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Folks in New England know that when the calendar changes to October, winter can't be far behind. Although the first snowfall is usually light, news of a "nor'easter" is enough to convince most rural residents that it's time for snow tires. These powerful storms and their wet, heavy snow make driving difficult. Hurricane-force winds can down phone and power lines for days at a time.
Verizon, the local phone company for many New Englanders, knows something about nor'easters. In fact, an aptly-named program called Project Nor'easter could bring rural residents a perfect storm. According to today's New York Times, Verizon may sell its 1.6 million local phone lines in rural Vermont, New Hampshire and Maine in order to focus its business on more profitable urban and suburban markets. Rural residents who surf the Web with dial-up connections would lose even their "dirt road" access to the information superhighway.
Unfortunately, the economics of providing broadband to rural areas may leave some New Englanders out in the cold. According to the National Exchange Carrier Association, the cost of upgrading existing copper lines from switching stations to remote residences can reach $5000. Government subsidies are available, but favor smaller carriers over large ones. For example, during the fourth quarter of 2006, tiny Vermont Telecom will receive a monthly subsidy of $24.34 per line while Verizon will receive only one-tenth ($2.42) of that amount. Any successor to Verizon would enter the local phone market on the same subsidy terms.
Winter driving in New England requires a good set of snow tires. If news of Verizon's Project Nor'easter is accurate, folks such as telecommuters, remote learners, and business owners will surely need them.
Steve Melito - The Y Files
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Re: Project Nor'easter: A Perfect Storm
