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Q&A
Challenges faced by smaller ISPs in NYCHA developments and decision-making process
0:36:25
·
3 min
OTI officials explain the challenges faced by smaller Internet Service Providers (ISPs) in NYCHA developments and the rationale behind pivoting away from the Internet Master Plan to Big Apple Connect. They discuss the limited success of smaller providers in attracting customers despite offering free services.
- Smaller ISPs had difficulty gaining significant market share in NYCHA developments, even with free services
- OTI officials cite this lack of adoption as a factor in their decision-making process
- The discussion highlights the tension between supporting smaller providers and achieving rapid, widespread connectivity
Brett Sikoff
0:36:25
Mhmm.
0:36:25
Yeah.
0:36:26
And and factored into the analysis about pivoting away from the Internet Master Plan to Big Apple was the fact that a number, to your point, Chair, a number of the smaller Internet service providers were providing service to Niger residents under, like, a pilot of sorts, you know, what was termed the RFEI to the Internet Master Plan.
0:36:45
And while we have tremendous relationships with these companies, and we support them as much as we can, and we encourage their participation in the marketplace, frankly, didn't make huge dent in terms of getting customers, getting folks living in NYCHA to sign up for their service, which was entirely free, thanks to ACP at the time.
0:37:06
While ACP was in place, these smaller providers were able to sell their services, and it it really didn't move the needle on new broadband connections.
0:37:14
That's not to say they didn't do great work, and and, you know, we encouraged their participation, not just in NYCHA, but throughout the city.
0:37:22
But it ultimately didn't some people just didn't wanna go with the unknown guys.
Jennifer Gutiérrez
0:37:27
But prior to that thank you.
0:37:28
And prior to that, they had not been they were not contracting with the city.
0:37:32
Right?
0:37:33
These smaller providers?
Brett Sikoff
0:37:34
So they received a permit from NYCHA to be able to occupy the space in NYCHA to run their facilities through the buildings.
0:37:44
They didn't have a permit with OTI, I can tell you that.
0:37:48
But they did have a permit to occupy the space to be able to provide the service and to market their services to the public.
0:37:54
So they did.
0:37:56
And as I mentioned, the numbers just were not impressive.
0:38:00
Had they perhaps, and this is speculation that I probably shouldn't even say, but perhaps if their numbers were greater, you know, higher percentage of adoption, that may have factored in future decisions that we had made.
0:38:13
But the fact remains that folks just did not embrace the the smaller companies
Jennifer Gutiérrez
0:38:17
at the But they also didn't I mean, I think what what Altice and Charter are are getting or what it's costing us is significantly larger than what any of these ISPs had because they were not contracted yet, right, because they were in negotiation.
0:38:39
So I think it's it's not the same amount of resources obviously for the two providers in Big Apple Connect.
Brett Sikoff
0:38:48
I wouldn't exactly say that because they were the smaller providers, again, say they, the smaller providers were building out on their own dime with the expectation that the Internet Master Plan would come to fruition Mhmm.
0:38:59
And that there would be a city investment at at a large scale, as you know, hundreds of millions of dollars, even in the billions, to to complete that deployment.
0:39:07
So there was an expectation that the city would invest it.
0:39:10
So it wasn't like private investment versus city paying for Big Apple Connect.
0:39:14
There was always an expectation that the city would be fronting a considerable cost.
Jennifer Gutiérrez
0:39:21
But were not able to access any of that city funding?
Brett Sikoff
0:39:26
No, they were not.
0:39:27
Okay.
Jennifer Gutiérrez
0:39:27
And how quickly were Spectrum and LTs able to access the Citi funding?
Brett Sikoff
0:39:34
Well, again, mind you, it's just for services.
0:39:37
The infrastructure was in place.
0:39:38
We didn't have to pay for construction, which is a significant cost and one that the smaller ISPs would have to incur.
0:39:45
So it's strictly for services.
0:39:47
So as they were able to get customers online, you know, were able to pay per unit, a very low per unit rate for services that they provide under the big applicant contract.