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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Posted August 2001