Conspicuous AT&T
Trucks Offer More Than Utilities, But Niwot Will Still Have To Wait
By Mary Kirker
For some area residents,
picking up the phone to make a call has resulted in prolonged busy signals
or phone lines that do not disconnect. Others have noticed the frequent
appearance of AT&T service trucks and damaged lawns. And the connection
is…more residents are ordering broadband services that offer faster access
to the Internet.
Internet choices vary in
speed because of two primary factors: the type of signal and the conduction
material. Analog signals that are emitted near the speed of sound across
telephone wires to a standard modem offer the slowest service available.
Digital signals from electronic devices must first be converted to the
slower analog signals to travel on telephone wires and are then converted
back to digital at the receiving electronic device.
Many Internet service providers
offer faster access using ISDN or DSL connections, which are also sent
across standard telephone wires. ISDN (integrated services digital network)
uses the faster digital signals, while DSL offers even faster service by
using a combination of analog and digital signals.
Broadband service providers,
such as AT&T, use the faster digital signals but send them across a
fiber optic network that transmits signals near the speed of light. The
digital signals are sent across wire cables from the home to a central
receiving point, which are then sent across fiber optic cables to the next
community. Finally, wire cables carry the signals from this central point
to the home or business.
The term "broadband" refers
to varying band widths used for carrying information on the same wire.
Cable and fiber optic networks use only a small portion of the frequencies
available. Broadband services use the remaining frequencies on the same
cable or fiber optic network for high-speed Internet access. Fees for AT&T
Broadband cable access start around $49.95 per month.
Drawbacks to broadband include
slow speeds during times of high demand, similar to other service providers.
E-mail addresses often must be changed with the service provider, although
some allow subscribers to retain their addresses for an additional fee.
In addition, fiber optic
networks are more costly to install. Unlike slower, more durable standard
phone lines, fiber optic cables must be buried underground to protect the
thin glass strands from breaking. Burying these networks often means digging
up yards in easements between homes to upgrade existing hardware.
Qwest does offer a DSL service
that uses existing hardware but customers may have to wait as long as four
months for installation. Wait time for ISDN installation is often far less.
According to Ted Miller, the wait time for AT&T’s ISDN service is "about
a week."
Charlie Kelly of the Niwot
Telecommunications Cooperative and president of American Broadband proposed
bringing fiber optic lines directly to the home at 500 to 1000 times the
speed of AT&T’s service.
Kelly describes AT&T’s
networks as "a hybrid service. It combines the old lines with the new technology
of fiber optics."
On July 12, 2001, the Colorado
Public Utilities Commission granted Niwot Telcom certificates for public
convenience and necessity, to exercise operating authority and to provide
local exchange telephone services.
These certificates gave
the company legal authorization to dig and place the fiber optic cables.
"It’s very exciting!" exclaimed Kelly.
Three basic packages are
planned: an entertainment package, a data package and a combo package.
Additional services such as video on demand will be available as a supplementary
purchase. Pricing will be discounted from comparable offerings by the competition.
Kelly has filed with the
SEC to sell equity investments. Shareholders will be eligible for additional
discounts on service. The discounts are estimated to be 30 percent for
class A shareholders, 15 percent for class B shareholders, and five percent
for non-investors. "We can’t sell stock yet," said Kelly. "We’re still
in a quiet period waiting for approval."
Niwot Telcom was first developed
as a co-op. While Niwot residents indicated sufficient interest to support
a business, residents simply did not have time to volunteer for the project,
according to Kelly. The company was restructured to no longer require volunteers.
Also, everyone is eligible to subscribe, whether or not they choose to
become investors.
Meanwhile, a franchise sold
in the Gunbarrel area agreed to join with the Niwot project. The two projects
were combined into a locally owned, limited liability company called Niwot
Telecommunications, LLC. The company will service an area bounded by Highway
36 on the west, I-25 on the east, Highway 34 on the north and Jay Road
on the south.
Niwot Telcom has applied
for $14.9 million in non-recourse debt financing known as an NR loan. The
loan will cover the costs of design and build out of the fiber optic network.
The equity raised is earmarked to cover operations costs such as salaries,
leases, marketing and sales.
Whether subscribers or investors,
Internet growth has impacted Niwot and Gunbarrel residents with hope for
a faster future soon. Like broadband networks, the fiber optic backbone
must also be placed underground. Although fiber optic loops have been newly
placed around Gunbarrel, Longmont, Loveland and Fort Collins, Niwot users
will have to wait for local main loops to be installed.
To contact AT&T by phone,
call 303-930-8242 or 1-888-824-8152 or visit their website at www.att.com.
To contact Niwot Telcom
call Charlie Kelley at 303-651-9345 or email him at charliek@indra.com.
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