Supporters make case for new Burlington Telecom ownership

The following is a statement issuedtodayby the Ting group:

For those of us in Burlington’s Tech Community, reliable and affordable high speed Internet and phone service is critical to our businesses. These services and this incredible gigabit infrastructure cannot be risked in the hands of anyone other than experienced professionals with the financial resources to ensure stability and expansion.

We applaud the efforts of Keep Burlington Telecom Local (KBTL), and while the idea of “local” appeals emotionally to us all, it does not outweigh the strengths of Ting as a company, or their offer.

We see in Ting a partner to not just operate Burlington Telecom, but to reach further. We’re especially excited by Ting’s recent additions to their offer. Only with a partner like Ting with their experience, resources, and vision can we take full advantage of this digital infrastructure to boost the entire community, and add yet another competitive advantage to attract the next generation of businesses and workers.

We believe that the benefits of a Burlington Telecom - Powered by Ting are extensive.

Ting is a stable profitable company with experience and expertise.

• The strength of Ting’s offer: $30.5M vs $12M from KBTL ($10M from Maine Fiber)

• Investment & Job Growth for Burlington

  • BT as Regional Ting Hub - $50M over 10 years = well paying jobs

  • BT as Ting’s Eastern Headquarters for Video Services = more well paying jobs

  • Burlington as Center for Research and Development = even more well paying jobs while leading Burlington’s brand for tech leadership.

• Ting’s commitment to keep all current staff: sales, support, outside plant, installation, engineering, finance, marketing - all stay local.

• Financial health: Ting is well capitalized with plans to invest further in BT. In comparison KBTL will start out with less than one month’s working capital, and will carry a high debt load.

• Customer Service: Ting offers an excellent track record with commitment to expand support hours. Consumer Reports surveys put them consistently at the top for their cellular service at 91%, and their Net Promoter Score is the highest in the world for a mobile phone operator (>70 versus typical incumbent scores of <20).

• Low Rates: Ting is committed to a 30 month rate freeze, backed by a history of never raising rates in either mobile or fiber segments. Of note - in looking at their mobile business their avg mobile bill is only $23/mo. KBTL offers no guarantee not to raise rates.

• Track Record: low-price competitive pricing model, local management, buy to grow - not sell. KBTL lacks any track record.

• Coverage Expansion: Ting’s commitment to finish reaching requested New North End and Downtown locations, plus subsequent plans to expand throughout Chittenden County. KBTL will “seek” to build out Burlington to 100%.

• Community Investment: Ting pledges to invest $250K into community and provide free co-working spaces, and Gigabit wifi zones. KBTL has only expressed support.

• Net Neutrality: this is important to us all and Ting’s CEO Elliot Noss, has long been a leading voice on this issue.

• Size: Not too big. Not too small. Just like Burlington.

Regardless of the risk and viability of Keep Burlington Telecom Local, it is our belief that Ting would be a much better choice for Burlington. We recommend that the Burlington City Council choose Ting to take Burlington Telecom to its fullest potential as a force for growing local jobs and opportunities.

Russ Scully - Owner, Scully Interactive, The Spot, WND&WVS

Ted Adler - Founder & President, Union Street Media

Kevin Owens - CEO, Select Design

David Gibson - Founder & President, Propeller Media Works

Sara Goldstein - Director of Content, Parent.co

Sean Hurley - CEO, Horse Network

Nathan Beaman - Owner, Urban Rhino, The Archives

Adam Bouchard - CEO, Agilion

Matt Dodds - Owner, Brandthropology

Jeffrey Harkness - Owner, Hark

Greg Brand - President, Bluehouse Group

Ann Pettyjohn - VP, Green Mountain Software

Ryon Frink - Former Ting Customer

Dave Saraceno - Managing Director, USM Interactive

Artur Idib - Founder, AllYouCanTech.com

Keep BT Local

Meanwhile,Keep BT Local also stated its case in a statement and video.

Dozens of supporters of Keep BT Local Cooperative gathered at City Hall today to urge the City Council to seize an opportunity for the future of Burlington and to keep Burlington Telecom under local ownership.

Video of today's event.

Local business leaders, tech innovators, elected officials, and members of the Keep BT Local Board spoke Friday about the need to keep a key asset of our economic future in the hands of the people of Burlington.

KBTL Board Members outlined their revised and improved bid, which includes:

• An 8% loan rate for 10 years (down from 14%).
• An option for the city to take $1.5MM in cash rather than a 12.5% stake in Burlington Telecom.
• A line of credit to ensure optimum cash flow in the early years.
• A commitment from Maine Fiber (see attached statement) that it is not interested in owning BT, which means it will work with the cooperative to ensure that it is financially successful.
• A commitment to keep phone and internet pricing stable for three years, and only passing along the increased carrier costs for cable.
• A move to cut the price for 1G of service to $55 (the current price for 150MB of service), and boosting existing 150MB customers to 1G as a start to ensure that everyone has access to 1G of service in Burlington.

Today's speakers included: Michael Nedell, founder and COO of Localvore.co, Melinda Moulton, CEO, Main Street Landing Co., Carina Driscoll, former city councilor, state legislator and co-founder of Vermont Woodworking School, Andy Montroll, Vice Chair, KBTL Board, Rep. Selene Colburn (P-Burlington), Rep. Curt McCormack (D-Burlington), Rep. Brian Cina, (P-Burlington), City Councilor Max Tracy (P-Ward 2), among others. In addition, Dwight Allison, CEO of Maine Fiber, and Doug Hoffer, State Auditor, had speeches read on their behalf as they could not attend in person.

On Monday, KBTL announced that it will continue to support initiatives such as BTV Ignite at the current levels and beyond. And, it will develop earmarked funding mechanisms working with our members to support the tech economy and target specific needs working with local partners who represent our community. KBTL seeks to ensure that:

• There is targeted tech training, mentoring, and co-working spaces for the growing needs of the tech economy;

• Local educational institutions are supported in hosting tech competitions and innovation grants;

• Annual opportunities such as scholarships and internships are available to local high school students;

• The BHS Tech Center receives support to offer tech-focused training; and,

• Public Educational and Governmental Access channels are supported in the long term even as the world moves from cable subscriptions to directly streaming content via the internet.

A local Tech Leadership committee is being fostered with home grown experts who have taken our local tech economy to the level. They will guide and advise the KBTL Tech Innovation program. Early leaders who will join this group are Jan Schultz, CTO of Front Porch Forum, Michael Nedell, Founder and COO of Localvore.co, and Bradley Holt, formerly of BTAC and the BTV Ignite Advisory Committee, among others.

To keep apprised of our bid’s impact on the community, see our regularly updated FAQ page

The City Council votes on October 16 favored KBTL, but with some councilors that voted for KBTL concerned about thehigh debt load of the local bidder.

Video from Burlington City Council meeting October 16, 2017, courtesy of CCTVwww.cctv.org