Policy

Mediacom Hears Dial Tone in Iowa

3/24/2005 2:20 AM Eastern

Mediacom Communications Corp. has earned regulatory permission to launch phone service in Iowa.

The state's Utilities Board gave the MSO an operating certificate March 14 despite opposition from the Iowa Telecommunications Association.

The trade group for independent telephone companies criticized Mediacom's application, stating that its business plan could allow the cable operator to cherry-pick the neighborhoods it wishes to serve. The MSO will offer telephony in expensive-to-serve outlying areas, the ITA predicted.

Mediacom's voice-over-Internet-protocol service will be delivered over the operator's network, connecting to long-distance provider Sprint Corp., under terms of a partnership announced last August.

The MSO has not announced an Iowa launch date for the service, which will be sold at a discounted rate when bundled with video service or priced at about $50 per month as a stand-alone service.