When will Directcom Offer Cable TV in Eagle Mountain?

Cable TV is something we have looked at launching ever since 2006, when we started in Eagle Mountain. We would like to offer an IP-based, digital cable TV service over our fiber to our customers.  We have explored a lot of different options over the years, and in fact are currently testing an IPTV product in our office. However, right now there just isn’t a business model to make investing in a new digital cable TV head end possible. Here are a few obstacles we have to consider:

  1. IPTV start-up costs are still too high.
  2. There aren’t enough pay TV customers in Eagle Mountain to ever recover the initial investment. (This is also the reason why we haven’t seen any other more well-known cable TV providers come into Eagle Mountain.)
  3. The margins on TV are too small, and are getting smaller every year as programming gets more and more expensive (even the local channels like KSL now charge a couple of dollars per sub just to rebroadcast their signal.)
  4. Dropping a couple of million $ into an IPTV venture while stating at 0 TV customers would be incredibly risky.
  5. The feedback from past surveys on how many customers in Eagle Mountain would switch to a cable TV product didn’t show a huge interest.
  6. TV is a very competitive industry, dominated by a few megacorporation’s that also own the content.
  7. Keeping up with the technology is a financial drain requiring constant upgrades.
  8. The majority of our customers, according to our surveys, now say they have switched exclusively to online video streaming for their viewing needs, (Netflix, Hulu etc), rather than paid satellite TV.
  9. We would rather spend our money on pure broadband investment, because that is the future of TV viewing.
  10. Our priority is to always  be the best internet service provider in Eagle Mountain, and we worry that spending our time and energy on cable TV would simply be a distraction from our core business. We have enough competitors to worry about already.

With all of that said, we are not ruling out anything if we have enough customers who would be committed to a digital IPTV product, or if a path opened up for us to provide that economically. Right now it seems most people are pretty happy with the growing streaming video viewing opportunities.

Eagle Mountain Fiber Construction Plan Update

We held a construction meeting yesterday to plan the fiber build to the remaining Eagle Mountain subdivisions that are still on copper lines. This year we will continue  upgrading  Eagle Point, and this winter, begin construction in Mount Airey—replacing the old copper plant with brand new fiber optic cable direct to each home.

We know that those of you still on copper in other areas are anxious to know how soon we will be bringing fiber to your neighborhood. The good news I have been authorized to share is that by the end of 2015, we plan to have the entire southern part of the city totally upgraded to fiber. We also laid out a 7-year plan to build fiber to every remaining home in the city.

This is obviously going to be an enormous project, requiring millions of investment dollars, but we feel that each person in Eagle Mountain deserves fiber to the home, despite the current federal government’s objections to remote areas having better networks than the larger urban centers. This is our community, and we are committed to ensuring the economic vibrancy of Eagle Mountain.

Directcom fiber optic cable splicers, Rod and Lani, with our fiber-splicing trailer.

The time is coming when there will be large economic opportunity gap between those who have fiber optic cable to their homes, and those without. We want you to be on the right side of that gap—the up side, the fiber haves.  Having access to unlimited broadband is the future to economic development and personal educational opportunity, and someday each home that wants to be part of the global information economy will probably require minimum speeds of 100 Mbps. Fiber is essential. Fiber is the future.

This build will be unprecedented along the Wasatch Front, especially since all public utilities are required to be buried in Eagle Mountain, so bringing fiber to every last home will require thousands of underground bores. We hope you will be patient as we roll out this plan and ensure that Eagle Mountain will always have the premier fiber broadband network in Utah.

Directcom construction crew with new reflective jackets so they won't be run over by any jogging strollers in Eagle Mountain.

Directcom construction crew, outfitted with new reflective jackets so they won’t be run over by any jogging strollers in Eagle Mountain.

Solutions to Potential Bottlenecks

We believe we may have uncovered a potential bottleneck in the uplink to our main fiber backbone provider, which may be affecting certain customers. Although we have several redundant backbone routes currently in place, they are not all equal, and this one bottleneck could potentially be causing speed issues for some customers. We are currently working with our main carrier to resolve this issue.

