News Release

 

To: Editors, News Directors

Date: April 22, 2004

For: Immediate Release

 

 

ACC Decision To Bring Better Phone Service,
More Options To Rural Arizona
ACC Approves Financing For Table Top Telephone Company

PHOENIX – Expanded availability of broadband connections, new fiber optic cable, modernized equipment and more reliable signals are part of an ambitious plan to upgrade infrastructure for rural Arizona phone customers served by Table Top Telephone Company. On Tuesday, the Arizona Corporation Commission approved the company’s application to borrow $11.2 million from the U.S. Department of Agriculture’s Rural Utilities Service (RUS) and an additional $6.5 million from the Rural Telephone Bank (RTB).

Table Top Telephone Company provides service to 5,185 customers, according to company general manager John Hayes. Table Top’s rural service area encompasses nearly 3,000 square miles in six separate exchanges. The firm serves customers in the towns of Aguila, Ajo, Bagdad, Sanders and Seligman. Table Top also serves the Inscription Canyon Ranch, Talking Rock Ranch and Whispering Canyons areas, all of which are north of Prescott.

Hayes testified that the company plans to use the low interest loans to improve and expand the telecommunications network. The improvements will take place over the next several years with the majority of the infrastructure expected to be in place by the end of 2008. Specifically, Table Top plans to:
  • Deploy broadband throughout the majority of its service territory;
  • Install 250 miles of fiber optic cable to link its exchanges;
  • Install 70 miles of new fiber optic distribution cable (lines to customers and home sites);
  • Install 100 miles of metallic distribution lines;
  • Adding new electronic switching and transmission equipment;
  • Construct a new central office facility near Prescott;
  • Modernize and/or replace microwave radio sites to improve signal quality; and,
  • Connect as many as 2,100 new subscribers who are expected to request service by 2008.

According to the Arizona Corporation Commission staff, Table Top is experiencing growth rates of between nearly three percent and as high as almost 12.5 percent, depending on the exchange.

Of Table Top’s 5,185 customers, approximately 500 receive broadband service today. Another 450 customers have dial-up Internet service. In the Sanders exchange, Hayes said, Table Top offers limited broadband capacity but by August or September of this year, Table Top will be able to offer broadband to approximately 75 percent of those customers.

Hayes also indicated that without the financing and improvements, the company would be unable to serve residents of Navajo lands near Sanders. Table Top’s present infrastructure does not cover a large enough signal area to allow those customers to get reliable phone service.

"I am very pleased to vote in favor of this application," Commissioner Jeff Hatch-Miller said, "Table Top Telephone is providing a much needed service, like broadband, to areas that have been underserved for too long."

"This case isn’t a matter of bridging the digital divide, this is about closing a chasm," Commissioner Kristin Mayes said after the vote.

Commissioner Mike Gleason said he was especially persuaded by Hayes’ testimony. "Mr. Hayes said there are more than 400 residents on or near Navajo lands who cannot get phone service today. With this financing, those residents will be able to enjoy high-quality telephone and broadband services."

"Not only does this give people what most of us take for granted – a home phone line," Commissioner Bill Mundell said, "this investment in infrastructure also brings new economic development potential to rural Arizona."

"These federal loan programs like the RUS and RTB loans give small companies like Table Top much needed flexibility," Commission Chairman Marc Spitzer said. "Table Top doesn’t have to take the money in one lump sum, it can draw on the funds at each phase of the build out. This way, the company has the capital it needs for each construction phase and can keep the loan on pace with cash flow."

All five Commissioners voted in favor of Table Top’s financing package.

 

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