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Q&A
People's Choice Communications and the role of smaller ISPs
0:26:58
·
4 min
Council Member Jennifer Gutiérrez inquires about People's Choice Communications, a smaller ISP claiming to provide free internet to NYCHA households, and their potential role in Big Apple Connect. Matthew C. Fraser explains the challenges with smaller providers and the decision-making process for the program.
- People's Choice Communications claimed to provide free internet to over 1,000 NYCHA households
- OTI chose to work with major franchisees due to their ability to provide both internet and TV services
- Challenges with smaller providers in delivering consistent service to all residents
- OTI is open to meeting with smaller providers but emphasizes the need for reliable, comprehensive service
Jennifer Gutiérrez
0:26:58
Is Verizon.
0:26:59
Okay.
0:27:01
So sorry.
0:27:01
Back to the People's Choice Communications.
0:27:03
They claimed that they were providing the service to public housing for free.
0:27:09
And so if if you are aware of that, my question to you is why they were denied the offer for free Internet service to continue providing that service to NYCHA at no cost instead of continuing the contract or keeping that contract with up Altice and now Verizon because Verizon was not a part of the launch.
Matthew C. Fraser
0:27:32
So we tried to incorporate all three as part of the launch.
0:27:35
It was largely based on rate plans.
0:27:38
And the two that have primary dominance was because they provided rate plans that were cheaper than
Jennifer Gutiérrez
0:27:45
Cheaper than People's Choice, than a free service provider?
Matthew C. Fraser
0:27:49
So free is that's an I think that's a novel term.
0:27:54
I I doubt that it was being provided for free, but we can check on that.
0:27:59
I think if you look at the state of affairs when we came in, NYCHA had a RFEI where they had a lot of small providers that were at the table that were charged with providing access.
0:28:09
Access in public housing at those rates were around 50%, maybe lower than that in some places.
0:28:16
And they were put to the test to deliver service and they failed.
0:28:20
We stepped in in less than a year and we provided over not a thousand but 330,000 people with access.
0:28:27
And that's because when we came in, we came in right after COVID when everyone was sent home, they didn't have access.
0:28:35
And for all of the small providers we are excited to work with them but we can't work with them when the when the cost is the people that are dependent on the service not having it.
Jennifer Gutiérrez
0:28:49
Is there any intention to work with a provider like this one or any other of the internet service providers that have been working in a lot of these communities as part of an expansion or stabilization of Big Apple Connect.
0:29:06
I know as part of the the plan that was released last week, the the intention or the goal to continue to expand into Section 8 potentially residences.
0:29:19
What is the role that some of these smaller ISPs will play in that?
Matthew C. Fraser
0:29:24
So I'd say Big Apple Connect as a program is more than just connectivity, it's connectivity and basic TV.
0:29:32
So it's two service offerings that's incorporated as part of one program.
0:29:36
Currently the major franchisees that can provide cable in addition to broadband, it's limited to Charter Communications, Altice, and Verizon.
0:29:46
Those are the three that sit on the franchise that are capable of providing it in those spaces.
0:29:50
And we we are currently looking to expand our service offerings for connectivity well beyond public housing into other spaces where people have applied for services like, as you said, like section eight or in some cases if you are we've got we've got some announcements that will be coming soon that will cover other large parts of the population.
0:30:14
We're seeking to leverage like we've shown evident from our tech spend, the MWB community as much as possible.
0:30:20
As it stands right now, we are the agency that has the highest utilization of MWB contracts.
0:30:25
That tells you that we're serious about spending in these spaces.
0:30:29
However, we will not make I'm reluctant to make a commitment about something that will not yield tangible results for the people that need access to services and we are constantly working with these providers to see how they can help us in the mission provide quick and fast access to the people that need it.
Jennifer Gutiérrez
0:30:54
Okay.
0:30:55
Just on just on some of the on a provider like People's Choice or just smaller, are are are you taking meetings with some of these providers that were providing some level of service?
0:31:04
Are you are they included in some some kind of a process to at least compete for the ability to provide a service?
Matthew C. Fraser
0:31:14
Yeah.
0:31:15
We we have taken meetings across the board.
0:31:19
OTI is a public service entity.
0:31:22
We're not closing the door on anyone on having a meeting.
0:31:25
In terms of providing services and contracts, as we make contracts available in certain spaces, they may openly apply to those contracts.
0:31:35
Big Apple Connect, as I mentioned, is not just a broadband services contract, it's a broadband and cable TV services contract which they're not eligible to apply for because they don't provide one of those services.