Continual regulations & changes on the minds of PC Telcom staff
Despite a year where PC Telcom experienced an operating loss, board members and staff are excited for what the future has to offer. Members of PC Telcom met Thursday, April 12 for the annual meeting at HHS.
PC Telcom CEO/General Manager Vince Kropp painted the picture of what may shake out depending on Federal Communications Commission (FCC) rules in the coming future.
PC Telcom continued the ongoing replacement of outdated copper cable with fiber optic cable. Approximately 100 miles of fiber optic cable and electronics at an approximate cost of $1.3 million were installed.
“Depending on where the proposed Federal Communications Commission (FCC) rules shake out, we may be forced to alter our current plan of delivering a fiber optic connection to all members within our Holyoke exchange,” Kropp said.
The upgrades that are being made provide PC Telcom additional capacity where the copper plant has outlived its useful life. Fiber optic cable provides much more capacity, which allows PC Telcom to offer much higher internet speeds.
The FCC has mandated broadband speeds of at least four Mbps of download speed upon reasonable request. Four Mbps download speeds are very difficult to attain beyond about one mile over most copper cable.
In addition to providing much more capacity, fiber optics cost less to install, less to maintain and are less susceptible to environmental problems such as radio frequency interference and the damage caused by moisture intrusion in copper cables.
PC Telcom circulated a resolution during last Thursday’s meeting hoping members would provide their signatures.
The resolution, which PC Telcom will send to federal legislators, recognizes the vital importance that broadband will play in the lives of the customers. The resolution also recognizes that while four Mbps download is considered sufficient today, regulators and legislators must recognize that broadband is expected to follow a trajectory similar to computing power.
“We sometimes also hear that wireless technology will replace land line facilities, and while wireless has improved over the last several years, I believe that we are many years away from wireless technologies having sufficient capacity to handle current and future broadband needs,” Kropp said.
The FCC’s broadband plan identifies the entry level for sufficient broadband at four Mbps down and one Mbps up. Current wireless deployments in the area are something less than one Mbps down, Kropp said.
“Last year we increased our base internet speeds from 1.0 Mbps to 2.0 Mbps. We currently provide speeds to 15 Mbps,” Kropp noted.
PC Telcom plans to install approximately 45 miles of fiber optic cable in 2012. They also plan to improve and expand their fixed wireless broadband facilities.
Another new service they hope to be deploy is PCTV+, which will be a video product that is delivered over a hi-speed or internet connection.
Kropp also noted they anticipate rate adjustments to coincide with the FCC’s recent order.
The FCC and Colorado Public Utilities Commission are not only advocating residential benchmark rates of approximately $17 per month, but essentially requiring benchmark rates within a certain time frame or PC Telcom foregoes equal dollars from other mechanisms.
“The estimated $17 benchmark is about $4 higher than our current average residential rate,” Kropp said.
Since PC Telcom is regulated by the FCC and the Colorado Public Utilities Commission, they do not have the luxury of reviewing their rates internally and adjusting them on a periodic basis as necessary outside of the ratemaking process.
Kropp outlined the federal resolution that was distributed and noted they also have a state resolution that will be used in the advocacy of Colorado Senate Bill 157, which seeks to modernize telecom laws in Colorado and to level the playing field for access to the Colorado High Cost Support Mechanism that was designed to deliver advanced telecommunications services to rural Colorado at affordable prices.
PC Telcom has undertaken a formal strategic planning process annually for approximately the last 10 years, board president Rick Krueger said. Board members meet with an outside firm that works in the telecom industry to discuss past goals, come up with new ones, view regulatory changes and project their financial future.