Is Maine losing Internet steam?

Editor’s Note: This is the ninth report in a multipart series about the availability of broadband Internet service in Maine.

Peter Reilly, Verizon’s spokesman in Maine, touts the phone company’s digital subscriber line service and the fact that it lowered broadband service prices to some business customers, but not everyone is impressed with Verizon’s performance.

Many believe Maine has lost considerable momentum in terms of advanced telecommunication services over the past decade. Gerry Dube, former director of UNET Internet Technology Services at the University of Maine and now a UM computer science professor, is one of them.

“There are now newer technologies that can provide high bandwidth much more cost-effectively. These are being deployed in many areas across the country, but not in Maine. Has complacency taken hold? I believe the current carrier [Verizon], with the mergers of recent years, is now focused on other areas of the country and does not appear willing to add to the current infrastructure in the northern New England states,” said Dube.

“The result is that states that just a few years ago envied our situation have now surpassed us in many ways. Connecticut and Rhode Island come to mind.”

Dube asserts that while the initiatives of the past 10 years did stimulate the deployment of substantial fiber-optic capacity across the state, it is mostly owned and controlled by a single carrier that is reluctant to upgrade equipment to newer technologies and is seemingly content to go on collecting revenues based on the current technology.

“In fact, the state of Maine had to renew its contract recently and, from what I understand, was offered the same rate and conditions that were negotiated in 1995, while communications costs elsewhere have plummeted or much greater bandwidth has become available at the same costs – yes, a real cause for concern,” said Dube.

While Dube once focused on telecommunications infrastructure in support of the broad UMS educational missions involving numerous sites, Scott McNeil, chief information officer at The Jackson Laboratory in Bar Harbor, is focused on cutting-edge genetics research and the telecommunications infrastructure necessary to support it.

“When Verizon made its investment in the early 1990s, we skipped a whole generation ahead, and we were extremely well-positioned for the better part of a decade. Now we are falling behind,” said McNeil.

“There is no doubt that consumers and businesses are hungry for more broadband services,” said Reilly. “They realize all that can be done with these services. Verizon wants to be able to serve these customers and meet their needs. Providing broadband services to as many people, as quickly as possible, is Verizon’s objective.

“Emphasis on operational efficiency continues to push enhanced levels of performance, and, as a result, the demand for broadband resources is at a premium,” Reilly said.

Broadband is a catalyst for economic development, innovation and growth regardless of the size of the business, he adds. Verizon also is planning to expand its FiOS, or fiber-optic, broadband and television service, but not necessarily in Maine. FiOS was launched last year and is seen by many in the industry as another example of a phone company broadening its service menu as part of a well-timed defensive strategy aimed at retaining customers.

Readers need to keep in mind that cable companies are moving quickly to offer phone services to many of their customers, along with their cable television and broadband services. Phone companies have forged alliances with satellite companies in many markets, while at the same time slowly rolling out advanced television services that flow over wired phone infrastructure.

One of the key debates in Congress of late involves recognition of the fact that to spur competition it might be necessary to grant phone companies a broad franchise, unlike cable companies, which have been required to obtain their franchises community by community.

“Verizon is building our FiOS network as fast as technically possible in communities across the territory the company serves. We expect to serve 6 million homes and small businesses by the end of 2006, with no Maine deployment plans announced at this time beyond Kittery and Eliot,” said Reilly.

Verizon is continuing to study fixed wireless systems, and is conducting trials in at least three locations, including Grundy, Va. Reilly indicates that Verizon is evaluating the results of these trials and has made no decisions about future deployment in Maine or elsewhere. The communications services market is very competitive and demands a technology-neutral and competitively fair regulatory environment applicable equally to all service providers, according to Reilly.

“The public policy framework for broadband expansion and growth must be based on the same principles that govern any technology-driven industry, including cable and wireless, one that provides stability and uniformity across the entire industry, is free from any form of economic regulation, and has common rules where they are needed for technical standards and public safety,” he said.

“As the distinctions between different [telecommunication] service providers are being erased by technological change and competition, policymakers are embracing that consumer-driven markets work better than those managed by the government, and that fostering investment and innovation through free and open markets is the only way to deliver the infrastructure required to support broadband service expansion,” said Reilly.

“This rapid growth, along with the governor’s ConnectME initiative, should make it obvious that Maine is no different from anywhere else in viewing expanded broadband service coverage as positively affecting community life and individual quality of life.”

Next: With FCC approval, Time Warner Cable is on the verge of acquiring the infrastructure formerly owned by Adelphia Cable in Maine. This could have a big impact on the rollout of broadband services in many parts of the state.