SF758 – Modernizing Telecom Regulation Addressing Market Competition & Obligation to Serve
Total Page:16
File Type:pdf, Size:1020Kb
SF758 – Modernizing Telecom Regulation Addressing Market Competition & Obligation to Serve © 2020 Lumen Technologies. All Rights Reserved. © 2020 Lumen Technologies. All Rights Reserved. Modifying statute to Expand Minnesota’s Broadband Market Competitive Market Regulation Obligation to Serve • This change recognizes a competitive voice • Lumen recognizes our Federal obligation to market – consumers are moving away from provide service where we are the only voice copper landlines option • Today’s “New Normal” is digital, Minnesotans • FCC Discontinuance Process still remains for have moved to cell, cable, broadband, VoIP Incumbent Local Exchange Carriers(ILECs) 56.2% wireless only • Our goal with this change is to have the ability to eliminate spending in copper where 16% wireless mostly competition exists, and further investment is 12.9% dual use uneconomic 7.6% landline mostly • Rural Digital Opportunity Fund entrants take on this obligation to serve in Jan. ’22 4.4% landline only • ILEC discontinuance at FCC even after new 2.9% no network connection/too remote entrant takes on the obligation • Avoids another costly market evaluation • Copper is at the end of its life-cycle – time to process with the State let go of dual obligation © 2020 Lumen Technologies. All Rights Reserved. Minnesota’s Competitive Voice Market Grouped by Type of Service for Minnesota No Usage/Too Remote,3% Landline only, 4% Landline mostly,8% Dual Use,13% Wireless Only,56% Wireless mostly,16% Wireless Only Wireless mostly Dual Use Landline mostly Landline only No telephone Service © 2020 Lumen Technologies. All Rights Reserved. Lumen’s Fiber & Home Service Internet(HSI) Investment in Minnesota 2018-2020 Fiber enabled living units built: Broadband Market Investment/Enablement & New Residential Services • 2018 – 17,902 • 2019 – 15,473 TOTAL INVESTMENT IN FIBER 2018-2020: • 2020 – 18,224 $43,635,560 TOTAL: 51,599 Households HSI Existing Market Expansion HSI Market Investment/Expansion • 2018 – 15,457 • 2019 – 17, 453 TOTAL INVETSMENT IN HSI 2018-2020: • 2020 – 3,756 $158,378,166 TOTAL: 36,666 Households © 2020 Lumen Technologies. All Rights Reserved. The Cost of Legacy Copper Lumen Copper Wireline Loss: -2000 – Today: (88%) -2020: (15.8%) -Annual Average: (10-15%) 2018-2020 Copper Capital Expenditure: -Access and maintenance: $14,289,568 -Road Moves: $42,764,732 • Current State and Federal subsidies are being appropriated for broadband – incumbent voice providers no longer have ability to capture rate of return • Copper as a voice technology is at the end of its life-cycle, no longer supported in the industry • These costs adversely affect our investment in Fiber and HSI. © 2020 Lumen Technologies. All Rights Reserved. Thank You! Andrew Schriner [email protected] 612.558.4158 Dana Bailey [email protected] 612.868.3749 © 2020 Lumen Technologies. All Rights Reserved. © 2020 Lumen Technologies. All Rights Reserved. .