AT&T makes rural broadband promise to secure merger approval

One of several concessions AT&T made to secure FCC approval for its merger with Bellsouth is to install at least 30% of its new broadband lines in rural and low-income areas. This could have implications for farmers and ag businesses in the South and California, where the combined operations will be the dominate phone service provider.

The agency gave final approval to the merger Friday, making it the largest in telecommunications history. The $84 billion deal puts a third of the nation's phone lines under AT&T ownership and also makes it the largest provider of high-speed internet service in the nation. The company also gains control of Cingular, the nation's largest cell phone provider.

How quickly or how far out in the country AT&T pushes high-speed service remains to be seen. There are technical challenges to "building out" this kind of service from town. DSL subscribers must be within a specific distance of switching equipment, and that distance tends to be measured in hundreds of yards. Homes and businesses that are miles from town are typically too far away for high-speed access.

Two related concessions AT&T made were to reduce high-speed connection fees to $10 per month for customers now using their telephone services and $19.95 for customers who want broadband service but use other telephone companies.

COMMENT:

Anonymous said...

I am a first time rural consumer. Meaning I moved to rural America five years ago. I have had DSL and cable on the west coast prior to moving to Florida. Now I am left with an extreme disadvantage. The electric company tells me they won't ever offer BPL (Broadband over Power Lines) in the rural area. Though they are considering the urban areas. Bellsouth had informed me that DSL would never make the 12 miles out to my home from town. Cable, of course, is just a dream. We're stuck with 26.4 modems and satellite. When it rains hard satellite is rendered completely useless. Speaking of which, I just paid 964.15 to get a satellite set-up. Only $99.00 a month! No discounts when it rains. So one needs to hope for good weather. How much do you city folks pay for your broadband? Ironically, rural area communities minimum wage is much less than the city. $6.25 here. I am just one of the lucky ones that can afford a bit more. But, I honestly feel like I am being swindled. So next time you go camping, tubing, canoeing, whatever in rural America be kind to the person behind the counter - They are using a 26.4 modem most likely!