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Friday, April 15, 2011

2-in-5 is 0-7

Another year, another demand estimate.

First, the obligatory 2-in-5 Rule rant. For the 7th straight year, the 2-in-5 Rule has failed. Priority 1 requests plus the Priority 2 requests from 90% applicants come to 3.2 billion. (Could this be the year that the FCC can't find enough money to fund Priority 2 for 90% applicants?) Internal Connections requests from 80%-90% applicants are up 18% from last year. I'm tired of beating this dead horse, but I'll keep it up until they haul it off to the glue factory. The 2-in-5 Rule must go.

Speaking of horrible rules, look at the result of the new ineligibility of "unbundled warranties": a 20% jump in Basic Maintenance requests by 90% applicants. Not to worry: many applicants still have no idea that their SMARTnet and PBX service contracts are no longer eligible, and they won't know how to cost-allocate when PIA smacks them, so look for denials to skyrocket.

Other observations:
Internet access requests are up about 17%, while telecom requests are only up about 3%. I'm guessing it's dark fiber and the loosening of Web hosting rules.

After a 77% drop last year, this year we see a further 65% drop in Internal Connections requests from applicants with a discount of less than 60%. The message is finally getting through: if your discount is less than 80%, the Priority 2 gravy train does not stop at your station, so there is no point in waiting on the platform.

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