(NEW YORK)–Verizon dropping some customers in rural areas due to data usage shows the need for a cost effective solution for last mile delivery into these markets.
It was learned that Verizon Wireless plans to disconnect 8,500 rural customers from its network, citing the data charges the customers rack up in these areas.
The customers live across 13 states, including Alaska, Idaho, Iowa and Indiana and they account for 19,000 lines. In addition, some of the customers live in Kentucky, Maine, Michigan, Missouri, Montana, North Carolina, Oklahoma, Utah and Wisconsin.
To be fair to Verizon the delivery of high datta usage to these areas probably just wasn’t cost effective, and probably put an undo burden on the rest of their network for so little return.
What could be the reason for this high data usage in rural areas? Video streaming! If would be fair to think, just like with many younger people now, that more people in rural areas are “cutting the cord” to standard cable services, and are increasing what they call “binge watching” from popular streaming services like NetFlix and Hulu. If you’d like to see some statistics that can somewhat support this hypothesis relating age and different entertainment consumption, click here for the statistics on cord cutters, as well as consumption numbers by age bracket and more.
The ‘cord cutting’ trend isn’t new, but it does continue to grow and delivering the needed bandwitdh services to more rural areas who are more likely to be users of such streaming services is becoming an issue in search of a solution.
The solution in the past would be to lay optic fiber into these more rural areas, but as stated by some companies like AT&T and Google Fiber the cost to lay these expensive fiders into the ground are just way to much for the retun based on low customer rate.
So one solution is to use “wireles fiber” to deliver high volume broadband data, phone, and TV services to more rural areas. It is easier, and more important less expensive to get these services to these customers utilizing new 5G technology.
One company offering a solution in this area is Hammer Fiber Optics (OTC:HMMR), which recently teamed up with Go Long Wireless, Ltd. (GLW), a company based in Sarasota Florida that holds 12 GHz Multichannel Video Distribution and Data Service (MVDDS) spectrum in 49 U.S. markets, reaching a population in excess of 29 million.
This new partnership will enable Hammer Fiber to expand its successful business model of delivering a bundle of high speed broadband, TV, and VoIP phone service to these additional 49 markets, including underserved rural communities.
It seems more are taking note of this issue because Hammer Fiber released an 8K stating that on Sept. 5th Mark Stogdill, the President & CEO of Hammer Fiber Optics Holdings Corp. met with several staff members of the Wireless Telecommunications Bureau, and Ms. Rachael Bender, Legal Advisor, Wireless and International, Office of Chairman Ajit V. Pai of the Federal Communications Commission (FCC).
The meeting was requested through an Ex Parte Notice filing with the FCC to discuss matters of material importance to the Company, which included expanding flexible use in the mid-band spectrum between 3.7GHz & 24GHz, the use of spectrum bands above 24GHz for mobile radio services, and the application of Verizon Communications Inc. and Straight Path Communications Inc. for transfer of control of licenses.
This is a bullish indicator for Hammer Fiber, their ability to reach and deliver broadband services to more rural areas using their ‘wireless fiber’ technology, and that the FCC is taking note of this problem. But for now customers in more rural areas have to balance out their data usage with their new life style trend of streaming entertainment online until this last mile delivery issue to those areas can be resolved.
About Hammer Fiber
Hammer Fiber Optic Holdings Corp. (OTCQB: HMMR) is a telecommunications company investing in the future of wireless technology whose holdings include Hammer Fiber Optic Investments, Ltd. D/B/A Hammer Fiber, a New Jersey-based Internet Service Provider (ISP) that offers internet, voice, video and data services in New Jersey, as well as carrier services in Philadelphia and New York. Hammer Fiber serves residential and small business markets with high capacity broadband, voice and video through both direct fiber as well as its wireless fiber platform, Hammer Wireless® AIR technology. For more information visit http://www.hammerfiber.com
About Go Long Wireless
Go Long Wireless, LTD is a Florida based wireless spectrum holding company with an extensive spectrum portfolio designed to enable ultra-broadband services to rural and urban communities across the U.S. For more information please email firstname.lastname@example.org
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