>> WIRED WEST HAS BEEN CAMPAIGNING TO BRING HIGH-SPEED
BROADBAND INTERNET SERVICE TO EVERY CORNER OF OUR WESTERN
MASSACHUSETTS REGION.
IT'S A DAUNTING AND EXPENSIVE UNDERTAKING FOR MANY SMALL TOWNS
TO FACE, ESPECIALLY AFTER QUESTIONS WERE RAISED ABOUT
EXACTLY WHO WOULD OWN THE INFRASTRUCTURE REQUIRED.
WE SPOKE WITH WIRED WEST EXECUTIVE BOARD MEMBERS TIM
NEWMAN AND BOB LABRIE TO HEAR ABOUT THE LATEST PROMISING
DEVELOPMENTS IN THEIR QUEST.
>> AFTER A LONG AND DIFFICULT PERIOD WE'RE NOW QUITE ENTHUSED
ABOUT OUR NEW PLAN THAT WE THINK ADDRESSES THE PROBLEMS THEY
RAISED IN DECEMBER OF 2015.
AND FOR THE, MOST OF THE YEAR OF 2015 WE WERE, AS YOU SAID WE
WERE GOING ALONG GREAT GUNS.
WORKING TOGETHER, THEY WERE GOING TO FINANCE THE WORK AND
SUPERVISE THE BUILDING AND THEN WIRED WEST WAS GOING TO OPERATE
IT, AND PART OF THE WIRED WEST PLAN, OR KEY PART OF IT WAS THAT
THE TOWNS WHO HAD FINANCED THAT WERE GOING TO TURN OVER THEIR
OWNERSHIP TO WIRED WEST, WHICH BY THE WAY IS A TOWN BASED
COOPERATIVE, SO IN ESSENCE, OUR POSITION WAS, YOU STILL OWN IT,
WE'RE JUST OPERATING IT.
MBI, AFTER COOPERATING WITH US FOR NEARLY A YEAR, SUDDENLY
DECIDED THAT WAS A BAD IDEA AND THAT THE TOWNS HAD TO OWN THE
ASSETS.
THEY COULD NOT TURN THEM OVER TO US.
THEY WROTE THIS -- CHARACTER IETH IN VARIOUS WAYS.
AN ASSASSINATION, A WHAT HAVE YOU, WHAT HAVE YOU BUT THEY
PULLED THE RUG OUT AND THEY SAID TO THE TOWNS ESSENTIALLY, WELL
IF YOU ARE GOING TO DO SOMETHING WITH WIRED WEST YOU CANNOT HAVE
ANY MONEY, THAT THE STATE HAS AUTHORIZED ALLOCATED FOR YOUR
TOWN.
>> BOB LABRIE LET ME ASK YOU, THE BIG THING ABOUT THIS IS IT
IS CRITICAL TO HEALTH, GROWTH, AND DEVELOPMENT OF ALL OF
WESTERN MASSACHUSETTS, AND ESPECIALLY THE SMALLER
POPULATION TOWNS THAT AREN'T ECONOMICALLY INTERESTING TO THE
BIG CABLE PROVIDERS.
YOU HAVE GOT TO RUN CABLES AND GET POLES AND DO A LOT OF STUFF,
AND HAVE PEOPLE READY AN STANDBY TO DO WORK FOR NOT A LOT OF
CUSTOMERS.
THIS IS GOING TO ADDRESS THAT PROBLEM.
>> ONE OF THE DIFFERENCES BETWEEN THE WIRED WEST PLAN AND
WHAT THE STATE IS PUTTING FORTH.
THE STATE IS REQUIRING TOWNS TO BUILD INDEPENDENT TOWN-OWNED
NETWORKS.
WIRED WEST IS TAKING A STEP BACK AND SAYING YOU NEED TO CONNECT
ALL THOSE TOWNS AND PUT THEM TOGETHER IN THE REGIONAL RING
TECHNOLOGY, THAT WAY FROM A REGIONAL PERSPECTIVE YOU ARE
SAVING COSTS BECAUSE ONCE YOU HAVE THIS GROUP OF TOWNS
CONNECTED, YOU HAVE A LARGER POOL TO GROW FROM, A LARGER
CUSTOMER BASE THAT YOU CAN USE TO NEGOTIATE BETTER PRICES, BUT
FROM A TECHNOLOGICAL PERSPECTIVE, THE STATE IS
REQUIRING EACH OF THE INDIVIDUAL UNSERVED COMMUNITIES TO CONNECT
TO THE NETWORK.
