Monthly Newsletter for TSTCI Member Companies
 April 2000

www.tstci.org
Texans Helping Texans
Volume IV, No. 4
Texas Statewide Telephone Cooperative, Inc. is a statewide telecommunications non-profit organization representing the interests of Texas rural independent telephone systems. All member companies are regulated by the Public Utility Commission of Texas.
Senators Make Effort to Close Digital Divide
U.S. Senator Byron Dorgan introduced legislation March 28 to spur delivery of Internet broadband services to rural areas.  His plan - the Rural Broadband Enhancement Act (S. 2307) - was written to ensure rural America is not left behind in the telecommunications industry revolution.

Dorgan's plan, which was modeled on the Rural Electrification Act that delivered electricity to rural America in the 1930's, would make available $3 billion for a revolving loan fund over a five-year period to provide capital for low interest loans to finance construction of the necessary broadband infrastructure.  Any company building such infra-structure for rural areas would be eligible for the loans, which would be repayable over 30 years at  an  interest rate of two percent.  The loans would be made through RUS.

"No region of the country should be left behind in telecommunications technology," Dorgan said.  "We had this debate about electricity and about telephone service when they were new, and I think the universal need and the universal requirement that we build out the infrastructure for both in every part of our country is well understood and well recognized."

Representative Bart Stupak has introduced similar legislation (H.R. 4122) in the House of Representatives, stating that, "As the demand for high-speed Internet grows, numerous companies are responding in areas of dense population.  While urban America is quickly gaining high-speed access, rural America is - once again - being left behind."

Senator Jay Rockefeller has introduced legislation - the Rural Telecommunications Modernization Act of 2000 (S. 2321) - to create a tax credit for expanding broadband telecommunications services in rural areas.   "The world of communications is changing so rapidly and in so many ways," commented the Senator.  "These changes are not just affecting the way the world communicates - they are fundamentally changing the make-up of our economy.  Unfortunately, West Virginia and rural areas throughout the country are at a significant technological disadvantage.  Right now there is a tremendous and potentially very dangerous disparity between broadband access in rural and urban America."

"Using a focused, affordable tax credit, this plan will give companies the incentive to build broadband facilities in rural parts of West Virginia.  While broadband services are becoming available in some of the larger areas in our state, this legislation will help spread those services to more remote communities."

To ensure the credit is focused on the need that actually exists, it will only be available for certain types of investments:

  • First, only investments in rural areas qualify.  The credit is restricted to investments in areas that are more than 10 miles from any town with more than 25,000 people, and that are not within a county with a population density of more than 500 people per square mile.
  • Second, investments must be for "broadband local access facilities."  This includes fiber optics, DSL equipment, wireless enhancements, and cable TV network upgrades.
  • Finally, the credit is restricted to investments needed for "high-speed broadband telecommu-nications services."  Only powerful broadband services are covered.  Companies cannot claim that "narrow-band" services qualify.
Special Thanks from TSTCI to Texas Communications Expo!
 TSTCI would like to take this opportunity to once again thank Texas Communications Expo, one of our Associate Members, for their continued support and sponsorships.  During Expo 2000 in Belton, Texas, Texas Communications Expo presented TSTCI with a donation in the amount of $5000.
 Texas Communications Expo's contribution will benefit educational activities and assist TSTCI in providing quality programs during our annual conferences.
 Please join us in extending our sincere appreciation to Texas Communications Expo!

 
Plantmen's Conference Draws Record Attendance!
The first TSTCI Conference of 2000, the Plantmen's Conference, was held at the Menger Hotel in San Antonio the first week of March and had a record attendance of approximately 135 attendees.  The equipment show on Wednesday was well attended.

Thursday morning marked the beginning of a very successful conference as Billy Riggs, an illusionist, left everyone scratching their heads wondering how he tore up a newspaper, then "magically" reproduced it in one piece.  His magical illustrations about how attitude and performance are closely linked were fascinating.

The rest of the morning focused on xDSL technology, with presentations by member company and vendor representatives and a lot of audience participation.  Thursday afternoon, Mr. Don McCarty of McCarty Associates presented a seminar on "Noise Mitigation and Its Effect on Digital Transport."  Everyone seemed to enjoy Don's easygoing style, and there was quite a bit of discussion and interaction.  This was Don's second year of making this presentation at the conference and several attendees commented that he provides a lot of good information.

