ever be eligible for any subsidy of any
>>>>> kind,
>>>>> in any place, ever.   It's already a monopoly.   It, too, would not be
>>>>> protected from regulation, as it concerns rates, net neutrality, etc.
>>>>> 4.  No ILEC is ever eligible for any subsidy within the boundaries of
>>>>> it's
>>>>> incumbency, whether it is expanding broadband to unserved portions of 
>>>>> its
>>>>> incumbency or not.    Whether or not CLEC status should be included
>>>>> should
>>>>> be a subject of debate.
>>>>> 5.  That any financial incentive consist solely as a refundable tax
>>>>> rebate
>>>>> per consumer serviced per month,  with the consumers being defined as
>>>>> those
>>>>> who reside in an area currently without broadband, or in an area where
>>>>> infrastructure does not currently exist to serve at least 95% of all
>>>>> residences within that area.    Area definition should be tied to 
>>>>> local
>>>>> trade areas.    Consumers would be defined as customers of the ISP, be 
>>>>> it
>>>>> residential, business, or organization - like schools, businesses, or
>>>>> even
>>>>> other ISP's.
>>>>> 6.  Rebate eligibility expires upon:   2 years after a 3rd provider or
>>>>> 2nd
>>>>> "different" technology covers at least 95% of all consumers within the
>>>>> defined areas.    ( example,  DSL access is limited to a smallish 
>>>>> rural
>>>>> area, so the 1st and 2nd WISP can both claim rebates per consumer, but
>>>>> the
>>>>> DSL provider cannot unless it expands to reach 95% of the people.
>>>>> WISP's
>>>>> cannot qualify EITHER, unless or until they can cover 95%.   Even if 2
>>>>> WISP's fully cover,  rebates continue until a third joins  - then the
>>>>> trigger allows that WISP subsidy for 2 years,, or the telco rolls out
>>>>> universal DSL, at which the telco and WISP's continue for 2 years and
>>>>> then
>>>>> expires.   Even if one/any/all go out of business after this threshold 
>>>>> is
>>>>> crossed, the expiration is permanent,)
>>>>> 7.  No ISP which opts out of eligibility or competes in any market
>>>>> without
>>>>> eligibility can have its services regulated.    "net neutrality" and
>>>>> other
>>>>> such schemes can only apply to subsidized, uncompetitive markets. 
>>>>> When
>>>>> the
>>>>> market is competitive by being served by at least 2 technologies and 3
>>>>> providers, at near "universal" coverage, then no provider regulation 
>>>>> is
>>>>> needed.
>>>>> 8.  Middle mile providers who serve ISP's who qualify for incentive
>>>>> rebates
>>>>> are also eligible for rebate per consumer serviced by qualified ISP's 
>>>>> who
>>>>> participate.    Up to two middle mile providers per ISP can claim
>>>>> subsidy.
>>>>> Middle mile providers would be defined as non-ILEC providers of 
>>>>> bandwidth
>>>>> who do not sell connections to residential or otherwise retail 
>>>>> individual
>>>>> customers.   "Net neutrality" and other regulation can apply to middle
>>>>> mile
>>>>> providers, too- if they claim any eligible rebates.
>>>>> 9.  ISP's who build their own "middle mile" by moving data more than 
>>>>> 30
>>>>> statute miles (not path, but just distance) to get to a non-ILEC
>>>>> connection
>>>>> could also qualify for tax rebates, but would be required to provide
>>>>> minimal
>>>>> markup interconnection or bandwidth to other ISP's in the same trade
>>>>> area,
>>>>> subject to how much capacity exists vs use.   (distance should be
>>>>> debated)
>>>>> 10.  That ALL infrastructure investment be fully expensable -as in 
>>>>> 100%
>>>>> write-off in year one, as it concerns taxes.    Basically, that puts
>>>>> every
>>>>> ISP in the position of being able to write off and not be taxed on
>>>>> growing
>>>>> or expansion.    This should be permanent tax policy for EVERYONE,
>>>>> everywhere.
