The Packet Train Needs to Stop at Every Door

THE PACKET TRAIN NEEDS TO STOP AT VERY DOOR
[SOURCE: National Exchange Carrier Association press release]
On Wednesday, NECA released an outline of its newest study, . The study provides the latest data on the broadband revolution in rural America, network upgrade and tripleplay multimedia package cost estimates and availability issues, and the implication of the packet revolution on Universal Service and Intercarrier Compensation reform. reports that maintaining and evolving rural network infrastructure remains critical to meeting the future needs of rural consumers and their communities, including the provision of new IP-based services like VOIP. However, this cannot be
achieved based solely on competitive model assumptions applied to urban areas; rural America still requires a carrier of last resort due to the lower density, higher cost characteristics of rural service areas. The study also finds that as excess network capacities diminish and demand for voice, video and data multimedia packages increase, all carriers including companies serving rural consumers will require significant additional investment in their broadband networks. For rural carriers, this requires stable cost recovery mechanisms including adequate intercarrier compensation and sustainable universal service funding.
http://www.neca.org/wawatch/wwpdf/061506_5.pdf