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Customers “Probably Don’t Need Higher (<1Mbps) Speed,” Editorializes N.M. Newspaper

Sometimes you can’t please some people no matter what you do.

Kit Carson Electric Cooperative’s $64 million fiber-to-the-home expansion project will finally bring 21st century broadband speeds to northern New Mexico. The electric co-op intends to deliver broadband speeds up to 100Mbps to 20,000 largely rural residents and businesses in Taos, Colfax, and Rio Arriba counties who have had limited access to cable broadband or live with speeds often less than 1Mbps from CenturyLink-delivered DSL.

“It’s a whole new ballgame for rural New Mexico,” shares Stop the Cap! reader Raul. “But the pinheads at the local weekly newspaper are ringing their hands over the project, suggesting only businesses deserve 100Mbps while the rest of us should be satisfied with speeds under a megabit per second.”

Indeed, editors at the Sangre de Christo Chronicle are wringing their hands over the project:

But many of us in the Kit Carson service area already have Internet service — and we’re completely happy with it. Kit Carson CEO Luis Reyes, Jr. said a large portion of the organization’s electric customers are currently under-served by other providers with Internet speeds of less than one megabit (1,000 kilobits) per second.

We have no reason to doubt that, but many of these customers probably don’t need the higher speeds. For the Internet customers who use the Internet for email, Facebook, news and other basic functions, Kit Carson’s prices will be most important. Most of us will not pay more for faster Internet speed we don’t need, but we will consider switching to a local provider if it offers identical or better service and prices.

“CenturyLink barely delivers DSL today, and has shown no interest in investing substantially in northern New Mexico, and outside of concentrated built-up areas there is no cable competition,” Raul says. “Kit Carson is the only local concern that has shown any real interest in making our community better, and the local newspaper is complaining about it.”

Proposed service area for Kit Carson Electric's new fiber to the home network serving northern New Mexico.

Kit Carson Electric’s project will provide a true fiber-to-the-home service bundling television, telephone, and broadband service — a substantial upgrade over what the telephone company has on offer.  With speeds far beyond what cable and phone providers in New Mexico are accustomed to providing, the region stands to benefit from entrepreneurs building digital economy businesses over a broadband network that can actually help, not hinder online development.

Currently, area residents pay CenturyLink up to $55 a month for 1.5/1Mbps DSL service.  Residents are so excited by the prospects of much faster speeds at significantly lower prices, Kit Carson Electric has developed an innovative stop-gap service for residents still waiting for direct fiber connections — fiber-to-wireless service.  New and existing customers can sign up for the service for a $100 installation fee and choose from three service tiers:

  • 3Mbps — $29.95/month
  • 7Mbps — $39.95/month
  • 10Mbps — $49.95/month

A three year contract is required (early termination fee is $200).  But customers who eventually obtain Kit Carson Electric’s fiber service will automatically satisfy their contract requirement.

“Kit Carson’s wireless project already blows away CenturyLink’s speeds and pricing, and that is for inferior wireless,” Raul argues. “The Chronicle doesn’t have a clue.”

We can’t understand the newspaper’s concerns either.  Kit Carson Electric has already demonstrated their prices (and interest) in northern New Mexico is superior to that of CenturyLink, owner of former Baby Bell Qwest, which serves New Mexico.

Republican Sen. Jeff Bingaman is thrilled with Kit Carson’s broadband initiative.

“This major investment in broadband technology is exactly the kind of project I had envisioned when I voted for the American Recovery and Reinvestment Act,” U.S. Senator Jeff Bingaman said. “This grant is not only creating jobs now in northern New Mexico, it is laying the groundwork to attract new businesses, improve healthcare services and create new education opportunities in the future.”

The electric co-op has been successful operating non-profit businesses selling propane, telecommunications, and economic development space.  The fiber project will also allow the electric utility to deploy “smart grid” technology to increase the efficiency of their electric service.

A groundbreaking ceremony at the broadband project’s command center held this past summer also coincided with a public emergency communications network upgrade which will increase the efficiency and reliability of first responders and other emergency and public safety agencies.

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  • Ernesto Honez: Was that a confirmed and signed "contract"? Was it verbal? Was it sent out in a letter as bulk mailing, or with a first class stamp? Was it's delivery...
  • Matt: I just got off the phone with AT&T. I called saying that I found a promotion through Time Warner for $34.99 for 15 mbps and I am trying to cut dow...
  • Phillip Dampier: It first went to a handful of test markets in upstate New York (not Rochester) and then has been redesignated as a feature enhancement in Maxx markets...
  • Steve Rea: Any idea when the new DVR is coming to Rochester? I remember a story you posed over 2 years ago from the CEO of TWC at the time! saying it was comi...
  • AustinTX: James, my suggestion would be to switch to TWC rental modems, and fry 2-3 of them over the course of several weeks by running 24v AC into the coax con...
  • Dragos: For 1Gbps in Romania we pay around 12 EUR (VAT included - 24%). http://www.rcs-rds.ro/internet-digi-net/fiberlink?t=internet-fix&pachet=digi_ne...
  • James R Curry: Hey, Phillip - While not related to Comcast directly -- I rent my modem from TWC, and while I'd rather buy one outright, there's one big factor ...
  • Sean: I believe that there are issues intermixing DOSCIS 2/3 modems on a node. It's been about 5 years since I've worked with a CMTS so I am by no means an...
  • AustinTX: Yep, this isn't about "your old modem isn't capable of the wonderful new speeds we're providing to your service tier", it's about "we know your custom...
  • MJ Lee: This is strange. I did get a letter from Time Warner saying my apartment was qualified for Time Warner Cable Maxx, but when I applied for it, I got an...
  • Tim: You know this is overstating the case ... unlimited data adsl2 plans are available from $60 in Australia. Average price is about $90...
  • Phillip Dampier: I think 10/Gbps is available in the USA as well, on an obscenely expensive metro Ethernet or commercial fiber link provisioned by a telecom company. ...

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