Having had a day or so to ponder the UTOPIA situation after attending
that meeting in Roy City with Qwest president for Utah Jerry Fenn,
I’ve come to a few conclusions.
Fix-it man
First of all, Mr. Fenn indicated that since he’s taken the helm of
Qwest’s Utah operations in September customer service has improved.
He mentioned 150 some odd new technical customer service representatives
were recently hired at $40-50,000/year salaries to handle DSL issues.
When Brad Peterson and I mentioned that we were aware of ridiculous
recent problems with DSL orders, Mr. Fenn demanded that we call him
personally and he would see that those problems would be solved
immediately.
One particular issue we’ve had to deal with is with a client in
Ogden. They ordered DSL about three weeks ago. The DSL service came online
the day they had said it would, but it was on the wrong phone line coming
into the business. They wanted it on their fax line and it was installed on
their voice line.
DSL being DSL, this introduced a lot of noise to their voice line. They
installed the Qwest-supplied DSL filters in the RJ11 jacks around their
business only to discover the fax line didn’t work anymore. The
filters only support one line while the RJ11 telephone jacks support 2
lines.
The client went to Radio Shack and purchased a set of filters which
worked with multiple lines. Meanwhile, we contacted Qwest and explained the
situation and said that we wanted the DSL service connected with a
different ISP than it was currently set up with. Qwest said they would remedy
the problem and assigned a new delivery date for the job.
When that date came, the DSL service that was working on the voice line
shut off. The ISP we asked Qwest to move the service to said they had not
received any turn-up notice from Qwest. A call to Qwest revealed that Qwest
hadn’t acted on the order. A new install date was assigned.
Qwest missed the next scheduled install date too.
Finally, Qwest came through on a third install date, but the DSL service
was set up with the original ISP and not the ISP we requested. In addition,
Qwest reconfigured the DSL modem/router and overwrote all the configuration
changes we had made which were necessary for the applications the client
was using.
Another call to Qwest resulted in another date.
That date was Wednesday - the day of the meeting I went to in Roy. I
told Mr. Fenn the particular Qwest problem I had been dealing with was
supposed to be taken care of that day, but I would let him know if it
wasn’t. I suspect he thought I was blowing smoke.
Well, this time the DSL service was gone.
Another call to Qwest and we were promised the service would be turned
back on within 24 hours.
The client called Qwest to confirm that change order. They were told the
change order didn’t exist in Qwest’s system and there was no
way anything could be done within 24 hours — the soonest anything
could be done would be closer to a week.
We’ve called Mr. Fenn and left him messages and e-mail. It remains
to be seen whether or not he’ll come through. One thing is clear,
though, from this experience it does not look like things
have improved at Qwest. They should change their name back to US West so we
can sarcastically call them “US Worst” again.
Demand for UTOPIA
In the Wednesday meeting, Mr. Fenn said UTOPIA’s take rate
estimates were ridiculously unrealistic and he said Qwest’s DSL take
rates were proof of it. He said, overall, people just don’t care
about broadband Internet access.
I’ve thought about that a lot and I think he’s right... if
UTOPIA was just about Internet access, but it’s not.
Most Utahns are paying $30-60/mo for basic telephone service depending
on how much long distance calling they do and what features (e.g. call
waiting, voice mail, etc.) they add to their line, etc. Most Utahns also
subscribe to Comcast cable. It’s been a long time since I had cable,
but I’m guessing the rates for an average basic cable subscription
are around $30-40/mo.
And this is for residents. Businesses, of course, pay more for telephone
service.
With UTOPIA in place, a different scenario unfolds. A resident or
business in a UTOPIA member city would be able to order phone service from
their choice of telephone service providers. They could order a television
service package from their choice of television service providers.
It’s not unreasonable to guess a switch from Comcast/Qwest to UTOPIA
service providers might save a person $40 a month or more.
Qwest may not be seeing the kind of take rates on their DSL products
that UTOPIA is forecasting for their service, but Qwest isn’t
bundling telephone, television, and broadband Internet into one package.
I think Qwest is making a big mistake to refuse to be a part of UTOPIA.
Another thing Mr. Fenn and his boys brought up in Wednesday’s
meeting was a chart which attempted to debunk the argument that
Qwest’s telephone rates keep going up. This chart showed the cost for
basic telephone service twenty years ago and showed what it would be today
if it had tracked the rate of inflation over that time.
This proved, said the Qwest-boys, phone service was cheaper now than it
ever was. They used that as a jumping-off point to say, “If it looks
more expensive, it’s because of all the taxes and fees the government
makes us collect that we didn’t have to collect before.”
It looked good on paper, but there was one big problem with it:
technology. Telephone service is driven by technology. You probably
couldn’t get call waiting twenty years ago. There was no voice mail
service — everyone had those cassette-tape driven answering machines.
In addition, the equipment Qwest used to manage their circuit-switching
network was a lot more expensive then than it is now.
Fast-forward to today. Almost every facet of telecommunications is
automated. The cost to provide services on a phone line like voice mail,
call-forwarding, etc. are nearly negligible. They’re standard
features on most company PBX systems, for example. Consider also the fact
that more people have more phone lines than they did 20 years ago.
A good example of how advances in technology have made
telecommunications significantly less expensive is long distance service.
Consider how expensive a long-distance call was twenty years ago and
compare that to MCI’s neighborhood calling plan now that offers
unlimited long-distance calling to other people who have MCI service.
The bottom line is this: Qwest can’t take credit for charging less
for telephone service. Technology took care of that and probably warrants
an argument that Qwest should charge less.
If and when UTOPIA does get off the ground, I think we’ll see just
how much less Qwest can charge to keep customers. Competition is always
good for the consumer.