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IP: AT&T and TCI- Seybold thoughts
From: Dave Farber <farber () cis upenn edu>
Date: Tue, 30 Jun 1998 20:07:56 -0400
From: Andys () Outlook com Sender: "Andy Seybold" <Andys () Outlook com> To: <farber () cis upenn edu> Dave- A short article that is appearing in my June newsletter. Thought it might be of interest to Ipers Best regards, Andy AT&T To Buy TCI by Andrew M. Seybold Thoughts To Ponder You have to wonder whether the folks at AT&T have thought this one out. Buying TCI gets AT&T into about 30 million homes--that's how many TCI cable subscribers there are. AT&T wants these 30 million customers, and more, to use AT&T for all of their communications: local phone service, long distance, cable TV, and Internet access. The customer will receive a single bill at the end of each month, and AT&T can get to them at every turn when they turn on their TV, surf the Internet, and maybe even when they make a phone call. What concerns us more than the merger itself is what lies ahead for those who opt for AT&T/TCI phone service. Here are a few of the issues as we see them: The Phone Company powers today's telephone system. In times of electric utility power failures, the phone still works. The Phone Company (formerly AT&T) built hardened sites for its switches, complete with back-up batteries and generators. While it didn't have to build such a robust system, it did. And it remains the service against which all others are measured. Does TCI have generators or battery back-up at its sites? Will phone service provided over the TCI network be powered by the network or by the AC power in our home (which goes out more often than we would like)? How reliable will our dial tone be? When a major storm or earthquake takes out our power, will it take out our phone service as well? How long will cable phone service be down? History shows that phone service in the U.S. is about 99.8% reliable. Cable service today is about 70% reliable. Is having dial tone 70% of the time good enough? Who will have access to my voice and data traffic? The way cable systems work today, all of the information capable of being delivered by the system is carried to every cable drop regardless of what a particular customer subscribes to. When TCI begins offering dial tone and Internet data service, will my phone calls and my data be sent over the entire cable system? Will they pass through a cable that goes into a hacker's house? Will he or she be experimenting to find ways to listen in? All known TV cable systems today have been breached. With the wired phone service, a pair of wires or combination of discrete circuits connects the phone in my house to the switch. My neighbor does not have ready access to a wire carrying my phone traffic. In times of emergency, The Phone Company can prioritize who gets phone service, balancing traffic until the entire system is back online. During a major disaster, it can keep emergency services phones on line while it cuts business and residential phones, bringing them up according to a pre-determined plan. Is the TCI cable system capable of prioritizing service, or will emergency services have to compete with granny calling to see if everyone is okay? Cable systems "leak" signals all over the neighborhood. The cables along the road leak, connections where the cable enters houses leak, and still more signal leaks from inside wiring. In order to compensate for these signal losses, The Cable Company pumps more signal down the coax cable. Does this mean that my dial tone and data will be radiated out into the ether for others to listen to or capture and use? Cable systems are not, historically, wired into office buildings. How does AT&T expect to offer local phone service to the business community within the TCI cable area? Will TCI be running TV cable to businesses? In Summary As you can see, most of our concerns have to do with how robust the service offering will be. AT&T set the standards for service reliability even during the worst of times. The Regional Bell Operating Companies (RBOCs) have continued the tradition. In most places, phone service is the utility with which we experience the fewest outages. Our phones are also the most critical of our communications tools. We use them for normal day-to-day chatting, but we need them in times of emergency. We need to be able to dial 9-1-1 and know that the call will be connected. We need to have faith that our burglar alarm alert will reach the central office. And we need to know that when we want to check on our aging parents across the country, there will be a circuit available to do so. Our nightmare is that once these companies agree to move forward with their services over cable, the folks in the trenches trying to make it work will find that they don't have the budget to do it "right." We could find ourselves living in a world where services we have taken for granted all of our lives are no longer a given. Is cutting corners the only way to compete in a deregulated world? What incentive do these companies have to get it right and keep it right? Yes, we can always go back to our local phone company, but most folks won't realize the chance they are taking until a crisis when they really need dial tone and it won't be there. I would like to hear what AT&T has to say about these issues, and I would like to hear from those who have given us deregulation. I want to save money as much as the next person. But not at the expense of having to wonder whether I will have dial tone when I need it.
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- IP: AT&T and TCI- Seybold thoughts Dave Farber (Jun 30)