>>>>>
>>>>> This conceptual idea is technology agnostic.    It recognizes that
>>>>> UNIVERSAL
>>>>> coverage is really a phantom, because we do live in a country with
>>>>> totally
>>>>> isolated pockets of humanity.    It recognizes that permanent subsidy 
>>>>> is
>>>>> both unwise and unworkable.   It encourages competitive behavior,
>>>>> rational
>>>>> business plans based on other than subsidized revenues.    It 
>>>>> preserves a
>>>>> very small level of subsidy for the truly isolated, even promotes
>>>>> competition within it.
>>>>>
>>>>> This idea recognizes and codifies that subsidy = threat of regulation 
>>>>> and
>>>>> that free markets with a competitive environment do NOT need any
>>>>> regulation
>>>>> to provide workable services to consumers.
>>>>>
>>>>> This expires the vast amount of subsidy all by itself, with built in
>>>>> incentives to reach the point where it expires.
>>>>>
>>>>> It allows operators to opt out and be unregulated,  even if they're in 
>>>>> a
>>>>> qualified area, and their coverage has no impact on the subsidy
>>>>> qualifications.    No pay, no pain.
>>>>>
>>>>> It gives Congress an additional incentive to permanently block the 
>>>>> FCC's
>>>>> ideas, and yet at the same time, address specific concerns as it 
>>>>> relates
>>>>> to
>>>>> net neutrality.
>>>>>
>>>>> I believe this idea to be sellable to a wide array of interests - both
>>>>> political and industry.   It is sellable to the public - who is 
>>>>> currently
>>>>> very mindful of where the government's money is being "blown". 
>>>>> There
>>>>> is
>>>>> no incentive to game the system.   Providers are not encouraged to get
>>>>> the
>>>>> money up front and provide mediocre services.    There is no risk, it
>>>>> does
>>>>> not put public money at risk, it does not indebt providers.
>>>>>
>>>>> It provides incentive to build more middle mile, even competitive 
>>>>> middle
>>>>> mile, with at least a couple of years of enhanced revenue to pay down 
>>>>> the
>>>>> capital costs, maybe more.
>>>>>
>>>>>
>>>>>
>>>>> ++++++++++++++++++++++++++++++
>>>>> Neofast, Inc, Making internet easy
>>>>> 541-969-8200  509-386-4589
>>>>> ++++++++++++++++++++++++++++++
>>>>>
>>>>> --------------------------------------------------
>>>>> From: "Rick Harnish"<rharn...@wispa.org>
>>>>> Sent: Thursday, May 20, 2010 10:41 AM
>>>>> To:<memb...@wispa.org>;<motor...@afmug.com>; "'WISPA General List'"
>>>>> <wireless@wispa.org>
>>>>> Subject: [WISPA] How the FCC Proposes the Regulate Broadband
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>> * FCC Proposes a THIRD WAY to Regulate Broadband
>>>>>>
>>>>>> * Appeal Comcast decision
>>>>>>
>>>>>> * Not likely to succeed as the vote was 3-0 in favor of Comcast
>>>>>>
>>>>>> * Go to Congress and get specific authority
>>>>>>
>>>>>> * Too long of a process
>>>>>>
>>>>>> * 1. Reinforce its ancillary authority argument
>>>>>>
>>>>>> * Suggested by the Court but not considered by the FCC because of
>>>>>> scope issues.
>>>>>>
>>>>>> * 2. Reclassify Internet communications as telecommunications service
>>>>>> to restore direct authority over Broadband communication networks
>>>>>> * 3.  THIRD WAY - Move all Broadband Internet access service to Title
>>>>>> II and lightly regulate this service
>>>>>>
>>>>>> * Who is the Target?
>>>>>>
>>>>>> * Rural Carriers offer Broadband Internet access service as a Title 
>>>>>> II
>>>>>> telecommunications service (no effect)
>>>>>> * RBOC's, wireless, cable and Broadband over powerline providers 
>>>>>> offer
>>>>>> Broadband Internet access Service as Title 1.