However, the good news is that this winter we will complete another fiber interconnection with another premier interstate fiber partner, which will give us another very robust routing option.

Also, as part of our effort to continually improve your network, we have hired an outside network auditing firm to conduct an audit of our internal fiber network to ensure there are no problems internally in Eagle Mountain. We will keep you posted as this story unfolds.

Some Exciting Changes To Our Cable TV Lineup for 2012

Channel 64- Versus is now NBC Sports Network –You have probably already noticed this name change on your channel guide. This change actually occurred back in January. This is the third change for this network, which began as Outdoor Life Network, then became Versus in 2006 and focused more on sports events, finding a special niche with frequent NHL broadcasts. In now evolving to the NBC Sports Network this year, NBC appears to be making a real push to compete with ESPN for sports programming. The network and its broadcast sibling already out ESPN in April for a new 10-year, $2 billion NHL package, and investing $4.38 billion on a comprehensive rights deal for the 2014-20 Olympics. Find out more about this network at http://nbcsports.msnbc.com/id/30092015/ns/sports/

Channel 71 – SoapNet to be replaced with Disney Junior. This change is scheduled for June 1. We are pleased to offer this to our customers, and are excited about this change, since Disney Junior was the channel that has been most frequently requested this year. All your favorite kids shows from Disney Channel are now on Disney Jnr, including characters such as: Charlie and Lola, Rolie Polie Olie, Little Einsteins, Gaspard & Lisa, Mickey Mouse Clubhouse , Jake and the Never Land ,Handy Manny , Octonauts and more.

To see what other shows are on Disney Jnr, go to http://disney.go.com/disneyjunior/disney-junior-on-tv/about-our-shows/index-1834261

Click here for a current schedule http://affiliate.zap2it.com/tvlistings/ZCGrid.do?aid=disneyjr

Channel 66 – The Mountain (Mtn) will go dark May 31. This was inevitable after the loss of the major market players in the conference, including BYU and Utah. Read more at http://www.multichannel.com/article/482815-The_Mtn_to_Close_in_Wake_of_Upheaval_in_College_Conference_Landscape.php

We have decided to replace the Mountain Channel with CBS Sports Network, since many of the conference games look like they will be shifting to that network. This change will also take effect on June 1st.

“Sources indicate that CBS Sports Network and the Mountain West Conference are close to finalizing a deal for the conference’s rights that will wind up increasing national distribution for the Mountain West’s upcoming football and basketball games. CBS Sports Network is in around 45 million homes. Jointly owned by CBS Sports Network and NBC Universal, the Mtn is in around 13 million homes.”
Read more: http://aol.sportingnews.com/ncaa-football/story/2012-04-05/the-mtn-mountain-west-tv-channel-shutting-down-may-31-cbs-sports-network#ixzz1tHHO1Xdv

 

Are There Any Limitations To DSL Service?

While we offer 50Mb to customers with fiber to the home, our current limit on DSL is 20Mb. Customers often ask why can’t we push out 50 Mb to their home over copper lines, like we can provide over our fiber optic lines.  We are also sometimes asked by DSL customers why they may not always be seeing the full 20Mb they are allocated on our servers. This article is an attempt to answer these questions, by explaining what some of the factors affecting DSL service are.

Many of the limitations associated with regular DSL service lie simply in the physics or nature of metals.

Copper is of course a metal, and although the data being sent over the line is a digital signal, it still travels electronically as a wave over the metal line. However, a real wire is always a more superior way to deliver data than wireless, for obvious reasons. Any kid who has picked up a tin can with a string attached to it knows that.

Distance

Signals degrade over long distances. That is just a law of nature. Copper is a good conductor, but it’s not a perfect conductor. Inside any metal line, there is resistance as the electronic waves travel through the metal. Because of this fact, there is a limit to how far DSL can travel from the main telephone switch. Usually it can only go 2 or 3 miles at the most before you need to build another office to repeat that signal. A regular analog telephone conversation can be pushed out much further, because signal degradation is not as critical, but to deliver internet data , with the digital packets being sent in very precise, technical ways, any kind of interference, loss of signal or degradation is going to cause problems.