IT IS COSTLY.
IN OUR ESTIMATION WE USED AVERAGES THAT THIS THAT A TOWN
WOULD HAVE TO PAY $28,000 A YEAR JUST TO CONNECT TO CREATE THAT
PIPELINE THAT GETS YOU CONNECTED TO THE INFORMATION SUPERHIGHWAY.
IF WE DO THIS AS A NETWORK, THE NETWORK WOULD ONLY PROBABLY COST
CLOSER TO $78,000 IS OUR ESTIMATE, SO IF YOU TAKE A SMALL
NETWORK OF SAY 15 COMMUNITIES OR TOWNS THAT CONNECT INDEPENDENTLY
TO THE ONE, TWO, THREE NETWORK AND YOU ADD IT, IT ADDS UP TO
400,000 ANNUALLY VERSUS IF YOU USE A NETWOR LIKE WHAT WE ARE
PROPOSING, IT'S 78,000.
THOSE SAVINGS BECAUSE WE ARE LOCAL GETS PASSED BACK TO OUR
TOWN COMMERCE.
>> TWO OR THREE YEARS BACK WHEN WE TALKED TO FOLKS FROM WIRED
WEST, THE BIG THING WAS GETTING ENOUGH SUBSCRIBERS TO COMMIT,
AND ENOUGH TOWNS SO YOU COULD GO FORWARD, AND THAT HAPPENED, AND
EVERYBODY AT THAT TIME WAS ASKING WHAT'S IT GOING TO COST
AND YOU HAD TO PUT FORWARD A LITTLE MONEY AND SAY YEAH, I
GUARANTEE I WILL DO THIS, BEST GUESS, AND I KNOW IT'S BEING
WORKED OUT AS WE JUST HEARD WITH BOB, BUT WHAT'S THE BEST GUESS
OF WHAT IT WILL COST?
>> WELL LET ME JUST FOR A MOMENT SAY THAT REFERRING BACK TO WHAT
YOU WERE TALKING ABOUT, WE HAD THE SUBSCRIPTION DRIVE, AND IT
WAS FAIRLY AMAZING, OVER 7,000 PEOPLE SIGNED UP PRESUBSCRIBED
AND SENT IN $49 TO PUT INTO AN ESCROW ACCOUNT APPLIED TO THE
FIRST MONTH'S BILL.
FOR A SERVICE TWO OR THREE YEARS AWAY, SO THAT, I THINK, IS A
DEMONSTRATION OF THE APPETITE OF THE RESIDENTS.
THAT REPRESENTS 3% OF THE TOTAL HOUSEHOLDS.
AND THAT WAS A $49 PRICE POINT AND CONNECTED TO A VERY WELL
DEVELOPED SPREADSHEET, BUT THAT GOT THROWN OUT THE WINDOW WHEN
THE MBI CHANGED THE RULES.
OUR NEW PLAN IS NOT QUITE AS INEXPENSIVE BUT PRETTY GOOD.
THE LOWER LEVEL, WHAT WE'RE CALLING THE ECONOMY LEVEL OF
INTERNET SERVICE, IS 25 MEGA-BITS, AND THAT'S $59 A
MONTH.
IT'S VERY NICE, AND THEN ALONG WITH THAT WE'RE OFFERING GIVING
BIT SERVICE FOR $79, AND VOICEOVER INTERNET TELEPHONE FOR
19.
IF YOU THINK THE 25-MEG SERVICE FOR 59 AND PHONE, $78 A MONTH,
AND THAT'S JUST ABOUT, ON AVERAGE WHAT PEOPLE LIKE ME ARE
PAYING FOR OUR VERIZON PHONE AND DSL SERVICE.
AND THAT'S A VERY STRATEGIC BIT OF PRICING BECAUSE IT THEN MAKES
IT, I THINK, ATTRACTIVE FOR VERIZON CUSTOMERS TO BE ABLE TO
MAKE A SWITCH AT NO ADDITIONAL COST EVEN THOUGH THEY ARE
GETTING BETTER SERVICE.
>> GENTLEMEN, TIM NEWMAN, BOB LABRIE, THANKS FOR COMING IN,
GOOD LUCK AND KEEP IN TOUCH, WE WANT TO KEEP TRACK OF YOU.
THANK YOU.
>> THANK YOU.