[opendtv] Re: 20040503 Mark's Monday Memo
- From: "John Willkie" <jmwillkie@xxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 5 May 2004 14:54:49 -0700
Even more interesting, BEFORE there was a federal giveaway (lifeline) to
phone companies and others (corporate welfare) the phone penetration rate
was 94.1 or so percent. In more than two decades, at an expense of many,
many billions of dollars, the rate is now .6 percent higher.
Those were very expensive gains, and we all subsidize this service.
The difference, dear Albert, is that OTA TV is free: no recurring monthly
charge.
John Willkie
-----Original Message-----
From: opendtv-bounce@xxxxxxxxxxxxx
[mailto:opendtv-bounce@xxxxxxxxxxxxx]On Behalf Of Manfredi, Albert E
Sent: Wednesday, May 05, 2004 10:50 AM
To: opendtv@xxxxxxxxxxxxx
Subject: [opendtv] Re: 20040503 Mark's Monday Memo
> - I don't have a "December 31" section, but there continues
> to be much
> discussion about shutting down analog transmission when the
> congressionally mandated 85%+ point is reached. I,
> therefore, found a
> non-TV-related item on the FCC web site this week interesting. It's
> about telephone service. It notes that 94.7% of U.S. households have
> it. The report is concerned with delivering it to the remaining 5%:
> <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-87A1.doc>
> So, is 85+% going to be enough?
In the intro and background sections, the report states:
--------------------------
Nationally, the telephone penetration rate is 94.7%, in large
part due to the success of the Lifeline/Link-Up program and
our other universal service programs. Nevertheless, we believe
there is more that we can do to make telephone service
affordable for more low-income households.
[ ... ]
The Lifeline/Link-Up program is one of several universal service
support mechanisms that further these goals. Lifeline provides
low-income consumers with discounts of up to $10.00 off of the
monthly cost of telephone service for a single telephone line
in their principal residence. Link-Up provides low-income
consumers with discounts of up to $30.00 off of the initial costs
of installing telephone service. Recognizing the unique needs and
characteristics of tribal communities, enhanced Lifeline and
Link-Up provides qualifying lowincome individuals living on
tribal lands with up to $25.00 in additional discounts off the
monthly cost of telephone service and up to $70.00 more off the
initial costs of installing telephone service.12 Pursuant to
section 254(e), only eligible telecommunication carriers (ETCs)
designated pursuant to section 214(e)13 are eligible to receive
Lifeline/Link-Up support.14
---------------------------
So interestingly enough, even with all these subsidies, telephone
service is not available to as many households as TV is today.
The questions to ask IMO are:
1. If analog OTA were shut off, how many households would
*actually* remain disenfranchised? Point being, I believe that
way over 94.7 percent of households have access to one form of
TV or other, even if analog OTA were shut off. If nothing else,
STBs could be provided to low income households at a huge
discount *if* these households don't already subscribe to cable
or DBS.
2. Since telephone service is characterized as a lifeline
service, and the telcos are required provide the level of
system availability that such a service implies, does it even
make sense to compare the two? You don't need a TV set for
any emergency information. All you need is a $15 clock radio
(or whatever they're going for these days).
I always thought that the 85 percent rule was based on the
assumption that some people won't bother to make a change unless
they are compelled to. So the 85 percent rule keeps the number
of stragglers down to something manageable. However, it's a bit
of a stretch to turn TV into a *necessity*, I would think.
Bert
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