The wonderful thing about  fiber optic cable is that it overcomes many of the limitations of metal. Fiber carries an all-digital signal, so is better suited to today’s digital communication devices. Also, there is no interference from electric lines or magnetic fields like you experience with copper, so the signal is clearer, which will result in a better transfer over great distances. There is no resistance in the fiber optic cable like metal lines have, so the signal can travel infinitely, because it’s light, not an electron flow, so we can now serve customers who live far away from the central phone office with products like broadband, which is vital in the rural areas. Fiber optics will open up whole new markets of people who previously were too far to pick up a DSL signal over copper.

Anyway, with that said, it is possible that in an all copper network, homes closer to the main office would probably get better DSL signal than homes very far away from the office. In Eagle Mountain, this is not usually a problem—we have fiber to all of the neighborhood nodes or DSLAMs (digital subscriber line access multiplexer, pronounced dee-slam). About half of the homes in Eagle Mountain now have fiber to the home, but even where the final loop from the DSLAM to the home is still copper, that is just a very short little section of copper, so distance doesn’t often come into play. But, in our more rural exchange areas in Idaho, where a farm might be 15 or 20 miles from our central office, without fiber opics, that home could not get DSL. Homes at the edge of our range of 2 or 3 miles from the DSLAM are not going to be able to get our full 12Mb or 20Mb that we offer on DSL, but they might get a portion of that.

 Signal Frequency

Did you know that DSL (which stands for Digital Subscriber Line) was originally developed to deliver video over a telephone line? Back in the 1980’s, the telephone companies were looking for ways to use the extra bandwidth that was unused in their copper lines. A typical copper telephone line has about 1100KHz of bandwidth frequency available. The plain old telephone service was only using a fraction of that frequency—a maximum of 3.5KHz. We already had this fantastic network laid to each home, and so thought we could use all the extra space in the line to deliver television digitally to the customer. (Telephone companies are still looking for cost-effective to do this in 2012.) Anyway, luckily for telephone companies, a fantastic thing came along in the mid 90’s called the Internet. Suddenly, a real customer need developed for DSL—we could use that extra frequency to deliver data to connect people to other computers all over the world. DSL as we know it exploded into various different specs to deliver data more effectively. So, the DSL signals travels on the same line as the telephone signal, but at higher frequencies, and it takes up a lot more of the bandwidth in the line. (This is why we still hand out those DSL filters, so you won’t  hear the high-frequency noise of the DSL waves on your telephone.) However, there is still a technical bandwidth limit on just how much you can fit through the line at once, due to the nature of waves.

Wire Gauge

Very simply put: the larger the copper wire, the more physical space there is available to pump signal through. While gauge is rarely a problem with lines that we have installed ourselves, we have run into problems in houses or neighborhoods where a builder, developer or homeowner originally laid the line themselves. Let’s face it—developers and contractors like to cut costs wherever they can, and unfortunately some home builders didn’t always have the customers future bandwidth needs in mind when they laid the telephone line to the home. We do what we can once we take ownership of these lines to overcome these problems, but often they are hidden, since these lines have been buried for years, and there were no maps or records of what is in the ground in some older neighborhoods.

Splices

A splice happens when you join two lines. Splices are done by humans, and so aren’t always perfect. Thus, the more splices in a line, the less effectively it delivers data. In Eagle Mountain, there may still be some older homes with lines containing  splices made a long time ago by people who were not as well trained as our techs are today. We correct these when we find them, but if you are not getting your full bandwidth (say you are only getting 15 Mb when you signed up for 20Mb) a faulty splice somewhere near your home could be the problem.

Condition of the Loop

A loop refers to the last portion of the copper line between a neighborhood node and the homes. As already stated, some end loops are in better condition than others, depending on how they were constructed.

