After Allied Telesis Yokota made a mockery of our attempt to offer an olive branch and let them get their perspective out to our readers, we approached Americable Japan to see if they would talk with us. After having barely sent out the e-mail request to a general Americable Japan account Mr. James H. Smith, the President and CEO of Americable International Inc., responded to us and agreed to by interviewed by us. From that experience alone with Allied Telesis Yokota and Americable, it was completely night and day considering we are not even a customer of Americable and they were openly talking with us and taking time out of their busy schedules to essentially reach out to our readers. It was a refreshing moment to be able to ask a question get an actual answer.
ATSucks — Thank you, Mr. Smith, for taking the time to sit down with us and talk about ISP related services, Yokota Air Base, and your impressions of the Allied Telesis question. We know your time is precious so we will keep our quick Q&A as short as possible so that you can get back to taking care of our Navy brethren in Japan. Since your company, Americable Japan, left Yokota Air Base in late 2006, there have been significant problems with our new provider. In a recent Stars and Stripes article, it was suggested that stability of the telecom services provided continue to be a problem. From your own experiences with bringing a new telecom/broadband service to a foreign based US Military installation, can you give us some insight as to what are some of the potential problems with trying to start a new service on an installation such as Yokota.
Mr. Smith — Americable had some well documented problems with its initial Internet service primarily due to underestimating the demand for bandwidth.
Americable has not implemented full service for telephone. We offer Domatic VOIP which is similar to Vonage except that we have local support for hardware and service. We have identified partners in the industry that we will work with for implementation of phone service if the opportunity arises. It is essential that 911 emergency services function properly under all conditions and that the phone switch interfaces to the DSN switch according to JITC specifications.
ATSucks — How was Americable Japan able to overcome these problems and improve quality of service to its customers?
Mr. Smith — We have worked closely with our bandwidth provider, NTT, to stay ahead of the curve and have increased our pipe size by a factor of 10 since our initial start up. We have invested heavily in state of the art Motorola CMTS (cable modem termination service) equipment and run a 24×7 help line to assure good customer speeds and service. Generally significant improvements in quality are the result of major capital expenditures.
ATSucks — Within what kind of timeline could we normally expect these kind of improvements to be made?
Mr. Smith — Bandwidth upgrades take 3 months so you need to plan ahead BEFORE you have a problem. That was our biggest mistake 5 years ago when we brought up Internet. You have to have a board and owner that are committed to delivering quality service and willing to spend the money it takes to make it happen. Historically cable companies usually request long term franchise agreements so that there is time to recoup the initial cost and generate a reasonable return on investment. Americable just negotiated a 10 year extension on our franchise with the Navy and we are making a major investment in new technology to eliminate DVDs and dramatically improve picture quality. We feel that we have developed an underlying infrastructure that we can build on for the next 10 years.
ATSucks — Why do you feel that internet on US Military Installations cost more than what is available right outside the gates?
Mr. Smith — Remember that the bandwidth providers know that 95% of the traffic coming from our bases is going trans-Pacific so they charge a higher premium than they would if they felt the bulk of our traffic was going to stay in Japan.
ATSucks — I see that for nearly $75 a month, I can get 15Mbps from your service. Care to venture a guess as to why Allied Telesis is charging Yokota customers the same for 10Mbps?
Mr. Smith — Maybe they haven’t negotiated bandwidth costs as aggressively as we did. Obviously AAFES is taking money off the top so that is probably being passed on directly to the customer.
ATSucks — Allied Telesis has been using your channel lineup as a comparison to their own services/prices. Would you care to comment on their interpretation of the facts?
Mr. Smith — Number of channels and quality of programming are two different things. Stay tuned for our new lineup coming soon.
ATSucks — As Allied Telesis does not enjoy exclusive access to Yokota Air Base, has Americable made overtures to either AAFES or the Installation’s Commmander(s) to attempt to come back?
Mr. Smith — We offered to stay for another year during transition as Allied clearly wasn’t ready to deliver services at the end of our franchise. That was not accepted by either Base Command or AAFES. Allied felt our infrastructure was not needed long term so we could not come to terms with them on an acceptable price. Ironic that they are now using that infrastructure 2 years later after failing to make IPTV work as promised. The big loser was the base personnel. We have since approached base command at Yokota several times to offer competing services.
ATSucks — What was the response you received?
Mr. Smith — No response to date.
ATSucks — Have you attempted to become an AAFES vendor to directly compete with Allied Telesis?
Mr. Smith – AAFES has not offered that as an option for Yokota. We are responding to RFPs for Zama and Misawa but have no formal agreements in place. Our primary concern is the service that we can deliver to the men and women in uniform and their families. If AAFES can add value to the process we are happy to work with them.
ATSucks — Are you saying that the AAFES banner does not add any true value for the customers on an installation?
Mr. Smith — Not at all, but the primary concern should be competitive offerings to the end users.
ATSucks — Where do you see Americable Japan serivces changing over the next year?
Mr. Smith — Soon we will introduce the first digital system for the military installations in Japan. We have invested heavily in a flexible infrastructure that allows us to control set top boxes from Yokosuka thus dramatically simplifying the addition of additional bases. We will be streaming over 50 channels from the States with many channels not seen to date on bases in the Pacific region. Stay tuned!
ATSucks — Is that going to affect your pricing much or are things going to remain stable for the most part?
Mr. Smith — Our basic digital tier will be $52.95 with more channels than our current Tier2 at $52.95. Internet pricing remains the same – 2-5Mbps $38.95, 10-12Mbs $59.75 and 15-20Mbps $74.95.
ATSucks — Sure wish that I was at an installation with the option of having Americable Japan’s services again. Mr. Smith, thank you for your time and my best wishes to you and your company over the next year. Thank for your taking time out of your busy schedule to enlighten about the perils of running an ISP in Japan on a US Military installation.
What a shame we can’t get some competitive services on Yokota. It was great when Softbank and Americable Japan were competing for business at Yokota. Customers received the best services then, but as soon as Americable had to leave, service and reasonable prices flew out the window leaving Yokota’s customers wanting.
Mr. Smith was kind enough to provide us with a small sampling of their coming upgrades along with an idea of what they will be providing digitally to homes. Remember, this was stipulated in Allied Telesis contract with Yokota, but we have not seen it to date since their IPTV failure.