Friday morning, it was time for roundtable discussions regarding Central Office, Installation Repair, and Construction.  This roundtable forum has become a regular feature during the Plantmen's Conference to enable members to discuss common challenges and exchange ideas.

Brent Strehlow was the Conference's final speaker on Friday.  He reinforced the importance of a positive attitude in dealing with internal and external customers.  He provided some excellent illustrations, and we received good feedback from his presentation.

The Grand Prize Drawing marked the close of the Plantmen's Conference.  Congratulations to our winner, Mr. Robbie Allen of Peoples Telephone Cooperative, Inc. in Quitman, Texas!  Robbie received a $500 gift certification from Wal Mart.
 TSTCI thanks all the Plantmen's Conference participants for making this one of the best conferences ever!

TSTCI Welcomes Four New Associate Member Companies!

At the TSTCI Board of Directors Meeting held March 29, four new Associate Membership applications were approved.  Please join us in extending a warm welcome to:
Tex-N Utilities Communications, Inc. - providing installation and service of fiber-optic and copper cabling; located in Dripping Springs, Texas;
Pliant Systems - manufacturer of Pliant 3000 Integrated Access Platform; located in Research Triangle Park, North Carolina;
Pulsecom - a telecommunications supplier;  located in Herndon, Virginia; and
WRLD Alliance - a wholesale long distance provider; based in Fairview, Utah.
 

FCC Takes Further Steps to Take Profit Out of Slamming
On April 13, the FCC adopted tougher rules to combat slamming.  Slamming has been the single largest source of complaints to the FCC over the last several years.  The FCC made the decision that state regulatory commissions are better equipped than the industry to resolve slamming disputes and directed that those disputes be brought before state commissions, or before the FCC in cases where a state has not elected to administer slamming rules.  The rules adopted by the FCC also require carriers found responsible for slamming to pay out 150% of all payments received from consumers.

In the FCC's Order, the proposal was accepted that state regulatory commissions, not the industry, resolve slamming disputes.  The FCC had previously delayed the effective date of the liability rules to allow the industry to reach a consensus on a plan to have an independent third-party administrator resolve slamming disputes and administer the liability rules; however, such a consensus was never reached.  Over 35 state commissions expressed willingness to administer anti-slamming rules, and the FCC accepted their proposal.

The FCC also reaffirmed that, where the consumer has not paid the slammer, the consumer is absolved of the obligation to pay for service for up to 30 days after being slammed.  In cases where the consumer has paid the slammer, the FCC modified the liability rules.  Under the new rules,  a slammer is obligated to pay the authorized carrier 150% of charges received from the consumer.  The authorized carrier will, in turn, reimburse the consumer 50% of the charges the consumer paid to the slammer.  Thus, the FCC has increased penalties for slamming, increased incentives for authorized carriers to go after slammers, and ensured that consumers receive compensation.

PUC Selects Sprint to Serve Relay Texas
In March, the PUC selected Sprint Corporation as the service provider for the Relay Texas program until August 31, 2005.
 Sprint was chosen over other bidders as the best value for the state based on the company's high comparative ranking for service enhancements, cost, network sophistication and administrative reporting.  Contract negotiations will be held to reach a five-year agreement effective September 1.

Relay Texas is an around-the-clock telephone interpreting service between customers who can hear and the more than 1.8 million Texans who are deaf, hard-of-hearing, deaf-blind or speech-disabled.  The program was authorized by Texas legislature in 1989 and began operating in September 1990.  Approximately 50,000 calls were processed during the first month of operation.

Today, Relay Texas continues to add service enhancements and handles an average of 385,000 calls per month at no charge to the Relay user.  There are no restrictions for the length or number of calls placed.  Nearly all of the $11.4 million annual budget for Relay Texas is paid through the Texas Universal Service Fund.  Approximately 2.1 percent of the TUSF goes to support Relay Texas.

Upcoming Events
June 2000
26 - TTA Annual Golf Tournament Fundraiser - Euless, Texas
29 - PUC Open Meeting

July 2000
1-5 - OPASTCO Summer Convention - Colorado Springs, Colorado
12 - PUC Open Meeting
12-14 - TSTCI Bookkeepers/Accountants Conference - San Antonio, Texas
25-26 - TSTCI Internet Seminar - Dallas, Texas

August 2000
2-4 - TSTCI Futures Retreat - Lake Tahoe, Nevada 
10 - PUC Open Meeting
24 - PUC Open Meeting