The Cloud/Internet

Many times, people will assume that their home broadband service is being slow, when in fact the bottleneck or slow speeds are somewhere else in the world. When you are sitting at your home computer, and you connect to a remote internet site, your connection to that computer, or server is taking various routes around the world, with a single request for a download being passed through ten, twenty, or more, different companies and ISPs. (Internet Service Provider.) There really is no way to know what routes your request has taken. The server hosting the website is usually in another state–maybe even in another country. The internet is simply millions of computers, servers and routers connecting, and who knows what condition their lines are in. The server you are reading from might only be connected to their local ISP with a 1.5Mb T1, or even worse. You, and us as your local broadband provider, have absolutely no control over what happens in the cloud. Even if you are on a 100Mb connection from your home to the telephone switch, if you are busy talking to a web server that is only connected to the internet by a 1.5Mb connection, the fastest speed you are going to transfer data from that website is 1.5Mb. All you can control is how much speed you subscribe to at home from your local ISP—give yourself the best chance to have a good experience online.

Bottlenecks

The limitations associated with delivering broadband is not only the physical line—the real limitation is the processing power of the routers, servers, or electronics at each end. When you connect to a remote server, the speed at which you can talk to that computer depends on how many conversations that server (or site) can handle at once. Even companies like Facebook, who invest millions of dollars on server farms to host their sites, have times when their service crashes, or slow days because the electronics on their end can’t handle the number of connection requests coming from people all over the world. There may be a bottleneck in the backbone somewhere along the line too—not enough fiber connections or processing power on some remote router on a particular line between Las Vegas and Seattle that some upper tier carrier has subscribed to.

Customer Internal/Home Network

Although customers hate it when their ISP claims the problem is inside their home, the reality is, for a majority of connection problems and trouble tickets, the problem is either user error, or faulty or incorrectly networked equipment inside the home. The usual suspects for slow speeds are modems and wireless routers. No matter what the manufactures claim, cheap consumer grade switches and routers, especially when they are broadcasting a wireless signal, do not always deliver the speeds they claim. To get the best out of your home router, wire each device to your router with a CAT5 ethernet cable. This will make a huge difference to your speeds. A more expensive router with more processing power will also make a difference, especially if you are connecting multiple devices simultaneously and each kid is trying to stream Netflix on a different device.

Despite any of these limitations, DSL is still a premium product, and after fiber, absolutely the best way to deliver consistent broadband data to any home. In Eagle Mountain we recently upgraded from ADSL2+ to VDSL so that we could crank up both the download and upload speeds to copper customers, and the technology to distribute DSL will keep improving, opening the way for more bandwidth. Potential customers often ask us when we are going to install fiber to their home, and they say they will switch to our service once fiber is there. The irony to this, however, is that often once the fiber is installed, they usually end up requesting either our 8Mb, 14Mb, or 20Mb service—all of which are currently available on regular DSL service. Only our 30Mb and 50Mb speeds are exclusive to fiber to the home customers.

Owning a Phone Company for Fun and Profit – A Look Back at 1970′s Directcom

One of our favorite customers found this newspaper article about the Lee May family and the roots of Direct Communications in her personal archives, and turned them in to us today. This appears to have been published between 1976 and 1979, presumably in the Power County Press or Idaho State Journal. Read for a fascinating and entertaining look at how life was in rural telecom in the 1970′s.

Click to Enlarge: Owning a Phone Company for Fun and Profit - newspaper article published about Direct Communications in the 1970's.

Leonard May and Lee May

Local Network TV Preferences and Cable Retransmission Survey Results

Thank you to all our cable TV customers who responded to our recent request to share your feelings with us regarding the local networks and costs associated with keeping both the Idaho and Utah affiliate networks. We had a good sample of our customers complete the online survey, and we appreciate those who, even though they didn’t have internet access, still took the time to respond via letter, email, or phone call.