>>>>>>
>>>>>> * These are the providers that will be subject to Title II 
>>>>>> regulations
>>>>>> * These entities can and will push back very hard
>>>>>>
>>>>>> * Purpose of the THIRD WAY
>>>>>>
>>>>>> * The Third Way isn't about Network Neutrality.
>>>>>>
>>>>>> * The proposed Title II regulation of Broadband Internet access
>>>>>> service does not regulate or control the entire transport to the
>>>>>> Internet
>>>>>> cloud
>>>>>>
>>>>>> * The Third Way IS about regulation of last mile Broadband for other
>>>>>> purposes.
>>>>>>
>>>>>> * "At the outset, it must be made absolutely clear that the issue of
>>>>>> reclassification goes far beyond our open Internet proceeding.  It
>>>>>> involves
>>>>>> some of the most important parts of our National Broadband Plan -
>>>>>> universal
>>>>>> service, privacy, transparency, and cyber security.  Without
>>>>>> reclassification, the road to achieving each of those issues is laden
>>>>>> with
>>>>>> land mines and likely to fail."  Commissioner Mignon Clyburn - May 
>>>>>> 11,
>>>>>> 2010
>>>>>>
>>>>>> * Propsed Regulations
>>>>>>
>>>>>> * Section 201
>>>>>>
>>>>>> * Requires Internet providers to interconnect and charge reasonable
>>>>>> rates
>>>>>>
>>>>>> * Section 202
>>>>>>
>>>>>> * Prevents price and service discrimination
>>>>>>
>>>>>> * Section 208
>>>>>>
>>>>>> * Sets up FCC Complaint processes
>>>>>>
>>>>>> * Section 222
>>>>>>
>>>>>> * Protects customer privacy and proprietary commercial information
>>>>>>
>>>>>> * Section 254
>>>>>>
>>>>>> * Allows use of Universal Service Fund for Broadband
>>>>>>
>>>>>> * Section 255
>>>>>>
>>>>>> * Ensures disability access
>>>>>>
>>>>>> * Problems with the Third Way
>>>>>>
>>>>>> * Major push back on this approach by the target providers (not Title
>>>>>> II presently)
>>>>>> * Problem achieving the goal of the reform - The Third Way doesn't
>>>>>> deliver Network Neutrality for example.
>>>>>>
>>>>>> * Effective regulation of Broadband has to include 
>>>>>> "customer-to-cloud"
>>>>>> transmission.  This approach only addresses the last mile and ignores
>>>>>> the
>>>>>> middle mile transmission.
>>>>>> * Avoids regulation of any services provided over the transmission.
>>>>>> * Effort is initiated to ensure Net Neutral principles.  However, the
>>>>>> management of the pipe does not need to be with the pipe provider,
>>>>>> instead
>>>>>> it can be with the ISP managing and controlling the middle mile to 
>>>>>> the
>>>>>> Internet
>>>>>> * The effort includes USF reform
>>>>>>
>>>>>> * Section 254 requires that USF be used for telecom service.  If
>>>>>> Broadband isn't a telecom service, the whole notion of USF reform 
>>>>>> can't
>>>>>> happen easily under the NBP.
>>>>>>
>>>>>> * Next Steps for Title "I.V"
>>>>>>
>>>>>> * FCC will issue a Notice of Inquiry (NOI) on the matter.
>>>>>> * FCC has announced that it will move straight to a Declaratory 
>>>>>> Ruling
>>>>>> after the NOI.
>>>>>> * FCC has to create a record that allows the reversal of numerous
>>>>>> prior decisions.
>>>>>> * This will be a very complicated process
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>> Respectfully,
>>>>>>
>>>>>>
>>>>>>
>>>>>> Rick Harnish
>>>>>>
>>>>>> President
>>>>>>
>>>>>> WISPA
>>>>>>
>>>>>> 260-307-4000 cell
>>>>>>
>>>>>> 866-317-2851 WISPA Office
>>>>>>
>>>>>> Skype: rick.harnish.
>>>>>>
>>>>>> rharn...@wispa.org
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
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