As we explained earlier this year, the local networks have each year been increasing the wholesale price they charge to let us retransmit their broadcast signal over our cable system to you, our customers. This seems unfair, since anybody with an antenna can watch these local stations for free over the air—however, the affiliates  see a chance to put more money in their pockets by charging cable and satellite customers more, and so they will continue to raise their prices until we as cable companies say: “Sorry—we simply cannot afford to carry your channel anymore.” This was the case with KUTV—their demanded price raise for 2012 was more than we thought any reasonable person could bear, so we had to drop that feed. In the old days, when these networks were free to rebroadcast, the networks had a good case to make that we had to carry their channel on our lineup, because it was in the public interest. Now that they are forcing the cable communities to pay to watch their channel, this is no longer a must-carry situation. Luckily, in most areas, we also had a CBS feed from our Idaho Falls affiliate, which we could still offer our customers. We have to pay for this feed too, but it is significantly less than what the Salt Lake affiliate was demanding.

So, we wondered if you our customers would be interested in saving more money by having us only offer a single feed of each big network. The compiled results of the feedback were very interesting. You have spoken with a clear voice, and given us the direction you would prefer to see us go.

We received the most responses from Montpelier and Preston, which are close to the Utah border, but significantly, when we asked

Do you prefer to watch the Idaho or Utah local channels?

the majority of our customers, 59%, said Idaho locals.

In Montpelier only, this broke down to exactly 50/50 for Idaho and Utah, and the highest response for Utah was in Paris, where 80% said they prefer Utah locals.

When we asked What is your absolute favorite local channel to watch?

The top answer was NBC – KSL (Salt Lake), and the second most popular was NBC – KPVI (Idaho), with CBS – KIDK (Idaho) and NBC – KPVI (Idaho) at an even percentage  third spot. The least popular were the Fox feeds, and apparently the CW does not have a lot of viewers in rural Idaho (which may not be a surprise to the executives at the CW, who serve up a lot of edgy teen soaps like Gossip Girl.)

The reason why people said they watched their favorite channel was clearly Local News (48%) with Broadcast network shows (eg: CSI, VOICE, American Idol etc) coming in second at 31%.

The question we were most interested in was “If you could save money on your TV bill, would you prefer us to only provide a single affiliate feed of each of the networks?” The results were split at 50% for and 50% against.

For further clarity, we asked “If, in order to save money on your bill, we have to drop the Salt Lake affiliates, would you still want to proceed with this?” and 59% said “No- I would prefer to pay the full re-transmission fee of $4.50 to keep the Salt Lake affiliate feed.” We also especially had a lot of people without internet service write in and ask us to not drop any of the feeds because they like to watch both the Idaho and Utah channels.

We also wanted to see a relative comparison of how important each local channel was to our customers, and the results of that closely mirrored the results of “What is your absolute favorite local channel to watch?” What we were looking for here was if there were any channels that people would prefer to drop rather than continue to pay for.

Once again, the CW and KJZZ fared poorly, as well as the salt lake ABC feed. From the results, these would probably be the only good candidates to drop from our lineup; however, not surprisingly, these also happen to be the least expensive to carry (true market economics at work) and we would probably not save enough money to make it worth angering the customers who do enjoy those channels. However, these results from real customers do provide us with a good bargaining tools for next year when affiliates like the KTVX (ABC in Salt Lake) want to raise their prices again—we can show that they are simply not very popular relative to other channels in our market.

The comments at the end of the survey had a common theme, mostly wanting us not to change the current lineup, such as:

  • “I like the channels we have. There is a good selection”
  • “leave things as the same, I like what is there”
  • “stop changing things, happy the way they are now..”
  • “I love the channels we have and was saddened when channel 2 from utah was dropped.”
  • “I will pay the extra $4.50. and have been satisfied with the cable tv service for YEARS.”

We also had several comments and letters asking for Channel 2 to be brought back, no matter what the cost was, which we are taking into consideration.

At the end of the day, what we heard from this survey was that our customers enjoy watching both the Idaho and Utah locals, and are willing to pay the retransmission fees associated with carrying these channels, because they are all extremely important, mostly as a way of staying connected with the community live in, and people living in southeast Idaho clearly feel connected to both the Salt Lake City and Idaho markets. So, unless something else changes significantly, we will continue to provide both the Idaho and Utah locals, and unfortunately both you, and we as a company, will have to ride out these annual local retransmission fee increases as best we can.

Thank you for choosing Direct Communications. We appreciate your business, and hope you will continue to enjoy your cable TV service. We will always do our best to provide quality programming that our customers will really watch, with less fluff and filler channels that people shouldn’t have to pay for. You can feel confident that our quality line-up is still absolutely a better value than any satellite provider.

Cable TV Local Channel Re-transmission Surcharge Increase

As a result of substantial price increases by the local networks to retransmit their signals, the local channel re-transmission surcharge will increase to $4.50 on April 1, 2012.

While in the past, only the Utah local stations were charging a retransmission fee per subscriber, now most of the Idaho locals are also demanding payment. In the good old days, because they were using public airwaves, these local channels were relatively inexpensive to retransmit; sadly, this is no longer the case—they now are demanding fees higher than most cable channels (like History Channel or Discovery Channel) to carry their feeds. Unfortunately, they plan to hike up prices every year for the foreseeable future.

We are looking for ways to keep costs down on your TV bill. Earlier this year, we chose to drop the Salt Lake City CBS feed (KUTV) from our line-up rather than meet their demands, because we didn’t want to have to pass on their exorbitant fee to our customers.

We are currently still carrying both Idaho and Utah channels for most local networks. We could lower costs by only offering a single feed for each of FOX, NBC, ABC etc, meaning that you would only get either a Salt Lake City or Idaho feed to your town, depending on which designated market area you live in.

We want to know if you would prefer to drop dual Idaho and Utah feeds to keep the cost of retransmission lower. We need your feedback. Please visit our website or go directly to https://www.surveymk.com/s/directcom-local-tv to complete a survey about which channels you would like to keep.

Thank you for your business. We look forward to many years of providing you with the highest quality entertainment and connectivity. Please call customer service at 548 2345 if you have any more questions.

Sincerely,

Direct Communications

Calls Not Coming Through? You Are Being Discriminated Against By Big National Carriers.

Have you recently experienced any of the following:

1. Someone from a big city or out-of-state tells you they tried to call you but the call didn’t get through, or the call rang on their end but your phone did not ring?
2. A call came through to you but the quality was poor?
3. A call came through but the caller ID was incorrect?

Direct Communications strives to provide excellent service at all times, and we only install absolutely the most modern, state-of-the-art, telephone switching equipment available anywhere in the world. However, people who live in rural areas all around the country are reporting that calls to them are not getting through, or they are getting calls with poor quality. For example, when family from out of state tries to call you, they might be telling you they can’t get through to you or that their phone is giving them an error message.

The growing problem, as explained by the Foundation for Rural Service, lies “with the carrier used by the customer who makes the call, not your rural local telecommunications provider. The problem can only be resolved by the carrier used by the customer who makes the call. This nationwide epidemic is negatively affecting local businesses, public safety, and our relationship with our customers. Rural carriers have complained to the Federal Communications Commission (FCC) and state agencies. The FCC has created a task force to investigate and address the issue and rural telco advocates are encouraging swift and severe action against all of the providers at the center of the problem.”
-FRS, Calls Not Getting Through?

The FCC has recognized this problem and clearly identified large national carriers who are using below-standard, cheap long distance companies to save money, who don’t want to pay the costs to connect calls to rural areas, simply because it costs more money to connect  the call to remote areas. So, instead of terminating the call, they just drop it. Basically, they are discriminating against rural areas. The FCC put it very diplomatically when they recently stated on their website:
“The issue is complicated, but in a nutshell, the problem appears to be occurring in rural areas where long distance carriers normally pay higher-than-average charges to the local telephone company to complete calls.  These charges are part of the decades-old system of “access” charges that help pay for the cost of rural networks.  To minimize these charges, some long-distance carriers use third-party “least-cost routers,” which attempt to connect calls to their destination at the lowest cost possible. Sometimes, however, the calls appear not to be connecting at all.”
See http://www.fcc.gov/blog/new-year-solutions-rural-call-completion-problems

On Feb 6, 2012, the FCC released a new ruling to address this problem, stating that:

“Carriers that deliberately fail to complete calls to rural areas could face cease and desist orders, forfeiture, license revocations and fines of up to $1.5 million.”  The ruling is an important victory for rural telcos, who have seen a sharp increase in complaints from customers saying callers have not been able to reach them.

“These problems can have dire consequences,” the FCC wrote in the ruling. “Small businesses can lose customers who get frustrated when their calls don’t go through. Urgent long distance calls from friends of family can be missed. Schools may be unable to reach parents with critical alerts, including school closings due to extreme weather. And those in need of help may be unable to reach public safety officials.”

The FCC’s nine-page ruling references a variety of ways that failure to complete calls to another carrier violates existing statutes. The commission also said originating carriers could be liable for actions taken by least cost routers – other carriers who terminate calls for them.

“If carriers continue to hand off calls to agents, intermediate providers or others that a carrier knows are not completing a reasonable percentage of calls, or are otherwise restricting traffic, that is an unjust or unreasonable practice prohibited by section 201 of the [Telecommunications] Act,” the FCC said.

What can you do about it?
We as a rural telecom industry will continue to press the FCC to act against the large nationwide providers involved in these issues. You can help too by doing the following:

  1. Ask for the name of the long-distance carrier used by the person trying to reach you. Call us, your local provider, and give us details so that we can report the offending long distance companies. Include the name of the carrier used by the caller so that we can contact the carrier on your behalf to try and resolve the issue.
  2. Go to www.fcc.gov/complaints to file an informal wired telephone service complaint with the FCC against the carrier used by the person trying to call you (not your local service provider), and encourage the caller to do the same.
  3. Contact your Congressman and tell them to stop the discrimination against rural areas by the big carriers.
  4. Tell the person trying to reach you to report the problem to their long distance carrier.

What We Did in 2011

2011- Although this year was one of increased uncertainty for the rural telecommunications industry, with the FCC and federal administration threatening to cut major funding sources for rural areas under the guise of the national broadband plan, Direct Communications as a company made some important strides forward to strengthen our company, get to know our customers better, improve our products and offerings, focus on our core business, improve our competitive position in the markets we serve, and acquire new customers and revenue sources.

Overall, 2011 was a very good year. Our employees and customers should feel satisfied that we made a real difference to our communities, and improved the quality of life in both Idaho and Utah during 2011. That is what makes even us in marketing sleep well at night. We spent the year expanding our fiber network to the vital institutions that serve your rural areas, like schools, hospitals, city, county and government buildings, doctors offices, libraries, small and large businesses, and of course, homes.

We were excited to upgrade to a new Metaswitch IP switch in our Idaho exchanges at the beginning of 2011. Direct Communications was the first telephone company in Idaho to implement a digital switch several years ago, and this new central switch replacement was another pioneering step for rural telecommunications in Idaho. The old digital switch was about the size of an average living room. The new switch is about the size of a small refrigerator. A major difference between the new one and the old switch, besides the size, is that this new switch was developed to take advantage of all the newest computer and internet advancements, especially in its ability to use IP protocol, to talk to modern electronic devices, like IP phones, computers, routers etc., and work on a fiber-optic network.

In Eagle Mountain, the year began with some great publicity as Direct Communications was awarded the 2010 Best Business of the Year by the Lehi Area Chamber of Commerce. http://blog.directcom.com/2011/01/19/direct-communications-awarded-2010-best-business-of-the-year/

After months of work, Direct Communications was able to open the doors to their new building on Campus Drive in Eagle Mountain in February, 2011.  Our grand opening was held in June, along with the ribbon cutting of the Eagle Mountain City business incubator program. The building has 8 “pods”, or office spaces, approximately 2500 square feet each.  Direct Communications houses four of the pods, Beyond Limits Physical Therapy occupies one pod, and the Eagle Mountain City incubator program has the remaining three pods.  After working in two separate areas for several years, Direct Communications was excited to have all of their employees at the same location. This new building signified an important coming-of-age for DCCV, which began as a start-up in the back of the fire station in 2006, and employees who remember all sharing a single bathroom and welcoming potential customers into the reception desk/storage area/stairwell, now had their own offices with hardwood trim—an unimaginable prospect 5 years ago. For more about the building see http://blog.directcom.com/2011/10/06/opening-ceremony-ribbon-cutting-for-new-direct-communications-building-in-eagle-mountain/

We began the year with a couple of new marketing initiatives to launch our new brand position and tagline of “faster streaming broadband” and started by giving away a year-long subscription to Netflix streaming to all new customers in January.  In February we gave away a Roku streaming media player to all new customers. In June, to coincide with Pony Express Days, we gave away a Wii to new customers, which enjoyed about the same success as the Xbox promotion the previous year. All of these device promotions were designed to migrate customers towards using streaming video as their primary entertainment source, because that not only increases the value of our service from a commodity to a premium product, but also, once they become dependent on their internet for video entertainment purposes, they are less likely to leave us for a wireless competitor. We conducted a couple of customer survey during the year, and found that 66% of our customers said they now use online streaming of video as their primary entertainment source.

Also during June, we announced new broadband speeds for all customers, with our basic speed starting at 8Mb, and our fastest speed on offer at 50Mb. This was designed around our main wireless competitors offerings, which had 7Mb as their top speed. Of course, by the end of the year they had also reacted and changed their packages to advertise 10Mb and 15Mb speeds.

After Pony Express Days we cut back on advertising until December, when we rolled out a Kindle Fire as a Christmas promotion, which emphasized making the internet fun—since the new Kindle could stream video, download apps, and play games. The Kindle promotion ended up being our most successful marketing campaign of 2011.

However, 2011 was an interesting year for marketing with the maturing of social media, which for the first time played an important part of our integrated marketing, and opened up a new target media market for us, since we could now target internet customers living only in Eagle Mountain and we began spending a significant portion of our advertising budget on facebook ads.

We began the year by splitting our facebook page into two separate pages for Idaho and Utah, to make it more relevant to each market. Acquiring fans was a slow process at the beginning, until we learned the only sure way to entice more customers to our page was with online promotions for facebook fans.  By the end of the year we had over 500 customers on our Eagle Mountain facebook page. See  http://blog.directcom.com/2011/06/14/first-winner-of-directcom-monthly-facebook-fan-contest/

Navigating social media has been a learning experience for us, and we have had to learn to take the good with the bad, as dissatisfied customers also like to use our page as a soapbox, but overall it has been a positive experience for both the company and our customers, and we actually implemented a lot of good suggestions made by customers on our page through our interactions this year.

We presented on the subject of social media at the annual Utah Rural Telephone Association meeting in St George.

Direct Communications Cedar Valley’s own Brenda Caldwell was named Utah Valley’s Raddest Receptionist by Utah Valley BusinessQ Magazine, and Brenda was featured in the Fall 2011 issue. http://blog.directcom.com/2011/09/29/directcoms-brenda-caldwell-named-utah-valleys-raddest-receptionist/

Probably the most significant change during 2011 was the sale of our wireless internet business to Digis, after being one of the first companies in southeast Idaho to offer wireless internet over 10 years ago. We made this decision primarily so that we could focus on our core business of growing our fiber optic network in Idaho and developing our wired internet products, including our cable and DSL technologies. The money from the sale would be reinvested into developing the products where we have a real competitive advantage. Read more about this move at: http://blog.directcom.com/2011/10/13/sale-of-wireless-internet-assets-to-digis/

Immediately after the sale of our wireless business, we launched the ESPN3 broadband channel for our high-speed customers in Idaho. 2011 turned out to be a great year to offer ESPN3, because BYU football, which many of our customers follow, went independent largely on an ESPN broadcasting contract, and so most of their games were streamed online on ESPN3 this year.

We were also kept very busy working with the three major national mobile phone providers to construct and deliver fiber optic service to most of the cell phone towers in the area, so that they could offer more data to their customers, and we also now wholesale broadband service to most of our competitors in the area. Without an extensive fiber optic network, our rural economy in Idaho would not be able to function in this information age. As our tagline claims, we are the future of broadband technology in the rural areas we serve.

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